Sporting Goods Sector Weakened Lining Fell 7.09% Anta Sports Fell 2.37%

On December 10th, the sporting goods unit fell by nearly 3%. As of press release, Lining (24.2, -1.20, -4.72%) fell 7.09%, and Anta sports (72.05, -1.90, -2.57%) fell 2.37%.

Prior to this, Lining announced the latest order and operation status, same store sales, the third quarter of 2009 (up to September 30, 2019), the whole platform (retail + wholesale + line, excluding Lining Young) recorded a high growth 10%-20%, and maintained a relatively high growth rate. Quarterly retail sales, the whole platform recorded a low growth 30%-40%, faster than the previous quarter (Q2 recorded a low segment growth of 20%), because three channels are accelerating. In terms of order amount, orders for the third quarter (excluding Chinese Lining and Lining Young) recorded a low growth of 10%-20%. Some analysts believe that the market is worried about the weak growth of orders in the next quarter, and the market is worried about the current valuation after strong growth in the previous period.

Anta sports announced on Friday that the company expects 2019 shareholders to account for profits (by the combined benchmark, excluding the loss of the joint venture), which will grow by no less than 45% compared to the same period (the profit attributable to shareholders of the 2018 fiscal year is about 4 billion 100 million yuan). According to the announcement, the above figures do not account for the loss of Mascot JVCo (Cayman) Limited (JVCo) of the joint venture, and JVCo is the holding company of Amer Sports Corporation (Amer Sports). At the notice date, JVCo obtained the preliminary results of the purchase price allocation, but the accounting treatment of Amer Sports business merger was not yet completed. According to the latest information obtained by the company, it is expected that in the 2019 fiscal year, the loss of the joint venture company will not be more than RMB 650 million yuan, and the related one-time cost involved will not be more than RMB 200 million yuan and the initial result of the purchase price allocation will not be more than RMB 500 million yuan.