Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q2 2025 operational data shows that the main brand achieved low single-digit growth, while FILA and other brands recorded mid to high single-digit growth [2][3] - The report anticipates high single-digit growth for the main brand and mid single-digit growth for FILA in 2025, with KOLON and DESCENTE expected to grow by 30% [4] - The report highlights the potential for KOLON and DESCENTE to enhance their market share and product competitiveness due to favorable outdoor market conditions [4] Summary by Sections Event Overview - In Q2 2025, the main brand, FILA, and other brands recorded low single-digit, mid single-digit, and 50-55% growth respectively [2] - For H1 2025, retail sales for Anta, FILA, and other brands showed mid single-digit, high single-digit, and 60-65% growth year-on-year [2] Analysis and Judgment - The main brand's growth in Q2 2025 slowed compared to Q1 2025 and Q2 2024, attributed to a slowdown in both online and offline sales [3] - FILA's growth in Q2 2025 was driven by improvements in children's and trendy brands, although it showed a slight slowdown compared to Q1 2025 [3] - Other brands like DESCENTE, KOLON, and MAIA experienced 50-55% growth in Q2 2025, which is a decrease from Q1 2025 but an improvement from Q2 2024 [3] Investment Recommendations - The report projects revenue forecasts of 770 billion, 859 billion, and 960 billion for 2025, 2026, and 2027 respectively, with net profit estimates of 138.74 billion, 159.07 billion, and 178.76 billion for the same years [4] - The report maintains EPS forecasts of 4.94, 5.67, and 6.37 for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 17, 15, and 13 [4]

Group 1 - Anta Sports Products Co., Ltd. reported a low single-digit positive growth in retail sales for its main brand in Q2 2025 compared to the same period in 2024 [1] - FILA brand products achieved a mid-single-digit positive growth in retail sales compared to the same period in 2024 [1] - Other brands (excluding those added after April 1, 2025) saw a significant retail sales growth of 50% to 55% compared to the same period in 2024 [1] Group 2 - In the first half of 2025, Anta brand products recorded a mid-single-digit positive growth in retail sales compared to the same period in 2024 [1] - FILA brand products achieved a high single-digit positive growth in retail sales compared to the same period in 2024 [1] - Other brands experienced a retail sales growth of 60% to 65% compared to the same period in 2024 [1] Group 3 - Anta is diversifying its brand strategy through a "thousand stores, thousand faces" approach, optimizing channel quality and covering various market segments [2] - The company has introduced various types of offline stores to cater to different consumer groups and shopping environments, enhancing its offline channel [2] - Anta's e-commerce business is increasingly contributing to the group's revenue growth, becoming a key growth engine [2] Group 4 - Anta maintains a multi-brand and global strategy, with the outdoor segment contributing to incremental growth [3] - FILA, as the second-largest brand, focuses on high-end sports fashion while investing in functional products and exploring new sports markets [3] - The acquisition of the Wolf Paw brand extends Anta's outdoor product line from high-end to mass market, enhancing competitiveness in the outdoor sports sector [3]

Core Insights - The rising demand for specialized running shoes among teenagers is driven by the need to improve physical fitness test scores for middle school entrance exams [1][2][3] - The market for youth running shoes is evolving into more segmented categories, including "test shoes," "arch support shoes," and "campus daily shoes" [1][5][6] - Major sports brands are responding to this trend by developing products specifically designed for the youth segment, focusing on performance and functionality [7][8] Market Trends - The popularity of carbon plate running shoes has surged among middle and primary school students, leading to a phenomenon of "equipment competition" in schools [2][3] - Brands like Anta, FILA, and Li Ning are launching products tailored for physical tests, with Anta's Maher series being a notable example, achieving sales of 500 million yuan in 2024 [3][8] - The youth sports market is projected to grow significantly, with a forecasted compound annual growth rate of 10.47% from 2024 to 2030, reaching a market size of 98.91 billion yuan in China by 2024 [8] Product Development - Brands are shifting their focus from lightweight, everyday training shoes to functional running shoes that enhance speed and cater to specific scenarios [7][8] - There is a lack of dedicated youth product lines among major brands, as they often rely on adult and children's lines to meet the needs of the adolescent demographic [4][8] - Future product strategies will likely include professional validation of functionality, age-specific designs, and integrated product systems that combine shoes with protective gear and training apps [8]

Group 1 - The 2025 Forbes China Best CEO list has been released, with Anta Group's Executive Director and Co-CEO, Lai Shixian, being the only CEO from the sports goods industry to be included after being recognized in 2024 [1][3] - The Forbes China Best CEO list has been published since 2005, evaluating thousands of companies' CEOs based on financial performance indicators such as market capitalization, stock price fluctuations, net profit, growth rates, and return on equity [3] - In the 2024 evaluation, the committee particularly focused on the company's performance over the past two years, with Anta Group's revenue increasing by 16.2% to 62.356 billion RMB in 2023 and exceeding 70.8 billion RMB in 2024, marking a 13.6% year-on-year growth [3][4] Group 2 - Anta Group has maintained its position as the leading sports goods company in China for 13 consecutive years and has been ranked first across all industries in the Chinese market for three years [3] - In 2024, Anta Group achieved a market share of 23% in the Chinese sports footwear and apparel market, making it the industry leader [3] - The company has invested a total of 20 billion RMB in innovation-related expenditures over the past decade and plans to invest another 20 billion RMB in the next five years to enhance consumer experience [4]

Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel sector, including Shenzhou International, Anta Sports, and Bosideng, among others [8][30]. Core Views - The apparel manufacturing sector shows signs of recovery with June 2025 revenue reports indicating a mixed performance among companies, but overall steady growth year-to-date [1][11]. - Vietnam's apparel exports have seen rapid growth in 2025, while China's related product exports have remained stable [1][17]. - The report emphasizes the importance of focusing on companies with strong fundamentals and brand strength, particularly in the outdoor and running segments, which are expected to expand [2][30]. Summary by Sections Recent Revenue Reports - In June 2025, revenue changes for key companies were as follows: Feng Tai Enterprises -3.1%, Yu Yuan Group +9.4%, and Ru Hong -3.3%. For the first half of 2025, cumulative revenues were -4.1%, +6.2%, and +10.8% respectively [1][11]. - The report suggests that the apparel manufacturing sector's output has normalized in Q2 2025, with a recommendation to monitor future order trends [1][30]. Industry Trends - The report highlights that the apparel manufacturing sector is benefiting from tariff policy changes, which may enhance company valuations in the short term [3][30]. - The report notes that the international trade environment and tariff changes could impact the competitive landscape of the industry [11][25]. Key Company Recommendations - Shenzhou International is recommended for its high valuation attractiveness, with a projected PE of 12 times for 2025 [30]. - Huayi Group is noted for its expanding overseas capacity and is expected to see revenue growth of 10% to 15% in Q2 2025, despite potential pressure on profit margins [30]. - Weixing Co. is expected to face challenges with a projected revenue decline of 10% to 15% in Q2 2025 due to cautious order placements from brand clients [30][31]. Market Performance - The textile and apparel sector has outperformed the broader market, with a notable increase in exports from Vietnam and stable performance from Chinese exports [1][4]. - The report indicates that the demand for functional apparel and jewelry brands remains strong, with a focus on companies that can leverage product differentiation and brand strength [2][3].

Investment Rating - The report maintains a "Positive" outlook on the textile and apparel industry, highlighting the potential for growth driven by domestic demand recovery and new growth directions [2]. Core Insights - The textile and apparel sector has shown a mild recovery in domestic consumption, with expectations for acceleration in the second half of 2025. The report emphasizes the importance of adapting to new consumer trends and market dynamics [11][13]. - Recent trade agreements, particularly between the US and Vietnam, are expected to impact the competitive landscape, favoring manufacturers with strong local supply chains [9][10]. - The report identifies key investment opportunities in various segments, including sports and outdoor brands, home textiles, and children's apparel, suggesting a focus on companies that can leverage e-commerce and brand strength [11][12]. Summary by Sections Industry Performance - From July 4 to July 11, the SW textile and apparel index increased by 1.6%, aligning with the SW All A index. The SW apparel and home textiles index rose by 1.7%, while the SW textile manufacturing index saw a 2.3% increase [3][4]. Recent Industry Data - Retail sales for clothing, shoes, and textiles totaled 613.8 billion yuan from January to May, reflecting a year-on-year growth of 3.3%. Textile and apparel exports reached 116.67 billion USD during the same period, marking a 1.0% increase year-on-year [3][32]. - Cotton prices have shown mixed trends, with domestic cotton prices rising slightly while international prices have decreased [34]. Market Trends - The report notes a significant disparity in textile exports between Vietnam and China, with Vietnam's textile exports growing by 13.5% year-on-year in June, indicating a potential shift in market dynamics [9][11]. - The apparel market is experiencing a K-shaped recovery, with high-end and cost-effective segments performing well, while many brands in the children's and women's apparel categories continue to face challenges [11][12]. Investment Recommendations - The report recommends focusing on companies with strong brand recognition and e-commerce capabilities, such as Anta Sports, Bosideng, and others in the textile manufacturing sector like Shenzhou International and Huayi Group [11][12].

Core Insights - Anta Group and He Min Foundation released the "He Min Family Letter: 2021-2024 Annual Report," detailing their philanthropic efforts and achievements over the past three years [1] - The foundation, established with a donation of 10 billion yuan from Anta's founder's family, focuses on healthcare, sports education, community care, and rural revitalization [1] Philanthropic Contributions - As of 2024, He Min Foundation has donated over 650 million yuan, with 550 million yuan allocated to healthcare, 45.53 million yuan to sports and education, and 56.26 million yuan to community care [1] - The foundation plans to donate 1.13 billion yuan in 2025, emphasizing healthcare infrastructure, athlete support, and community assistance [3] Healthcare Initiatives - He Min Foundation is committed to healthcare, responding to the "Healthy China" strategy by donating 2 billion yuan to build a non-profit public hospital in Shanghai, expected to be completed by the end of 2025 [1] - The foundation established the "Medical Care Fund," donating medical equipment worth 20 million yuan, benefiting over 65,000 people [2] Educational Support - The foundation has provided comprehensive educational support, including the "He Min Scholarship" program, which has funded 1,114 students with a total of 17.78 million yuan since 2022 [2] - In collaboration with Anta Group, the foundation donated 50 million yuan to establish the "Anta Robust Public Education Fund" at Xiamen University, benefiting 1,464 students and staff with 10 million yuan in aid [2] Community and Elderly Care - The foundation has engaged in rural revitalization efforts, donating 2.41 million yuan to improve facilities in rural areas and supporting autism care with a donation of 20 million yuan to the Quanzhou Autism Care Fund [3] - The foundation has provided assistance to over 35,000 elderly individuals, distributing 17.64 million yuan in aid [3]

Group 1 - The Chinese sportswear market, particularly the yoga apparel segment, is experiencing intense competition, with significant market entries and acquisitions, such as the acquisition of Sweaty Betty by Baozun [1] - The yoga apparel market in China is projected to exceed 80 billion yuan by the end of 2024, with a compound annual growth rate (CAGR) of over 15% [1] - Lululemon reported a global net revenue of $2.4 billion for Q3 of fiscal year 2024, with a nearly 40% year-on-year growth in the Chinese market, reaching $318 million [1] Group 2 - Domestic brands like Anta, Li Ning, and Xtep are emerging as new forces in the yoga apparel market, focusing on multi-scenario designs and gaining market share [1] - MAIA ACTIVE, acquired by Anta, is concentrating on yoga products and has seen significant growth in its young consumer base, with 68% of sales coming from the 25-35 age group [2] - The future of the yoga market will hinge on understanding female consumer needs, as brands that can effectively cater to these demands will gain a competitive edge [2]

Investment Rating - The report maintains a "Buy" rating for Anta Sports Products with a target price of HK$117, based on a 21x 2027E PE discounted back to 2025E, implying a 26% upside from the current price [2][30][22]. Core Insights - Anta Group's performance in June was mixed, with solid group-level topline growth driven by smaller brands and Fila, while the core Anta brand missed expectations. The projected retail sales growth for Anta is expected to decelerate to low single digits (LSD%) year-over-year in 2Q25, while Fila is anticipated to achieve high single digits (HSD%) growth [1][2][21]. - For 1H25, the report projects a 13% year-over-year increase in group sales to RMB 38.2 billion, with smaller brands and Fila performing ahead of the full-year guidance, despite a weaker core performance from Anta [1][3][21]. - The report anticipates a reported net profit of RMB 6.85 billion for Anta Group in 1H25, reflecting an 11% year-over-year decline, but a 12% increase in recurring net profit when excluding non-cash gains from the Amer listing [20][21]. Summary by Sections Sales and Growth Projections - Anta Group is expected to achieve a 13% year-over-year sales growth in 1H25, with specific brand growth rates projected as follows: Anta at 5.5%, Fila at 8.4%, Descente at 44%, and other brands at 69% [3][24][27]. - The gross profit margin (GPM) is projected to contract for Anta and Fila by -0.6 percentage points and -3.7 percentage points year-over-year, respectively, while GPM for smaller brands is expected to remain largely flat [3][20]. Financial Forecasts - The net income forecast for 2025-2027 remains broadly unchanged, reflecting a better outlook for Fila and smaller brands, despite a lower gross profit margin [2][22]. - The report includes detailed financial projections for revenue, EBITDA, and EPS for the years 2025 to 2027, with total revenue expected to reach RMB 80.4 billion in 2025, RMB 89.2 billion in 2026, and RMB 97.8 billion in 2027 [7][29]. Operational Metrics - The report highlights operational metrics such as operating profit margin (OPM) for Anta at 18% and for Fila at 23% in 1H25, with expectations of margin contraction due to lower gross profit margins [20][24]. - The anticipated operating expenses for 1H25 are projected to grow by 13.3%, while operating income is expected to grow by 7.5% [24][27].

Core Viewpoint - Macquarie's research report indicates that Anta Sports is likely to gain market share as Nike continues to adjust in China, with expectations of a narrowing revenue decline for Nike in the upcoming fiscal quarter [1][2]. Group 1: Nike's Financial Performance - Nike's revenue for Q4 FY2025 decreased by 11% year-over-year, exceeding FactSet's expectation of a 3.4% decline, with regional revenues in North America, Europe-Middle East-Africa, Greater China, and Asia-Pacific-Latin America showing declines of -11%, -10%, -20%, and -3% respectively [1][2]. - Management anticipates a moderate single-digit decline in revenue for Q1 FY2026, with gross margins expected to decrease by 350-425 basis points, including a 100 basis point negative impact from tariffs [2][3]. - Inventory levels remained high, with a year-over-year change of 0% in Q4 FY2025, while Nike plans to continue reducing inventory over the next two quarters [2][3]. Group 2: Market Dynamics and Competitive Landscape - Anta Sports is expected to benefit from Nike's market adjustments, potentially gaining market share as Nike's direct business in Greater China saw a 15% year-over-year revenue decline [1][3]. - The wholesale revenue for Nike in Greater China decreased by 24%, which may alleviate pressure on retailers like Topsports [3]. - The competitive landscape is intensifying as international brands increase efforts to regain market share, leading to more frequent promotional activities due to slower-than-expected inventory clearance [7]. Group 3: Supply Chain and Cost Management - Nike is implementing strategies to mitigate approximately $1 billion in incremental tariff costs by optimizing procurement and production distribution, aiming to reduce imports from China to the U.S. from 16% to a high single-digit percentage by the end of FY2026 [2][3]. - Collaboration with suppliers and retail partners is planned to minimize the impact of rising costs on consumers, with price increases phased in starting from Fall 2025 [2][3]. Group 4: Stock Recommendations - Anta Sports (2020 HK) is rated as outperform with a target price of 132 HKD, while companies like Feng Tay (9910 TT) and Stella (1836 HK) are rated underperform [5][6]. - The report highlights that despite ongoing revenue challenges for Nike in China, improved inventory management is expected to benefit Topsports (6110 HK) [5].