Investment Rating - The report maintains a "Buy" rating for Anta Sports [4]. Core Views - Anta brand shows steady growth while FILA brand experiences short-term fluctuations in revenue. The overall performance of other brands is strong, indicating robust long-term growth potential [1][2]. Summary by Sections Anta Brand Performance - Anta brand revenue in Q3 2024 increased by a low single-digit percentage year-on-year, driven by strong e-commerce growth, which is expected to exceed 20% [1]. - The inventory turnover ratio is projected to remain healthy at 4-5, with stable discounts in offline channels and improved discounts in e-commerce [1]. - The brand is focused on optimizing product lines and enhancing operational efficiency across various sales channels [1]. FILA Brand Performance - FILA brand revenue in Q3 2024 decreased by a low single-digit percentage year-on-year due to a challenging consumer environment and ongoing adjustments in the business [1]. - The inventory turnover ratio for FILA is expected to approach 5, with minimal discount pressure at the terminal sales level [1]. - The brand aims to enhance its product and channel structure, focusing on professional products like golf and expanding its e-commerce presence [1]. Other Brands Performance - Other brands under Anta experienced a revenue growth of 45%-50% year-on-year in Q3 2024, benefiting from high-quality market segments and Anta's multi-brand operational capabilities [2]. Financial Projections - For 2024, the company is expected to achieve a revenue growth of 11% and a profit growth of 33%. Excluding a one-time non-cash gain of 1.6 billion, the profit growth is projected at 17% [2]. - The adjusted net profit forecasts for 2024-2026 are 13.61 billion, 13.83 billion, and 15.66 billion yuan, respectively, with a corresponding P/E ratio of 19 times for 2024 [2][3]. Financial Metrics - The company's revenue for 2024 is projected at 69.26 billion yuan, with a year-on-year growth rate of 11.1% [3]. - The net profit for 2024 is expected to be 13.61 billion yuan, reflecting a year-on-year growth rate of 33% [3]. - The earnings per share (EPS) for 2024 is projected to be 4.81 yuan [3].

Investment Rating - Maintain **Buy** rating with a revised target price of HK$107.84, up from HK$97.05, reflecting a 24.2% upside potential [2][3] - The new target price is based on a 20x FY25E P/E multiple, up from 18x, due to improved investor sentiment following central government stimulus measures [2] Core Views - The company's new retail formats, such as the "ANTA Super Store," "ANTA Champion Store," "ANTA SNEAKERVERSE," "ANTA Arena," and "ANTA Palace," are successfully driving growth and expanding the customer base [1] - The ANTA Super Store in Shenzhen, with a monthly sales estimate of RMB 1.5 million, outperforms regular ANTA stores, with annual sales per square meter reaching RMB 21,000, compared to RMB 16,000 for regular stores [6] - The company aims to open 10 ANTA Super Stores in FY24 and expand to 40 stores within three years, potentially contributing 2% to ANTA brand sales by FY26 [6] - The company's market segmentation strategy, including targeting mass-market, premium, and niche markets, is well-executed and supports future growth [1] Financial Performance - Revenue is expected to grow at a CAGR of 12% from FY23 to FY26E, with net profit growing at a CAGR of 16% [2] - FY24E revenue is projected at RMB 70.3 billion, with net profit of RMB 13.7 billion, representing a 12.8% YoY growth in revenue and 21.4% YoY growth in net profit [3][19] - FY25E revenue is forecasted at RMB 78.3 billion, with net profit of RMB 15.0 billion, reflecting an 11.4% YoY revenue growth and 9.7% YoY net profit growth [3][19] - FY26E revenue is expected to reach RMB 87.1 billion, with net profit of RMB 17.6 billion, indicating an 11.2% YoY revenue growth and 17.5% YoY net profit growth [3][19] Store Performance and Strategy - The ANTA Super Store in Shenzhen, with a floor area of 670 sqm (860 sqm including warehouse), achieves monthly sales exceeding RMB 1 million, with an average ticket size of RMB 330 [6] - The store offers a wide range of products, including training gear, professional sports, outdoor products, and sports culture, with approximately 1,000 SKUs [1] - The store's product mix differs from regular ANTA stores, with only 10% overlap in SKUs, and a higher proportion of evergreen products [1] - The company's strategy to attract new customers, particularly families and students, is successful, with over 90% of customers being first-time visitors to ANTA Group [6] Valuation and Peer Comparison - The company's FY25E P/E of 16x is below its 5-year historical average of 25x, indicating undervaluation [2] - The company's ROE is expected to remain strong, at 24.7% in FY26E, compared to 26.0% in FY21A [3][19] - Peer comparison shows ANTA Sports trading at a lower P/E multiple compared to some international brands like Nike and Adidas, which trade at higher multiples [17] Growth Drivers - The company's new retail formats and market segmentation strategy are key growth drivers, supported by strong execution and financial performance [1][6] - The ANTA Super Store model, with its high sales per square meter and attractive pricing, is expected to drive significant growth in the coming years [6] - The company's focus on expanding its customer base, particularly through family and student segments, is expected to contribute to long-term growth [6]

27 Sep 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Anta Sports (2020 HK) Takeaways from the Anta Superstore visit The Anta Superstore we visited is fairly competitive and should be a decent growth driver onwards, supported by its superior price to quality and great variety of choices. Moreover, it can also acquire more family-type customers, and it has reasonable room for store expansion and decent financials (both sales per store and sales per sq.m are better t ...

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 92.45 per share, based on a 20x PE multiple for 2024 [3][5] Core Views - The sportswear industry is resilient, with leading brands showing strong competitive advantages [3] - Anta Sports has maintained an average ROE of 26% over the past 5 years, driven by its excellent management team and strong channel capabilities [3] - The company's multi-brand and internationalization strategies are steadily progressing, with FILA contributing significantly to revenue and profitability [3][9] Industry Analysis - China's sportswear industry is expected to maintain steady growth, with significant room for expansion in per capita consumption and penetration rates [3][15] - The US sportswear market has recovered to pre-pandemic levels, with sports-related spending reaching 126% of pre-pandemic levels in 2024 [15] - China's sportswear penetration rate is 15%, significantly lower than developed countries like the US (36%) and Japan (21%) [18] - The industry is driven by national policies, economic development, and emerging segments such as skiing, outdoor activities, and women's sportswear [3][15] Company Analysis Financial Performance - Anta Sports' revenue is projected to grow from RMB 53.7 billion in 2022 to RMB 85.7 billion in 2026, with a CAGR of 10.7% [4] - EBITDA is expected to increase from RMB 12.5 billion in 2022 to RMB 27.1 billion in 2026 [4] - Net profit attributable to shareholders is forecasted to grow from RMB 7.6 billion in 2022 to RMB 15.3 billion in 2026 [4] - EPS is projected to rise from RMB 2.80 in 2022 to RMB 5.39 in 2026 [4] Brand Strategy - Anta's multi-brand strategy includes the main Anta brand, FILA, and other international brands like Descente and Kolon Sport [42] - FILA, acquired in 2009, has been repositioned as a high-end fashion sportswear brand, contributing significantly to the company's revenue and profitability [49][50] - The company is focusing on brand elevation for the Anta main brand, with DTC (Direct-to-Consumer) transformation driving efficiency and profitability [48] Channel Management - Anta has over 12,000 global offline stores, with the main Anta brand having 9,831 stores as of 2023 [45] - The company has been optimizing its distribution network and supply chain, with a focus on retail-oriented strategies to improve inventory management [40][46] - DTC transformation has been a key focus, with approximately 5,400 Anta main brand stores and 2,200 Anta Kids stores operating under the DTC model as of 2023 [48] Competitive Advantages - Anta's strong channel capabilities and efficient management have resulted in lower expense ratios and higher turnover rates compared to peers [54][56] - The company's average inventory turnover days are 118, lower than international peers, and its accounts receivable turnover days are 28, significantly better than industry averages [56][58] - Anta's ROE has consistently outperformed domestic and international peers, with a 5-year average ROE of 26.4% [30][32] Growth Drivers - The Anta main brand is expected to grow steadily, with revenue projected to increase from RMB 30.3 billion in 2023 to RMB 39.8 billion in 2026 [59][60] - FILA is expected to maintain high growth, with revenue projected to increase from RMB 25.1 billion in 2023 to RMB 30.6 billion in 2026 [59][60] - Other brands, including Descente and Kolon Sport, are expected to grow rapidly, with revenue projected to increase from RMB 6.9 billion in 2023 to RMB 15.3 billion in 2026 [59][60] Valuation and Investment Recommendation - The report values Anta Sports at a 20x PE multiple for 2024, based on its superior channel management and cost control capabilities [63] - The target price of HKD 92.45 per share represents a 21.3% upside from the current price of HKD 76.20 [5][63]

Financial Performance - Revenue increased by 13.8% to RMB 33.735 billion for the six months ended June 30, 2024[9]. - Net profit rose by 59.0% to RMB 8.419 billion, with a basic earnings per share of RMB 2.75, up 58.0%[6][9]. - Gross profit margin improved by 0.8 percentage points to 64.1%[6][9]. - Operating profit for Anta increased by 13.6% to RMB 8.660 billion[9]. - The company's revenue increased by 13.8% to RMB 33.74 billion for the first half of 2024, compared to RMB 29.65 billion in the same period of 2023[15]. - The overall gross profit margin rose by 0.8 percentage points to 64.1% from 63.3% year-on-year[15]. - The company declared an interim dividend of HKD 1.18 per share, a 43.9% increase compared to HKD 0.82 in the same period last year[16]. - Anta brand revenue grew by 13.5% to RMB 16.08 billion, with an operating profit margin of 21.8%[16]. - FILA brand revenue increased by 6.8% to RMB 13.06 billion, with a slight decline in operating profit margin to 28.6%[16]. - Other brands saw a significant revenue increase of 41.8% to RMB 4.60 billion, maintaining an operating profit margin of 29.9%[16]. - The average return on equity increased to 28.6% from 23.0% year-on-year[10]. - The average inventory turnover days improved to 114 days from 124 days year-on-year[10]. - The total comprehensive income for the period was RMB 9,475 million, compared to RMB 6,173 million in the same period last year, reflecting a 53.5% increase[128]. - Basic earnings per share for the period were RMB 2.75, compared to RMB 1.74 in the same period of 2023, indicating a 58.4% increase[128]. Market Expansion and Strategy - The company plans to continue expanding its brand portfolio and market presence, focusing on high-end sports products[3]. - The company is strategically increasing investment in e-commerce, which has been growing rapidly and outperforming major competitors in the industry[18]. - The company's "globalization" strategy is advancing, with a focus on expanding retail operations in Southeast Asia, North America, Europe, the Middle East, and Africa[19]. - Anta and Anta Children plan to expand their store types and retail channels, targeting 7,100 to 7,200 stores in mainland China and 2,800 to 2,900 stores overseas by the end of 2024[108]. - The company is leveraging multi-brand and supply chain advantages to develop new IP products, contributing to growth across various categories[104]. - The company is committed to optimizing store efficiency and online business penetration while maintaining a stable number of offline stores[108]. - FILA plans to open new store types in high-end commercial areas, including flagship stores and specialized stores for professional sports elites[105]. Research and Development - Research and development expenses as a percentage of revenue increased to 2.7%[9]. - The company has established R&D design studios in the US, Europe, Japan, and South Korea, collaborating with global research institutions and suppliers for innovation[19]. - The company continues to innovate in product development, focusing on high-quality, technology-driven sports equipment for children across various sports scenarios[28]. - Anta Sports launched core technologies and products such as Anta Membrane, Soft Heart Yarn, and C10 Pro during the fiscal period[34]. - The company has implemented AI technology in product design and live streaming to enhance consumer experience and improve conversion rates[34]. Sustainability and ESG Efforts - The company has committed to reducing absolute greenhouse gas emissions by 42.0% for Scope 1 and 2, and 51.6% for Scope 3 by 2030, using 2022 as the base year[36]. - Over 140 suppliers have been encouraged to use clean and renewable energy, and a carbon data management system has been established[36]. - The company has been recognized for its ESG efforts, leading the sports goods industry in China[36]. Challenges and Risks - The company faces significant risks related to technological advancements and product innovation, which could adversely affect its operations if it fails to adapt[43]. - Intense competition in the domestic sports footwear and apparel industry is shifting from quantity and price to new technologies and high-value products, potentially impacting future revenue and profitability[46]. - Rising costs associated with physical retail operations, including rent and employee expenses, may reduce profitability for the company and its distributors[52]. - Brand reputation is at risk if there are any lapses in quality control, which could lead to product quality issues and negatively impact sales and brand image[57]. - Supply chain management is critical, as any issues with suppliers regarding material quality or delivery could adversely affect the company's operations[58]. Financial Position and Assets - The group’s total assets amounted to RMB 97,178 million as of June 30, 2024, with current assets at RMB 43,527 million[91]. - The group declared an interim dividend of HKD 1.18 per share, totaling RMB 3,079 million, which is 50.1% of the profit attributable to shareholders[83]. - The total liabilities amounted to RMB 36,218 million, compared to RMB 34,000 million in the previous year, reflecting an increase in financial obligations[142]. - The total equity attributable to shareholders increased to RMB 57,306 million as of June 30, 2024, representing a growth of 11.29% from RMB 51,460 million as of December 31, 2023[133]. - The company reported a significant increase in inventory costs to RMB 12,117 million, up from RMB 10,890 million in 2023, indicating higher production and sales activities[144]. E-commerce and Digital Strategy - E-commerce business contributed 33.8% to the overall revenue of the group, up from 30.8% in the same period of 2023, with an absolute growth of 25.1% year-on-year[24]. - The company has established a direct-to-consumer (DTC) model in over 80% of its stores, with approximately 5,600 Anta stores and 2,300 Anta Kids stores, where 42% and 64% respectively are directly operated[26]. - Anta's e-commerce strategy includes establishing flagship and specialty stores on emerging platforms, enhancing brand visibility through collaborations with well-known e-commerce IPs[26]. Product Development and Innovation - Anta Sports has expanded its professional running shoe matrix, launching the C202 5th generation Lite and the Mah 4, enhancing performance through upgraded technologies[25][26]. - FILA launched new products including the "柔雲" running shoes and "山貓" trail running shoes, establishing a preliminary market position in the running shoe segment[29]. - DESCENTE emphasizes technological innovation and professional quality, launching products like the GOLF CONDOR shoes and Double Chill tops to strengthen its position in the golf market[31]. - KOLON SPORT has expanded its product matrix around camping and hiking, introducing high-performance outdoor apparel like the GAIA jacket and MOVE ALPHA hiking shoes[33]. Community Engagement and Social Responsibility - The company has trained over 6,800 sports teachers and built 185 Anta Dream Centers, benefiting over 7.2 million youth[37]. - The company has not recognized withholding tax liabilities of RMB 853 million on the undistributed retained earnings due to the established dividend policy for its subsidiaries in mainland China[195].

[Table_MainInfo] 公司研究/纺织与服装/服装与奢侈品 证券研究报告 [Table_StockInfo] 9 月 4 日收盘价（港元） 75.00 股票数据 52 周股价波动（港元） 59.45-94.8 24H1 主业净利率创新高，Amer 盈利能力大幅提升。24H1 收入同比增 13.8% 至 337.4 亿元，毛利率提升 0.8pct 至 64.1%，归母净利润增 62.6%至 77.2 亿元， 归母净利率提升6.9pct至22.9%。我们判断收入增长主因：①电商收入增25.1%， ②安踏、FILA 功能性产品、鞋履产品增加③DTC 模式（安踏牌）和直营零售（FILA 及其他品牌）提升店效、改善折扣④高端户外运动赛道持续向好。归母净利润 高增主因：①Amer Sports 上市相关一次性会计利得 15.8 亿元，②分占联营公 司亏损减少 5 亿元。撇除 Amer Sports 上市利得及分占联营/合营公司损益影响， 归母净利润同比增 17%至 61.6 亿元，归母净利率同比提升 0.5pct 至 18.3%。鞋 履品类领增，鞋/服/配饰收入同比增 18%/10.8%/10.1%。 总股本（ ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 102.0 HKD, representing a potential upside of 32.8% from the current price of 76.8 HKD [1][2]. Core Insights - The company reported a significant year-on-year increase in net profit attributable to shareholders of 62.6%, reaching 7.72 billion RMB in the first half of 2024, alongside a robust revenue growth of 13.8% to 33.74 billion RMB [1]. - The gross margin improved by 0.8 percentage points to 64.1%, driven by the performance of the Anta main brand and Fila [1]. - The company announced a share repurchase plan of 10 billion RMB over the next 18 months to enhance market confidence [1]. Financial Performance Summary - **Revenue**: The company achieved a revenue of 33.74 billion RMB in H1 2024, up 13.8% year-on-year [1]. - **Net Profit**: The net profit attributable to shareholders increased by 62.6% to 7.72 billion RMB, with core net profit rising 17.0% to 6.16 billion RMB [1]. - **Gross Margin**: The gross margin rose to 64.1%, reflecting a 0.8 percentage point increase [1]. - **Operating Profit**: Operating profit grew by 13.6% to 8.66 billion RMB, maintaining an operating margin of 25.7% [1]. - **Free Cash Flow**: The company generated free cash flow of 7.62 billion RMB [1]. - **Net Cash Position**: The net cash position increased significantly to 32.39 billion RMB [1]. Brand Performance - **Anta Main Brand**: Revenue for the Anta main brand grew by 13.5% to 16.1 billion RMB, benefiting from strong e-commerce growth and product effectiveness [1]. - **FILA Brand**: Revenue for the FILA brand increased by 6.8% to 13.01 billion RMB, with growth driven primarily by bulk sales [1]. - **Other Brands**: Other brands saw a revenue increase of 41.8% to 4.6 billion RMB, with DESCENTE and KOLON leading the growth [1]. Future Outlook - The company expects double-digit growth for the Anta brand in 2024, while the FILA brand's growth forecast has been adjusted to high single digits [1]. - The operating profit margins for the Anta and FILA brands are projected to be around 20% and 25%, respectively [1].

2024 年 9 月 2 日 安踏体育（2020.HK） 业绩超预期达成，大额回购彰显信心 事件：安踏体育公布 24H1 业绩，收入同增 13.8%至 337 亿元，股东应占溢利 （不包括 JV 影响）同增 17.0%至 61.6 亿元，股东应占溢利（包括 JV 影响）同 增 62.6%至 77.2 亿元。综合考虑，我们预测 2024-2026 年 EPS 为 4.35/4.97 /5.53 元，给予 2024 年 25 倍 PE，目标价 118 港元，维持"买入"评级。 报告摘要 业绩表现超预期，回购+高派息彰显管理层信心 上半年消费环境充满挑战，公 司旗下多品牌仍保持强劲的竞争力，实现高质量增长。24H1 公司收入同比增长 13.8%至337亿元，剔除JV影响的股东应占溢利为61.6亿元，同比增长17.0%， 包含 JV 影响的股东应占溢利为 77.2 亿元（其中包含 Amer 成功上市带来一笔一 次性非现金利得约 16 亿），同比增长 62.6%，整体表现好于市场预期。管理层 宣布回购计划，未来 18 月内拟回购不超过 100 亿港元，同时宣布派发中期股息 118 港仙/股，派息率 50.1%，充分体现 ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 102 HKD based on a 19x PE valuation for 2024 [2][3][6]. Core Insights - The company reported a revenue of 33.74 billion, a year-on-year increase of 13.8%, and a net profit attributable to shareholders of 7.72 billion, up 62.6%. Excluding the impact of joint ventures and the gain from Amer's listing, the net profit was 6.16 billion, reflecting a 17% year-on-year growth [1][6]. - Anta's main brand saw revenue growth of 13.5% to 16.08 billion, with direct-to-consumer (DTC) and online sales growing by 10.5% and 20.1%, respectively. The company opened 73 new stores, bringing the total to 9,904 [1][6]. - FILA brand revenue increased by 6.8% to 13.06 billion, with a gross margin improvement to 70.2%. The operating profit margin decreased slightly to 28.6% due to increased advertising expenses [1][6]. - Other brands achieved a revenue of 4.6 billion, a significant year-on-year growth of 41.8%, maintaining a high operating profit margin of 29.9% [1][6]. - The company announced a share buyback plan of up to 10 billion HKD over 18 months, indicating confidence in future operations [1][6]. Financial Summary - The company expects earnings per share (EPS) for 2024, 2025, and 2026 to be 4.91, 5.04, and 5.80 CNY, respectively [2][6]. - Revenue projections for 2024-2026 are 70.11 billion, 78.32 billion, and 87.19 billion CNY, with year-on-year growth rates of 12.4%, 11.7%, and 11.3% [5][6]. - The gross margin is projected to improve from 62.6% in 2023 to 63.2% in 2024, while the net profit margin is expected to rise from 16.4% to 19.8% [5][6].

Investment Rating - The investment rating for the company is "Buy" with a target price set at 76.8 HKD, maintaining the rating for the next six months [8]. Core Insights - The company reported a revenue of 33.7 billion HKD for the first half of 2024, representing a year-on-year increase of 13.8%, with a net profit attributable to shareholders of 6.16 billion HKD, up 17% [1]. - The board declared an interim dividend of 1.18 HKD per share, a 43.9% increase year-on-year, with dividends accounting for 50.1% of net profit [1]. - The company plans to repurchase up to 10 billion HKD of its shares over the next 18 months, which will be canceled to enhance shareholder returns [1]. Financial Performance - The overall gross margin for the company was 64.1%, an increase of 0.8 percentage points year-on-year [2]. - The operating profit margin (OPM) remained stable at 25.7%, with the net profit margin at 18.3%, reflecting a 0.5 percentage point increase [2]. - Advertising and promotional expenses accounted for 7.5% of total revenue, showing a slight increase of 0.4 percentage points [2]. Brand and Market Expansion - The company actively expanded its online platforms, achieving a 25.1% increase in e-commerce revenue, which now represents 33.8% of total revenue [3]. - The company maintained a steady expansion of physical stores, with a net increase of 20 stores for the main brand and 53 for the children's line [3]. - The company is enhancing its product matrix in running and basketball categories, launching new products to meet diverse consumer needs [4]. Brand Positioning - FILA is focusing on a blend of professional and fashionable sports image, with strong sales in functional products [5]. - The outdoor brand, Descente, is creating differentiated product matrices and enhancing brand communication to penetrate high-end markets [6].