Anta Shoes 10 Million Sales

Anta's sales of shoes, including children and life series, reached 10 million 200 thousand pairs in the first quarter, an annual increase of 8.1%.

Opinion commentary: the company's first quarter business data is in line with expectations.

Sales growth in the first quarter was mainly driven by quantity. We expect that the average selling price of footwear and clothing will increase.

Company management also mentioned that the execution rate of orders was good in the first quarter, but the volume of supplementary orders was not large.

We believe that sales growth in the first quarter is close to 18% of the company's 1Q10 orders will grow.

Orders for companies 2Q10 and 3Q10 will grow by 16% and 18% respectively.

As of March 31, 2010, Anta brand retail outlets were 6727.

It is not difficult to achieve the goal of 7200 stores at the end of the year.

Investment recommendations: the company's first quarter business data is in line with expectations.

We will attend the 4Q10 ordering meeting of the company in Jinjiang in May 6th.

We will review the profit forecast after the growth of the 4Q10 order.

We have a positive view of Anta's profit growth and maintain HK $13.9 mark price and collection rating for the time being.

Investors are advised to bargain for collection.