Thursday, 25 February 2010

Anta Sports enjoys 40pc leap in profits

Anta Sports Products, whose goal is to become the mainland’s leading domestic sportswear retailer by 2013, said yesterday that net profit rose nearly 40 per cent to 1.25 billion yuan (HK$1.42 billion) last year.

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Guanyu 道 said...

Anta Sports enjoys 40pc leap in profits

Celine Sun
25 February 2010

Anta Sports Products, whose goal is to become the mainland’s leading domestic sportswear retailer by 2013, said yesterday that net profit rose nearly 40 per cent to 1.25 billion yuan (HK$1.42 billion) last year.

Turnover surged 27 per cent to 5.87 billion yuan and net profit margin grew from 19.3 to 21.3 per cent.

The Fujian-based footwear and apparel producer attributed the growth mainly to an increase in the average wholesale and retail prices of its products, an improvement in product mix and rapid expansion across the country. Shares of Anta Sports rose 3.17 per cent, or 36 HK cents, to HK$11.70 yesterday.

The management is optimistic about 2010, expecting same-store sales will continue to keep a 5 to 10 per cent increase this year.

Currently, there are 6,591 Anta Sports stores in the country, 924 more than a year earlier. It also operates 343 Sports Lifestyle series stores and 228 Kids series stores.

Chief executive Ding Shizhong said the company planned to expand the retail network to 7,200 Anta Sports stores, 300 Kids stores and 600 Sports Lifestyle stores by the end of this year.

Last year, Anta Sports beat Li Ning and Adidas to become the sponsor of the official sportswear for the Chinese national teams competing at 11 major international competitions, including the 2010 Winter Olympics in Vancouver and the 2012 London Olympics.

Anta Sports hopes to replace Li Ning as the mainland’s No 1 home-grown sportswear retailer.

“Our goal is to become the market’s leader in terms of both turnover and brand recognition by 2013,” said executive director James Zheng Jie.

Aside from the mass market, Anta Sports also acquired Italian brand Fila on the mainland and in Hong Kong and Macau in an effort to tap into the high-end market.

Anta Sports estimates its capital expenditure this year at between 260 million and 270 million yuan, mainly to establish an operation centre in Xiamen and investment in production lines and facilities.

The company proposed a final dividend of 12 HK cents and a special dividend of 11 HK cents per share.