This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Team China Is Scoring Contracts at Soccer's World Cup, Not Goals

Stocks in this article: YGE MCD JNJ CTTAY

BEIJING (TheStreet) -- China is sending an army of toy armadillos but not a single soccer player to Brazil for this summer's FIFA World Cup tournament.

So among the only fans cheering China during the month-long sporting colossus, which starts next week, will be the country's biggest manufacturers of stuffed animals, solar panels and outdoor stadium display screens.

Almost every toy and trinket bearing the likeness of the World Cup's mascot, a pointy-nosed armadillo named Fuleco, has been made in China.

Chinese manufacturers of construction equipment and railroad cars are likewise applauding contracts they won for public infrastructure projects tied to the World Cup and the upcoming 2016 Summer Olympics to be held in Rio De Janeiro. Brazil has been spending billions to prepare stadiums and transportation systems for these events.

Team China's most prominent star is solar panel manufacturer Yingli Green Energy (YGE), a supplier of sun-powered lighting for stadiums and parking lots at World Cup venues. It's the only Chinese company on the event's list of corporate sponsors, which also includes McDonald's (MCD), Johnson & Johnson (JNJ) and Continental Tire (CTTAY).

TV viewers will see Yingli's logo splashed across advertising banners that line the playing fields. Higher up, about 1,500 of its solar modules can be seen ringing the top of the Estadio do Maracana stadium, which will host the championship match. Another venue for the games, Arena Pernambuco, is getting power from a local utility's solar farm recently built by Yingli.

A supplier contract for mascot products including Fuleco stuffed toys, figurines, slippers, car accessories, key chains and paper plates was awarded to Kayford Holdings, a Hong Kong subsidiary of the China state-owned conglomerate Landward Industrial. Landward's factories are near Shanghai in Zhejiang Province.

Landward expects this year's profits will beat what mascot manufacturers earned from past World Cup events, a company official named Li Hong recently told state media. "We can set the price ourselves," he said. A stuffed Fuleco "toy is priced at US$12.99, which means our profits will double or even triple."

Back in 2010, Chinese suppliers complained of low profits from sales of the vuvuzela horns popular among fans at that year's World Cup in South Africa. Now, according to one state media report, "Chinese companies have pricing power, and profits can be higher."

Another state company profiting from World Cup contracts is Chip Optech, which manufactured and installed four, huge LED display screens for soccer fan viewing inside Brasilia National Stadium, also called Estadio Nacional Mane Garrincha, in Brazil's capital.

In announcing the contract, the Shenzhen-based manufacturer called the screens "not only the pride of the company but of the Chinese people," and proving that China is no longer "the sick man of Asia."

Business victories aside, China will have to wait another four years for a chance to field a football club at a World Cup. Its team failed to qualify for this year's event after losing to Jordan in 2012. Team China has played in a World Cup tournament only once, in 2002, and was knocked out in the first round.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read more: The World Cup Is an Absolute Money Pit

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs