/ Asahi/March 25, 2022, Guangzhou -- Anta Sports Products Co., LTD. (hereinafter referred to as "Anta" or "Anta Group"; Stock code :2020.HK) announced its 2021 results. Thanks to the proper control of the epidemic, favorable national policies, the trend of domestic consumers shifting from international brands to domestic products, and the transformation of Anta brand to face consumers directly, Anta Group achieved 49.33 billion yuan in revenue during the reporting period, an increase of 38.9% over the same period last year. Net profit returned to the mother was 7.72 billion yuan, up 49.6% year on year.
At the same time, in this fiscal year, Anta Group's gross profit margin increased 3.4pct to 61.6%, the net interest rate of the parent increased 1.2pct to 15.7%, and Anta's free cash inflow increased 56.5% to 10.37 billion yuan, cash reserves at the end of the year increased 4.2 billion to 24.58 billion yuan, reflecting a healthy cash generation capacity, and strong Strength against external uncertainty.
In summary, as the first sports goods group in China, Anta Group has strong product profitability and operation control ability. Considering that Anta's main brand "win" plan accelerates its growth with the help of the Olympic Games, it also looks forward to the sustained high-quality growth of FILA brand and the rapid growth of cutting-edge brands represented by DESCENTE and Archaeopteryx, China International Capital Corporation (41.13 +0.05%, medical stock) and Citic Securities (20.78) +0.48%, medical stock), Tianfeng Securities (3.51 +1.15%, medical stock) and other leading institutions gave Anta Group "buy" and "outperform industry" investment ratings.
Chinese goods are on the rise just in time
Anta's revenue surpassed Adidas's Nike, leading the industry in growth
Domestic potential energy has risen, high-quality sports brand has attracted a new growth path!
On the one hand, consumer confidence continues to release with the prosperity of national power, the rise of culture and the change of purchasing power of the new generation, and the worship of foreign brands returns to rationality. Xinjiang cotton, as a short-term event, activates medium - and long-term consumption changes, and the era of domestic products has come. On the other hand, with Anta as the representative of the national brand, at present, in terms of product force, operation force and other aspects, has been a comprehensive standard of overseas brands, and shoes and clothing hard technology does not lose, "traditional cultural differentiation + emotional identification" break through, the terminal channel has taken on a new look.
Looking at specific data performance, Anta Group's revenue volume of 49.33 billion yuan in 2021 is about 1.44 times that of Adidas China and 97% that of Nike China. And according to the current revenue growth comparison, Anta Group will complete in 2022 to overtake Nike.
At the same time, from the perspective of extended time, since its annual revenue exceeded 10 billion yuan in 2015, Anta Group's revenue has shown a trend of continuous increase, and its annual compound growth rate from 2015 to 2021 is about 28.2%, obviously leading the industry.
According to the data, Anta Group's market share of domestic sneaker wear increased by 1 percentage point year-on-year to 16.2 percent in 2021, increasing its ranking from third to second, surpassing Adidas (14.8 percent) and further narrowing its gap with Nike.
Multi-brand advantage is stable
Three growth curves help Anta take off again
Anta Group has always been adhering to the development strategy of single-focus, multi-brand, in-depth sports goods segmentation track, multi-brand strategy to meet the needs of diversified market, and join hands with Yamafen Group global layout; The Winter Olympics effectively enhance the brand heat, boost the sports goods market demand.
In terms of brand income, Anta's revenue in 2021 was 24.012 billion yuan (48.7% of the total), up 52.5% year on year; The revenue of FILA was 21.822 billion yuan (44.2% of the total), increasing by 25.1% year-on-year; Revenue of all other brands reached 3.494 billion yuan (7.1 percent of the total), up 51.1 percent year on year. As can be seen, ANTA Anta and FILA Fila, two major brands, both have revenues of 20 billion yuan, forming two growth engines driven by two wheels. Looking at the global sports goods industry, only Anta Group and VF Group have two brands with revenues of more than 3 billion dollars at present.
At the same time, in the market share of the top 5 brands, Anta Group exclusive 2; In the market share of children's brands, Anta Children reached 2%, ahead of Nike Children (1.8%) and Adidas Children (1.6%), and ranked first in the market share of children's sports shoes.
In addition, in terms of the new brand, Desante DESCENTE will seize the opportunity of the popularity of ice and snow sports in China to strengthen its influence in ice and snow sports, and the number of DESCENTE stores is expected to be 190 to 200 by the end of 2022. KOLON Sports will improve its product portfolio, and Anta expects the brand to grow by more than 30% in 2022. The number of KOLON SPORT stores in mainland China is expected to be 180 to 190 by the end of 2022. Amer will move forward with "five billion euro plans" and contribute to Anta's profits. The above multi-brand development strategy shows a good momentum of rapid rise, which fully verifies Anta Group's multi-brand incubation operation ability and the success of the strategy of laying out the niche market segmentation track in advance.
Kaiyuan Securities believes that Anta Group focuses on the golden track of sports equipment, strengthens the moat of scientific and technological research and development, continuously incubates the multi-brand matrix with differentiated competitive advantages, covers the consumers who love sports in different market segments and different professional fields. Under the background of favorable policies and the general enhancement of the people's sports awareness, the differentiated three growth curves have laid a solid foundation for Anta Group's high-quality growth Solid foundation.
Continuous channel optimization
We will attach great importance to research and development and accelerate investment in digitalization
According to the annual report, in 2021, Anta Group spent 1.13 billion yuan on research and development activities, accounting for 2.3% of revenue. The proportion and amount of R&D investment above are the highest among local sports goods enterprises, demonstrating the long-term determination to attach importance to independent innovation, consolidate the science and technology moat, and build core competitiveness.
At the same time, Anta Group also works with Tsinghua University, Donghua University and other well-known universities to build a number of "innovation joint research institutes", build a deep integration of production, university and research innovation and talent training platform, integrate the world's top sports technology research and development force, further consolidate the basic innovation and research in the field of sports shoes.
In addition, Anta uses big data to analyze stores' operational data in real time to manage inventory more effectively and maintain inventory at a reasonable level. At the same time, it continues to add intelligent value to the whole value chain, accelerating the layout in member value, official website, large stores' precise crowd operation and public domain drainage, in order to cope with the change of consumer habits and trends since the outbreak of the epidemic. Anta has made online sales more effective with "live streaming plus e-commerce", while allowing different brands to share resources through integrated e-commerce platforms. In the current fiscal year, Anta's e-commerce revenue contributed 29% of its overall revenue, up 50% in absolute terms from the same period in 2020.
In general, Anta Group, as the leader of the domestic sneaker wear industry, adheres to long-term optimism and completes four tasks, namely Anta upgrading breakthrough, FILA high-quality growth, group digital transformation, and organization and manpower upgrading, so as to achieve the first market share in China by 2025, and there is still a large room for growth in the future.
