Investment 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].

Investment Rating - The report maintains a "Recommend" rating for the company with a target price of 27.1 CNY per share [2][9]. Core Insights - In 2024, the company reported revenues of 1.3 billion CNY, a decline of 10.4% year-on-year, with a net profit attributable to shareholders of 84 million CNY, down 21.6% [2][5]. - For Q1 2025, the company achieved revenues of 330 million CNY, a decrease of 6.1% year-on-year, with a net profit of 30 million CNY, down 2.7% [2][5]. - The company plans to distribute a cash dividend of 6.5 CNY per 10 shares, resulting in a dividend payout ratio of 72% [2]. Financial Performance Summary - **2024 Financials**: - Total revenue: 1,304 million CNY - Net profit: 84 million CNY - Earnings per share: 0.90 CNY - Gross margin: 28.48% [5][10] - **2025-2027 Projections**: - Expected revenue growth: 3.1% in 2025, 7.8% in 2026, and 10.7% in 2027 - Projected net profit: 93 million CNY in 2025, 106 million CNY in 2026, and 124 million CNY in 2027 [5][10]. Business Segment Analysis - **Self-owned Brand Performance**: - In 2024, self-owned brands generated 774 million CNY in revenue, down 16.43% year-on-year, with a gross margin of 29.82% [2][9]. - **OEM/ODM Business**: - The OEM/ODM segment reported revenues of 529 million CNY in 2024, a slight decline of 0.03% [2][9]. Market Position and Outlook - The company is positioned as a leader in the camping equipment sector and is expected to benefit from the increasing demand in the outdoor industry [2][9]. - The global production capacity is well-established, allowing the company to capture opportunities from customer order relocations [2][9].