Anta Sports sees biggest ever six-month profit
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Anta Sports sees biggest ever six-month profit

Chinese sportswear retailer Anta Sports has reported its biggest ever six-month profit for the first half the year. The company said that sales of its kids’ product line soared, and a promising showing on the ecommerce front, drove performance. The company also benefited from wider industry trends, as China’s sports sector got stronger. Investors liked what they saw, and the company’s share price rose by 6% to an all-time high after the announcement was made.

Anta Sports’ share price is up by 21% so far in 2017

anta1608

SOURCE: Yahoo Finance

The record beating net profit that the company managed to deliver in the first six months of 2017 came in at 1.45 billion yuan – a significant improvement from last year’s comparable figure of 1.13 billion yuan, and a beat against analysts’ expectations of 1.31 billion yuan.

The company also saw record beating revenue – 7.32 billion yuan over the period. That’s a rise of 19.2% from the first half of 2016. Anta’s gross profit margin rose too, by 2.7% for a final margin of 50.6%.

In a statement, the company said that sportswear for younger consumers was outperforming, with its FILA KIDS collection showing strong growth. It said it sees “tremendous opportunities in the future development and potential” of the ANTA KIDS brand going forward.

It also said it was considering a variety of routes to growth – including foreign acquisitions. The statement continued: “we aim to optimize our brand mix by seeking M&A opportunities involving high-end international brands that can compliment and enhance the Group’s ability to meet the sportswear needs of each consumer.”

Anta operates 9,041 stores (figure as at the end of June), compared to 8,860 at the end of 2016. It expects to hit somewhere between 9,200 and 9,300 by the end of 2017, and said that the Chinese sports sector would outperform GDP growth over the next decade.

Disclosure

Dominion holds Anta Sports in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.