Wanlian Securities: The sports event economy is thriving, with long-term focus on IP value revaluation.

Wanlian Securities: The sports event economy is thriving, with long-term focus on IP value revaluation. Wanlian Securities has released a research report stating that the sports event economy is at a historical window of triple resonance: consumption structure transition, policy dividends, and a turning point in business models. China's share of services consumption has recovered to pre-pandemic levels. The upgrading of consumption structure and the service-oriented transformation of the sports industry provide demand support and an industrial foundation for the development of the sports event economy. Benchmarking against mature overseas models, the commercialization of domestic sports events is expected to accelerate. China's sports events are on the eve of a shift from participation-fee underpinning to sponsorship and ticket revenue expansion. The report suggests focusing on three investment mainlines along the four-tier industrial chain structure: the core value layer, the upstream supply layer, and the downstream consumption layer. The main views of Wanlian Securities are as follows: Wanlian Securities: The sports event economy is thriving, with long-term focus on IP value revaluation. The sports event economy is at a historical window of triple resonance: consumption structure transition, policy dividends, and a turning point in business models. The share of services consumption continues to rise, approaching a structural critical point, with experiential consumption accelerating its penetration. The goal of the sports industry's total scale exceeding 7 trillion yuan by 2030 anchors the industry's growth mainline, and the sports event economy was listed as a core task in the 2026 Government Work Report. Benchmarking against overseas markets, China's leading events are on the eve of a shift from participation-fee underpinning to sponsorship and ticket revenue expansion, while global media rights are in a historic inflation cycle, providing a clear reference framework for the revaluation of domestic event IP. Along the four-tier industrial chain structure, three investment mainlines are recommended. (1) Core value layer: Event IP is the segment with the strongest pricing power and highest profitability in the industrial chain. Under the domestic pattern dominated by associations and local governments, enterprises that can obtain scarce IP operation authorizations are best positioned to realize policy and business model dividends first, with high growth elasticity. It is recommended to focus on event operators that have obtained core event operation rights and possess cross-category replication capabilities. (2) Upstream supply layer: The construction of the "15-minute fitness circle," the expansion of local leagues, and the construction and renovation of venues bring rigid orders for equipment and flooring leaders. Leading enterprises with professional event certification and integrated design, construction, and operation capabilities have stronger bargaining power and order acquisition capabilities in the high-end market, and overseas expansion brings performance increments. It is recommended to pay attention to the overseas expansion pace of segment leaders in venue materials and fitness equipment. (3) Downstream consumption layer: Periodic large-scale events strongly drive derivative consumption demand for beer, instant retail, and other products. With event cycles continuing, such as the Nagoya Asian Games, viewing parties, nighttime consumption, and instant delivery scenarios will continue to benefit. It is recommended to focus on the phased market performance of beer and beverages, functional drinks, and instant retail sectors deeply tied to event scenarios during major event cycles, while also paying attention to the release of brand momentum by leading sportswear companies during event marketing windows. The sports event economy is thriving, with policy foundations boosting scale expansion. China's share of services consumption has recovered to pre-pandemic levels. The upgrading of consumption structure and the service-oriented transformation of the sports industry provide demand support and an industrial foundation for the development of the sports event economy. Top-level policies continue to improve. The "15th Five-Year Plan for Building a Sports Power" establishes the sports event economy as one of the strategic cores of industrial development. Local governments actively introduce high-level events, cultivate local event brands, promote the expansion of event supply, and drive related consumption through "sports + culture and tourism," unleashing the multiplier effect of the sports event economy. Benchmarking against mature overseas models, domestic event commercialization is expected to accelerate. International leading events share common characteristics of "rights as the core, scarcity as the shield, and content as the wings," building diversified monetization systems based on scarce competitive resources and mature content operations. In comparison, domestic event rights development is still at an early stage, and the level of commercialization still has significant room for improvement. China's sports events are on the eve of a shift from participation-fee underpinning to sponsorship and ticket revenue expansion. With growing viewing demand, expanded brand sponsorship, and increased investment in streaming content, "ticket volume growth, sponsorship expansion, and rights breaking zero" are expected to drive the upgrading of event revenue structure and gradually release the commercial value of high-quality IP. Event expansion drives industrial chain demand, with different segments benefiting through distinct paths. Event operation scale expansion coexists with profitability constraints, and policy catalysis drives business extension toward high value-added commercial development. Venue operations rely on core locations and resource scarcity, improving operations through event-driven growth and efficiency enhancement of existing assets. Fitness equipment and venue materials benefit from facility construction and renewal demand, with overseas expansion contributing incremental growth. On the consumption side, sportswear leverages event marketing to enhance brand influence and sales conversion. Sports lottery shows high elasticity during major event cycles, with related service providers benefiting indirectly. Beer, functional drinks, and instant retail capture viewing, gathering, and nighttime consumption demand. Events catalyze high-end beer consumption, and scenario expansion drives growth in instant delivery orders. Risk factors: Risks of macroeconomic and consumption underperformance, risks of policy changes such as event approval and regulation, risks related to event scheduling and safety, risks of uncertainty in event IP authorization and renewal, and risks of event commercialization monetization underperforming expectations.