360 Degrees: Multi Brand Strategy To Force Competition, Enter The Competition Industry Layout Younger

According to the world clothing shoes and hats net, in April 11th, Hong Kong stocks

All sectors of the sector surged, and Anta sports (45.45, 0.00,0.00%), 31st degree (2.64, 0.04, 1.54%), XTEP International (4.83, 0.07, 1.47%) and Lining (9.74, 0.53, 5.75%) stocks rose collectively.

Sports intraday rose more than 10%.

The international inventory was up by more than 6%, the highest increase of 360 degrees was nearly 8%, and Lining was also up more than half a year.

Since the beginning of the year, the stock prices of many sporting goods companies in the Hong Kong stock market have hit many new highs for many years.

Among them, Anta sports stock price innovation is high 46 HK dollars, the market value exceeded HK $2 billion, other XTEP international and Lining also walked out of the best market in recent two years.

In fact, after going through inventory in 2012, the operation environment of China's sporting goods industry has gradually improved. In the 2017 earnings season, the sporting goods companies generally delivered good results.

However, the share price of the first tier brand in China has been lagging behind for nearly half a year.

From the P / E ratio, 31st degree (1361.HK) is the lowest among the four listed companies, even less than 10 times. The price earnings ratio of Anta and Lining is over 30 times in the same period.

Careful inspection shows that the company's fundamentals are sound, and its value as a Hong Kong stock is subject to a serious underestimation.

2017 fiscal year growth is steady, and overseas business is developing strongly.

According to the 2017 earnings report released at 31st degree, the group's turnover amounted to 5 billion 158 million yuan during the reporting period, up 2.7% from the same period last year.

In terms of earnings, gross margin was 2 billion 156 million yuan, an increase of 2.2% over the same period last year, and profit attributable to equity holders increased by 13.4% to 457 million yuan.

In addition, in order to reduce costs and increase efficiency, 331 degrees have greatly improved the store efficiency and retail sales by reducing the number of stores.

In 2017, 331 degrees grew strongly in the international sector business. The group has 1241, 1030, 378 and 40 multi brand sporting goods shop outlets in Brazil, the United States, Europe and Taiwan respectively, and has achieved significant improvement over the 2016 years.

Sales of overseas businesses increased by 10.7% to 89 million 300 thousand yuan over the same period last year, accounting for about 1.7% of the group's total revenue by the end of 2017.

The next three to five years will continue to expand overseas business. It is expected that the overseas market will become an important source of group revenue contribution.

Multi brand strategy makes great efforts in the new year of competition, stepping into the younger generation of the competition industry layout.

After years of development, the development strategy of multi brand has been formed. Now it owns 361 degree core brand, 361 degree children's clothing and ONE WAY.

It is worth mentioning that the group's children's clothing business revenue grew 9.2% to 711 million yuan in 2017, accounting for 13.8% of the total revenue, and the highest growth rate in many business sectors.

Moreover, as a leading sporting goods brand in China, 31st degree has been actively developing the sponsorship marketing strategy. The group successfully sponsored the Guangzhou Asian Games, Inchon Asian Games and Rio Olympic Games in 2010, 2014 and 2016 respectively.

2018 is a new year for sports events. The Winter Olympics in Korea just came to a close. The Asian Games in Jakarta will soon take over.

Prior to this, the 31st degree announced that it will become the official partner of the 2018 Asian Games in Jakarta. Participating in supporting large-scale sports events will greatly enhance the brand awareness and reputation of the company, and will also promote the layout and expansion of the overseas business.

It is noteworthy that the 2018 competition will be the first demonstration project to enter the Jakarta Asian Games in 2018 and the official Asian Games in Hangzhou 2022.

According to the China Electricity Industry Research Report, it is expected that the number of users will exceed 320 million in 2018, most of them are young people. With the gradual improvement of the consumption ability of young consumer groups, the market of young groups will become a must for all major sports brands.

In order to attract more young consumers, 31st degree took the opportunity to enter the competition industry, collaborate with the famous QG team of the competition team, launched the sports apparel and accessories jointly with QG, further enhanced the brand layout of the group and promoted the influence of the 361 degree brand in the young consumer group.

Boao sports forum focuses on ice and snow sports. ONE WAY brand will benefit directly from Beijing Winter Olympic Games.

At present, the Boao forum for Asia is being held in Hainan. At the Boao Sports Forum in April 9th, representatives from all walks of life discussed and interpreted the hot spots of China's sports industry, Winter Olympic Games and sports consumption.

At the current sports forum, the discussion on China's ice and snow sports and ice and snow industry is particularly heated. With the upcoming winter Olympics in Beijing in 2022, China's ice and snow sports and ice and snow industries are facing new opportunities for development.

According to the "China ice and snow tourism development report (2017)" released by China Tourism Research Institute, the number of ice and snow tourism in China will reach 340 million passengers and 670 billion yuan in the 2021 to 2022 ice and snow season.

Ice and snow tourism will drive the output value of tourism and related industries to RMB 2 trillion and 880 billion yuan, and the goal of "three hundred million people participating in ice and snow sports" will be overfulfilled in 2022. The development of ice and snow sports industry is expected to usher in ten years of gold.

It is one of the earliest sports brands in the field of ice and snow in China. Its positioning in high-end outdoor sports brand ONE WAY has accumulated good brand awareness and influence.

By the end of 2017, ONE WAY had 46 self operated stores in China and had entered into an exclusive cooperation agreement with China Ski Association to sponsor China's national ski team and sponsor national ski jumping team.

With the arrival of the Winter Olympic Games in Beijing, I believe that whether in the company's brand awareness or performance, the contribution of ONE WAY brand will gradually appear.

Recently, the securities and Futures Commission announced that the daily quota of Shanghai and Hong Kong through Shenzhen and Hong Kong shares, Shenzhen Stock Exchange and Hong Kong stocks will be expanded to 4 times. In the future, there will be more northbound capital going to the Hong Kong stock market, and the relevant Hong Kong stocks will benefit from this policy.

The valuation of 331 degree has greater advantages than other companies in the same industry, and the group maintains a stable high dividend policy. At the same time, the company has good fundamentals, and I believe that more mainland funds will be favored in the future.

At the bottom of the callback, the 31st degree share price is a good time for the layout. It is suggested that investors can take an active interest in the layout.

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