The 2022 Winter Olympic Games opened grandly in Beijing, China yesterday. There are many highlights of this ice and snow event. In addition to the competition of athletes, the “competition” between global sportswear brands has also attracted the attention of investors.
At the opening ceremony of the Winter Olympics held on February 4, Anta, Adidas, lululemon, UNIQLO, Armani and other well-known brands appeared one after another. Interestingly, there are many listed companies behind these brands. Among them, Anta sports, a representative of domestic products, ranks among the top four with a market value of 273.5 billion yuan.
Perhaps many people don’t know that Archaeopteryx down jacket, which attracted much attention on the Internet last night, is also a brand of Anta. In just 10 years, Anta has grown into an international company and created a hundred times myth in the capital market, which is widely sought after by institutions.
Listed companies behind Winter Olympic clothing
Behind the well-known clothing brands appearing in the Winter Olympics, many companies have landed in the capital market. Ranked by market value, fast retailing group, Adidas, Lulu lemon, Anta sports and Weifu group rank top.
1. Fast retailing group
The Swedish delegation to the Winter Olympics wore UNIQLO clothes. UNIQLO is the core brand of Japan fast retailing company. It was established in 1984. At that time, it was a small clothing store selling suits. Now it is a well-known brand. UNIQLO ranks 168th in the 2018 World Top 500 brands list.
The fast retailing group behind UNIQLO is a listed company, ranking 428th in the 2020 Forbes Global Enterprise 2000 list. Fast retailing group is listed in Tokyo and Hong Kong. Hong Kong stocks are referred to as “Fast Retailing”, code 06288. The latest market value is HK $466.724 billion, equivalent to about 381.141 billion yuan.
2. Adidas
The German delegation was dressed in Adidas, a well-known local sports brand. Adidas, founded in 1949, is a member company of Adidas AG, a German sporting goods manufacturer. Named after its founder Adolf ADI Dassler, it began to produce footwear products in heitsogen orah in 1920. In December 2018, the “2018 World Top 500 brands” compiled by the world brand laboratory was announced, and Adidas ranked 49th.
Adidas (ADR) is listed on US stocks, or addyy for short. The latest market value of the company is US $53.29 billion, equivalent to RMB 338.952 billion.
3. Lulu lemon
Lululemon is the designated clothing supplier of the Canadian delegation for the Winter Olympics. Lulu lemon was founded in Vancouver, Canada in 1998 by chip Wilson. In 2000, Lulu lemon opened its first store in Vancouver. The company started from yoga clothes and gradually expanded into a comprehensive sports brand.
Lulu lemon was listed on NASDAQ in 2007. At present, the latest market value is US $43.491 billion, equivalent to about 276.622 billion yuan.
4. Anta sports
At the opening ceremony of the Winter Olympics, the Chinese delegation wore a touch of beautiful Chinese red, which was tailored by the domestic brand Anta. Anta Group is familiar to Chinese people. It is a comprehensive and multi brand sporting goods group specializing in the design, production and sales of sports shoes, clothing, accessories and other sports equipment. Anta was founded in Jinjiang, Fujian Province in 1991. Its founder Ding Hemu was born in a farmer’s home. After starting with sports shoes, he expanded to sports clothing. In 2021, the company ranked 289th in the Fortune 500 list of China.
In 2007, “Anta Sports” was listed in Hong Kong, code 02020, and then listed in US stocks. At present, the latest market value is HK $334.942 billion, equivalent to about 273.524 billion yuan.
5. Weifu group
The north face worn by the South Korean delegation is a brand of Weifu group, a well-known listed clothing company.
Weifu group was founded in reading, Pennsylvania in 1899 and has developed into one of the largest listed garment companies in the world. The company has a series of international brand products: denim casual wear, underwear, work clothes, knitwear, children’s wear, backpack and swimsuit, etc.
Weifu group was listed on the New York Stock Exchange as early as 1969. At present, the latest market value is US $24.792 billion, equivalent to about 157.692 billion yuan.
In addition to the above listed companies, Ralph Lauren, who is worn by the U.S. team, is listed on U.S. stocks, with the latest market value of $8.443 billion. Ben Sherman, worn by the British delegation, belongs to Oxford industries group, a US listed company. The clothing supplier of the Italian delegation is Armani, a well-known brand, but Armani has not yet been listed.
Anta sports
As a domestic brand, Anta’s debut at the Beijing Winter Olympics attracted special attention. In the capital market, Anta sports is a big bull stock with higher yield than Maotai. Calculated according to the stock price of rights restoration, the ten-year return is more than 100 times.
Behind the rapid expansion of Anta’s market value is its expansion of its brands. In 2009, Anta Group acquired the trademark operation right of Italy brand Fila (Fiat) in Chinese mainland, Hongkong and Macao, and officially launched the international brand acquisition strategy.
In 2016, Anta exclusively operated the brand business of desant in Greater China with a 60% stake of 150 million yuan. In the first half of 2017, Anta launched its retail business operation and entered the high-end winter sports market, covering various products such as skiing, comprehensive training, running and golf. The brand is also the designated clothing brand for the Japanese Winter Olympics.
The most famous acquisition took place in 2018. Anta sports joint private equity fund fountain vest partners and Fangyuan capital successfully acquired Amer sports, with a tender offer value of about 4.6 billion euros (about 36 billion yuan). You may not have heard of “Amer sports”, but its outdoor brand Archaeopteryx and tennis brand Wilson are well-known sports brands. Since then, Anta has put Archaeopteryx, a big outdoor brand, under the door.
Recently, Anta Sports announced the retail flow of Q4 in 2021. Anta’s main brand recorded a year-on-year increase of 10-20%, FILA recorded a year-on-year increase in the number of units, and other brands increased by 30-35%. Throughout the year, Anta’s main brands increased by 25-30% year-on-year, FILA increased by 25-30% year-on-year, and other brands increased by 50% – 55% year-on-year.
In addition, the company released a profit forecast. It is expected that the overall revenue of the group will increase by no less than 35% year-on-year in 2021, the net profit (excluding the loss of the joint venture) will increase by no less than 35% year-on-year, and the net profit (including the loss of the joint venture) will increase by no less than 45% year-on-year.
On December 18 last year, Anta Group officially announced the new decade strategy and sustainable development goals, and made it clear that the next development goal was upgraded from “single focus, multi brand and all channels” to “single focus, multi brand and globalization”. “Single focus” and “multi brand” continue the company’s previous planning, which means that the group will continue to focus on the golden track of sporting goods, adhere to the multi brand management strategy and give full play to the synergy. “Globalization” means that the company is committed to achieving the global market share leadership of Anta Group + Amer group by 2030. 1) Anta’s main brand: explore the international market and go to the world stage. 2) Amer: strengthen the development of three major markets in China, North America and Europe, and accelerate the realization of five 1 billion euro goals, that is, by 2025, Archaeopteryx, Wilson, Salomon, Chinese market and DTC channel will achieve 1 billion euro sales respectively.
Guosen Securities Co.Ltd(002736) said in the research report that the holding of the Beijing Winter Olympic Games is expected to drive the development of ice and snow economy. Local sports brands actively seize the opportunity to form a multi-directional layout and value domestic products, and take this opportunity to improve brand influence and reputation. In the medium and long term, the development of ice and snow sports industry is an important direction of national policy. Sports functional brands have laid out ice and snow sports product lines one after another, which is expected to grasp the dividend of China’s ice and snow sports development. Focus on recommending local sports functional brands Anta sports, Li Ning, Tebu international and Bosideng. At the same time, they are optimistic about the upstream and downstream high-quality leaders Shenzhou International, Huali Industrial Group Company Limited(300979) , taobo and Baosheng international that benefit from the prosperity of sports tracks.
