Anta Stock Price Storm Again, What Is The Report Of Muddy Water Joint Report?

The protracted war between muddy water and Anta has become more and more dull with time. Muddy water continues to accuse Anta of controlling its distributors and even suppliers, making high profits for transfer costs, while Anta continues to make short statements denying it. Meanwhile, Anta sports shares hit a record high on Tuesday after five short reports.

On Sunday, the famous short selling agency Muddy Waters Research muddy water released fifth reports in half a month, accusing Anta sports of controlling the so-called independent third party distributors, but also controlling the so-called independent third party suppliers. It believed that Peng Qingqi, the biggest supplier of Anta sports, Henan real sports products Co., Ltd., is actually Anta sports related person.

At the same time, Peng Qingqi controlled Fujian Mobile Co., Ltd., through its subsidiaries Anta sharp and Jinjiang peak, operates Anta Tmall's two brands, Anta Anta ANTA and FILA, which are not in conformity with Anta sports's self operated e-commerce channel.

Muddy water also means that the Tmall Fay shop, which is operating in Fujian, is obviously not operated by Anta sports or Affiliated Companies. On the contrary, it is operated by a company controlled by its employees.

Like the third party report, the fifth reports are muddled by the same tactics.

On the 22 day of the afternoon, Anta sports regularly issued a clarification statement, which was exactly the same as the previous three times. In addition to the first short report, Anta sports emergency suspension, one after another refutation, the other four reports, Anta sports attitude is exactly the same.

On Monday, Anta sports (2020.HK) shares were also released in the same way as the previous second, third, fourth reports. They were not affected, and they rose 1.87% to HK $57.30 throughout the day, up 11.80% from the closing price of the first trading day after the first release of muddy water. The closing price of the last trading day before the muddy water attack was HK $55.30, or even 3.61%.

However, in July 8th, Anta sports first encountered muddy water sniping. On this trading day, Anta sports (2020.HK) shares fell 7.32% after the emergency suspension, and the intraday drop was close to 9%.

Muddy water has reported in its fourth reports that its sniper score is 11 wins and 3 losses, and its success rate is high. But in the two weeks of continuous muddy water sniping, why are Anta sports shares still strong?

No Agency analyst Tang Xiaotang said in a briefing on the investment intelligence of the fashion industry on Monday that the strong fundamentals of the sports industry and the strong performance of sporting goods stocks and the holding of China's qualified domestic institutional investors to sports stocks have led institutional investors and retail investors to continue to buy Anta sports, and muddy water questioned Anta's sports control distributors. If it is true, Anta sports can also control the distributors' agents through the form of Hong Kong stocks.

Why does not Anta share price fall?

After being attacked by muddy water at the beginning of the month, the agency issued 5 reports, accusing Anta of its financial problems, but Anta's stock price rose 10% in the past two weeks. Why?

First of all, the sports industry is the best category of Retailing in the past three years. Anta sports has enough support for "draught".

Second, the sports industry's peers, revenue, profits and share prices have been broken out in the past three years, and Anta has peer support.

Once again, QDII's two quarter heavy sports stocks will not run away like retail investors, at least until Anta's medium-term performance is withdrawn, or even support the stock price, so as to prepare for future reduction and clearance.

Besides, Chinese enterprises are becoming more and more efficient in dealing with short sniping.

In addition, Anta has a large market value, higher volume and higher turnover, and Hedging Short influence.

Finally, if the muddy water accusation is real, Anta controls the distributors, then Anta can also control the distributors' agents through the Hong Kong stock market.

After Monday, Anta sports released Ying Xi to try to respond to the allegations of muddy water.

Anta sports said that in the first half of 2019, the business profit of the group was not less than 50% compared with the same period of 2 billion 689 million yuan in the same period last year, and the increase in net profit was not less than 25% in the middle period of 2018 compared with 1 billion 945 million yuan in the middle of 2018.

Fujian sporting goods giant said that the sharp increase in profits was mainly due to the continued strong sales of Anta and other brands, the medium-term revenue growth of 35%, while operating profit increased.

Operating profit margins have always been an important index for short selling agencies to catch up with Anta sports. Anta sports said on Monday that the growth of the medium-term operating profit rate is mainly due to three aspects: the gross profit margin is higher than that of the high retail business, and the ratio of government subsidies and operating expenses in advance is relatively stable.

On Tuesday, Anta sports (2020.HK) shares surged 2.97% to HK $59 in the wake of Hei hee, then the highest jump of 4.62%, rising to HK $59.95, a record high. After a brief new high, its share price dived rapidly, closing to around 10:15 in Beijing, and the AM gain narrowed to around 2%.