Investors are betting that China’s two biggest sportswear companies will emerge from the pandemic even stronger.
The Hong Kong-traded shares of both Anta Sports Products Ltd. and Li Ning Co. have more than doubled in the past 12 months, pushing measures of valuation such as price-earnings ratios unusually high. Anta’s stock closed at 130.90 Hong Kong dollars Wednesday, the equivalent of $16.83, giving it a market value of more than $45 billion.
HSBC analyst Lina Yan said the two are the only domestic brands expanding their shares of the Chinese market. “This scarcity value attracted investors from all avenues,” she said. Anta ranks third and Li Ning fourth in China, according to market-research firm Euromonitor International, trailing only Nike Inc. and Adidas AG . And the Chinese companies’ stock-price gains beat both: Nike has risen 62% in the 12 months to Tuesday, giving it a market value of about $217 billion, while Adidas is up 37%.
In the past two weeks, local apparel stocks including Anta and Li Ning have also gotten a boost from a Chinese boycott of international businesses that have shunned cotton produced in the western Xinjiang region over forced-labor concerns.
Turned out Li-Ning is a foreign owned company
Nike really fucked themselves on this one
If you are stupid and rich enough
Why would chinese consumers buy those brands who run anti china propaganda campaign to shame china?
goodnews