In order to implement the spirit of the State Council’s Opinions on Accelerating the Development of Sports Industry to Promote Sports Consumption and the Overall Plan for Football Reform and Development in China, and promote the sustained and healthy development of football in China, the National Development and Reform Commission, the Office of the Inter-Ministerial Joint Conference on Football Reform and Development in the State Council (China Football Association), the General Administration of Sports and the Ministry of Education jointly compiled the Medium and Long-term Development Plan for Football in China (2016-2050), which was recently released and distributed to local governments for implementation.
In this regard, analysts pointed out that, except for the first time in the history of football in China, there is a long-term development plan with a clear time period, which shows that the country attaches great importance to the development of the football industry. Compared with last year’s plan, the plan is more detailed, and when these goals are specific to figures, it is a potential investment opportunity.
In this context, yesterday, the sports industry-related concept stocks changed, and the overall sector rose by 0.25 percentage points against the market. In terms of individual stocks, Shenzhen Huicheng had a strong daily limit, and citic guoan and Hangzhou Jiebai also rose by more than 5%, with 5.29% and 5.19% respectively.
In terms of capital flow, according to the statistics of the Securities Daily Market Research Center, yesterday, seven sports industry concept stocks became the target of capital pursuit, attracting a total of 180,159,200 yuan. Specifically, the net inflow of funds from citic guoan, Shenzhen Huicheng and Hangzhou Jiebai all exceeded 20 million yuan, which were 92,718,300 yuan, 43,414,300 yuan and 21,635,500 yuan respectively.
In fact, the continuous influx of capital in recent years has injected new vitality into the sports industry. 2016 is a big year for sports, and large-scale sports events such as the Olympic Games and the European Football Cup will be held, which is expected to set off a new round of sports boom. Insiders pointed out that the sports industry M&A funds are constantly emerging, and the capital fever of the industry will drive the change of business model. It is expected that companies with a market value of 10 billion yuan or even 100 billion yuan will be born around the sub-sectors of Super League football industry chain, sports events and venue operation, and sports marketing.
GF Securities said that the football policy dividend will be released at an accelerated pace, and the market value of the sports industry will be enhanced. The market value brought by sports reform will first be reflected in the football industry chain, and firm and orderly construction will create great commercial value; Investment opportunities in related sports industry chains are the long-term value restoration of the reform dividend release. Enterprises and listed companies that are deeply involved in various sports segments have obvious advantages, benefit the most, and are more likely to be sought after by market funds. It is suggested to pay attention to Lehman shares (deeply cultivating the football industry and having the right to develop the business of League A) and Chinese sports industry (with the strongest shareholder background and rich experience in event operation).
At the same time, Ping An Securities believes that the sports industry will usher in rapid growth during the economic transition period. As an emerging consumer sector focused on in 2016, the sports sector is also an important direction for the business transformation of listed companies. The triple factors of policy liberalization, capital inflow and consumption upgrading will bring unprecedented development opportunities for China sports industry.