China’s biggest sportswear brand by market share ANTA Sports Products Limited reported on Wednesday a 17 percent rise in 2016 net profit, expecting steady growth for the industry amid increasing consumer demand.
As people become more health conscious, “the coming 10 years will be a golden era for Chinese sports industry,” said ANTA’s chairman Ding Shizhong.
The company’s stock rallied 56 percent in the last eight months, to which the high-end fashion sportswear sector FILA had most contribution with its sales rise of more than 50 percent compared to last year, according to the Swiss bank UBS.
ANTA also recorded a weak low single-digit rise in orders at the trade fair for the third quarter of 2017, as it announced to form joint venture agreement with the South Korean-based manufacturer Kolon Sport on the same day, saw by the Investment bank Jefferies as key catalysts for its in-line annual results.
The rising competition and hike in raw material cost can put the business at risk, said Jefferies as ANTA underperformed other large Hong Kong-listed Chinese companies by 5 percent in the past one month. UBS also downgraded its stocks from buy to neutral.
Maintaining a hold, Jefferies said ANTA’s future growth would continue to be driven by non-ANTA brands and e-Commerce.