Key points of the report:
The Olympic Games stimulate the macro economy, itemized revenue and expenditure or corresponding business opportunities
From the macro-economic point of view, the host city of the Olympic Games will invest in local infrastructure, tourism, sports, exhibition, catering and accommodation and other related industries, which will stimulate the local economy and even the whole country. Take China as an example. From 2002 to 2007, Beijing’s economy maintained a double-digit growth rate, with an average annual growth rate of 12.5%, 1.8ppt higher than the average growth rate from 1996 to 2000. From a national perspective, according to the data of the National Bureau of statistics, from 2002 to 2008, the Beijing Olympic Games will increase China’s GDP by an average of 0.3% every year.
From the perspective of itemized revenue and expenditure, for the host country, the revenue is mainly the event broadcasting right, sponsor support, ticket revenue and sales revenue of licensed goods, and the cost is mainly the expenditure on venue construction and transformation, hardware equipment and consumption. Under the influence of the epidemic, the proportion of ticket revenue for the Tokyo Olympic Games decreased, and covid-19 epidemic related expenses were added.
There are a large number of sponsoring suppliers and service providers, and green energy is the brightest under double carbon
Venue construction and Transformation: the venue construction budget for the Beijing Winter Olympic Games is about US $1.51 billion. According to the data of Beijing Winter Olympic bid committee, the budget for event preparation is about US $1.56 billion, with government subsidies accounting for 6%. The budget for venue construction including competition venues and non competition venues is about US $1.51 billion, of which 65% comes from social investment.
Sponsorship supply services: according to the data of the market development department of Beijing Winter Olympic Organizing Committee, by the end of December 2021, 45 sponsorship enterprises have been signed for the Beijing Winter Olympic Games, including 11 official partners, 11 official sponsors, 10 official exclusive suppliers and 13 official suppliers.
Technical service support: according to the data of Beijing Municipal Commission of science and technology, more than 200 technologies have been tested and used in the Winter Olympic scene, involving information engineering and software engineering, public security, HD video, 5g and new energy, which are applicable to more than 60 subdivided application scenarios. AI, virtual reality, high-definition display and other technologies will be fully applied to the reporting, broadcasting, navigation and other scenes of the Winter Olympic Games, so as to improve the operation efficiency and people’s viewing experience.
Energy & transportation facilities: the Beijing Winter Olympics will be the first truly carbon neutral Olympic event. In June 2019, the Beijing Organizing Committee for the Winter Olympic Games issued the work plan for low carbon management of the Beijing 2022 Winter Olympic Games and the winter Paralympic Games, which identified 18 carbon emission reduction measures and 4 carbon neutralization measures. Comprehensively realize 100% renewable energy to meet the regular power consumption demand of venues, promote new energy vehicles in each competition area, and actively promote the demonstration application of hydrogen fuel vehicles in line with the relevant model catalogue. Sales of licensed products: in terms of online sales, BOCOG opened the official Olympic flagship store in tmall. In terms of offline sales, the Beijing Winter Olympic team will set up exclusive stores or counters to sell licensed goods for the Beijing Winter Olympic Games and create a unified store image. By the end of 2021, BOCOG had opened more than 190 franchised retail stores nationwide and developed more than 5000 franchised products in 16 categories.
Investment advice
The Winter Olympics may bring overall economic boost to China and its host cities. There are huge potential business opportunities in such segments as venue construction, sponsorship services, technical support, energy and transportation supporting facilities and sales of licensed products. It is suggested to pay attention to the leading enterprises of the subdivided track. Suggestions: Anta sports, Bosideng, Keeson Technology Corporation Limited(603610) , Jade Bird Fire Co.Ltd(002960) , Hangzhou Arcvideo Technology Co.Ltd(688039)
The risk indicates that the epidemic continues to spread; Downstream demand was lower than expected.
