LSR(SZ:002858) Dongguan Securities·2025-10-30 11:08Investment Rating - The industry investment rating is "Standard" indicating that the industry index is expected to perform within ±10% of the market index over the next six months [64]. Core Insights - The global sports market is projected to reach $800 billion by 2033, driven by globalization, digitalization, and IP development in sports [2][9]. - The sports industry in China is rapidly developing, with a market size growing from 1.7 trillion yuan in 2015 to 3.67 trillion yuan in 2023, despite a temporary decline due to the pandemic [19][24]. - Sports events are becoming a new engine for economic growth and urban competition, with significant direct and social value [2][29]. - The commercialization potential of domestic sports is being released under supportive policies, with increasing public participation in sports activities [2][49]. Summary by Sections 1. Economic Potential of the Sports Industry - The global sports industry is expected to maintain a compound annual growth rate of 7% over the next decade, reaching $800 billion by 2033 [9]. - The sports industry has a significant multiplier effect on GDP and employment, as evidenced by the EU's sports sector contributing 3.4% to total GDP in 2019 [10][13]. 2. Sports Events Driving Industry Upgrade - Sports events are key to attracting consumer spending and amplifying the value of the sports industry, with a focus on enhancing public engagement and consumption [29][30]. - The integration of digital technology and branding in sports events is pushing the commercialization process forward, creating diverse revenue streams [30][34]. 3. Release of Commercialization Potential in Domestic Sports - The commercialization of sports events in China is accelerating, with a focus on mainstream sports like basketball and football, while other sports lag behind [49]. - Policies encouraging the development of sports events are being implemented, aiming to cultivate world-class sports enterprises and events by 2030 [55][56]. 4. Investment Strategy - The sports event industry is recognized as one of the most stable growth areas in consumption, with significant room for commercialization compared to Western markets [60]. - The report recommends focusing on Lisheng Sports (002858) as a potential investment opportunity [60][61].