NewAnta’s first-half profit tops estimates, bolstered by dressing the Chinese team at Rio Olympics

First-half net profit rises 17 per cent; analysts see better full-year performance

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The Chinese women's volleyball dressed in Anta’s kit at the Rio de Janeiro Olympic Games. The Chinese sportswear maker designed the national team’s outfit for the 2012 London and 2016 Rio Games. Photo: David Wong

Published: 1:50pm, 29 Aug 2016Updated: 10:59pm, 29 Aug 2016

Anta Sports Products’ first-half net profit topped analysts’ estimates as the Chinese sportswear maker rode a new wave of consumer demand following its designs for the Chinese team at the Rio de Janeiro Olympic Games. Demand was also helped by a government push for more Chinese to exercise and get fit.

Net profit jumped 17 per cent to 1.13 billion yuan in the first six months, higher than the 1.11 billion yuan expected in a Reuters consensus poll of analysts. Sales rose 20 per cent to 6.14 billion yuan during the period.

The Fujian-based sporting goods maker, the first among local peers to pull out of a two-year downturn, was riding on the crest of the country’s health awareness, as the Chinese government ramped up efforts to cultivate the sports industry – which the government wants to reach five trillion yuan by 2025.

“We expect the development and reform of the sports industry to accelerate at a faster pace in China, and ultimately the scale and quality of the industry will be improved,”said Anta chairman and chief executive Ding Shizhong. “We will continue to utilise our exclusive sponsorship resources and the influence of our endorsers to strengthen the equity and credibility of our brands.”

Anta’s share of China’s market for sportswear and athletics gear was 9.9 per cent in 2015, higher than Chinese brand Li Ning. Still, that is smaller than Nike’s 17.3 per cent market share and Adidas’ 16 per cent, making Anta the largest Chinese brand on the mainland.

The company announced an interim dividend of 34 HK cents, compared with 30 HK cents in 2015.

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}First-half net profit rises 17 per cent; analysts see better full-year performance

First-half net profit rises 17 per cent; analysts see better full-year performance