Core Viewpoint - Anta Sports achieved a revenue of 38.54 billion yuan in H1 2025, representing a year-on-year increase of 14.3%, with a net profit of 7.03 billion yuan, also up by 14.5%, exceeding expectations [1][2] Group 1: Financial Performance - The company plans to distribute a mid-term dividend of 3.53 billion yuan, with a payout ratio of 50% [1] - Anta's operating profit margin (OPM) reached 26.3%, an increase of 0.6 percentage points year-on-year [1] - The revenue breakdown for H1 2025 shows Anta brand at 16.9 billion yuan (+5%), FILA at 14.2 billion yuan (+9%), and other brands at 7.4 billion yuan (+61%) [1] Group 2: Brand Performance - FILA and outdoor brands showed strong performance, with FILA's new CEO enhancing brand and retail channel strategies [1][2] - Descente and Kolon maintained high-quality growth due to favorable market conditions and refined operations [1] Group 3: Margin Analysis - Gross profit margins (GPM) for Anta and FILA decreased by 1.7 percentage points and 2.2 percentage points respectively, attributed to increased costs in professional categories and a higher proportion of online sales [2] - Despite GPM pressure, Anta's OPM improved due to increased government subsidies, with OPM expected to remain healthy through refined expense management [2] Group 4: Future Outlook - The company anticipates net profits of 13.4 billion yuan, 15 billion yuan, and 16.8 billion yuan for 2025-2027, reflecting year-on-year growth of 13%, 12%, and 12% respectively [2] - Anta's brand expansion overseas is accelerating, with plans for increased investment in FILA and recent acquisition of the Wolf Paw brand to enhance its brand matrix [2]

Investment Rating - The investment rating for Anta Sports is "Buy" and is maintained [5]. Core Views - Anta Sports achieved a revenue of 38.54 billion yuan in H1 2025, representing a year-on-year increase of 14.3%. The operating profit margin (OPM) was 26.3%, up 0.6 percentage points year-on-year, and the net profit attributable to shareholders was 7.03 billion yuan, also up 14.5% year-on-year, indicating performance exceeded expectations. The company plans to distribute an interim dividend of 3.53 billion yuan, with a payout ratio of 50% [2][4]. Summary by Sections Performance Overview - In H1 2025, Anta's revenue from its brands was as follows: Anta brand revenue increased by 5% to 16.9 billion yuan, FILA brand revenue increased by 9% to 14.2 billion yuan, and other brands saw a significant increase of 61% to 7.4 billion yuan. The company is experiencing steady growth in the domestic market due to a multi-channel store model, and overseas market expansion is gradually showing results [6]. Gross Profit Margin (GPM) and Operating Profit Margin (OPM) - The GPM for Anta and FILA brands decreased by 1.7 percentage points and 2.2 percentage points respectively. The decline in Anta's GPM is attributed to increased costs in professional categories and a higher proportion of online business. However, the OPM for Anta and FILA brands increased by 1.5 percentage points and decreased by 0.9 percentage points to 23.3% and 27.7% respectively. Government subsidies contributed positively to Anta's OPM performance [6]. Long-term Growth Path - Despite short-term pressures from increased competition and ongoing investments, Anta's long-term growth trajectory remains clear. The company is accelerating its international expansion, and the recent acquisition of the Wolf Claw brand is expected to enhance its brand portfolio. Projections for net profit attributable to shareholders for 2025-2027 are 13.4 billion yuan, 15 billion yuan, and 16.8 billion yuan, representing year-on-year growth of 13%, 12%, and 12% respectively [6][8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10] Core Views - The report highlights a stable performance in H1 2025, with a revenue of 38.54 billion, representing a year-on-year increase of 14.3%, while the net profit attributable to the parent company was 7.03 billion, down 8.9% year-on-year, but adjusted for the impact of Amer Sports' listing, it shows a 14.5% increase [4][6] - The company is optimistic about the development of its multi-brand matrix, with strong growth in outdoor brands and a focus on refined store operations [6][9] Financial Performance Summary - In H1 2025, the company's revenue by brand showed a year-on-year increase: Anta brand revenue increased by 5.4% to 16.95 billion, FILA brand revenue increased by 8.6% to 14.18 billion, and other brands saw a significant increase of 61.1% to 7.41 billion [6] - The gross profit margin slightly decreased by 0.7 percentage points to 63.4%, primarily due to a decline in Anta's gross margin by 1.7 percentage points to 54.9% and a decrease in FILA's gross margin by 2.2 percentage points to 68% [6] - The operating profit margin increased by 0.6 percentage points to 26.3%, while the adjusted net profit margin decreased by 1.2 percentage points to 17.1% [6] Store Network and Operational Efficiency - As of H1 2025, the company operated 7,187 Anta stores, 2,722 Anta Kids stores, 2,054 FILA stores, 241 Descente stores, 199 Kolon stores, and 50 MAIAACTIVE stores, indicating a strategic focus on enhancing store efficiency and consumer experience [7] - The average inventory turnover days increased by 22 days to 136 days, while accounts receivable turnover days remained stable at 19 days, and accounts payable turnover days also remained stable at 52 days [6] Future Earnings Forecast - The company is projected to achieve revenues of 79.56 billion, 88.05 billion, and 97.57 billion for 2025, 2026, and 2027 respectively, with growth rates of 12%, 11%, and 11% [9][10] - The net profit attributable to the parent company is expected to be 13.52 billion, 15.34 billion, and 17.05 billion for the same years, with a decrease of 13% in 2025 followed by increases of 13% and 11% in subsequent years [9][10]

Core Viewpoint - The company reported a revenue of 38.544 billion yuan for the first half of 2025, representing a year-on-year growth of 14.3%, while the net profit attributable to shareholders decreased by 8.9% to 7.031 billion yuan. Excluding one-time gains from the Amer listing, net profit actually increased by 14.5% [1][4]. Group 1: Company Performance - In H1 2025, the company's revenue reached 38.544 billion yuan, with a year-on-year increase of 14.3%. The e-commerce channel revenue grew by 17.6%, accounting for 34.8% of total revenue, an increase of 1.0 percentage points [1]. - The company's net profit attributable to shareholders was 7.031 billion yuan, down 8.9% year-on-year. However, excluding the one-time gain from the Amer listing, net profit increased by 14.5% [1][4]. - The overall gross profit margin decreased by 0.7 percentage points to 63.4%, primarily due to the lower margins from e-commerce and increased contributions from footwear products [4]. Group 2: Brand Performance - Anta brand revenue grew by 5.4% to 16.95 billion yuan in H1 2025, with direct-to-consumer (DTC) and e-commerce channels showing growth of 5.3% and 10.1%, respectively [2]. - FILA brand achieved a revenue of 14.18 billion yuan, up 8.6% year-on-year, but experienced a decline in gross margin by 2.2 percentage points to 68.0% due to increased costs from enhancing product functionality [3]. - Other brands, including Descente and KOLON SPORTS, saw a significant revenue increase of 61.1% to 7.41 billion yuan, with gross margin improving by 1.2 percentage points to 73.9% [3]. Group 3: Financial Metrics - The company proposed an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1]. - The average inventory turnover days increased by 22 days to 136 days in H1 2025, indicating a potential challenge in inventory management [4]. - The net cash balance at the end of H1 2025 was 31.539 billion yuan, reflecting a strong liquidity position [4].

Core Viewpoint - The company reported a revenue increase of 14.3% year-on-year to 38.54 billion yuan in the first half of 2025, with a net profit attributable to shareholders of 7.03 billion yuan, indicating strong growth despite pressures on profit margins from its mainstream brands [1][2]. Financial Performance - Revenue for the first half of 2025 reached 38.54 billion yuan, up 14.3% year-on-year, while operating profit increased by 17.0% to 10.13 billion yuan [1]. - The net profit attributable to shareholders was 7.03 billion yuan, with a comparable net profit growth of 14.5% when excluding one-time gains from the previous year's listing of a subsidiary [1]. - The company proposed an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1]. Brand Performance - Anta brand revenue grew by 5.4% year-on-year to 16.95 billion yuan, with a gross profit margin (GPM) decrease of 1.7 percentage points to 54.9% due to increased costs in professional products and a higher proportion of e-commerce sales [1]. - FILA brand revenue increased by 8.6% to 14.18 billion yuan, with GPM down by 2.2 percentage points to 68.0%, primarily due to rising costs of functional and high-quality products [1]. - Other brands saw a significant revenue increase of 61.1% to 7.41 billion yuan, with GPM up by 1.2 percentage points to 73.9% [1]. Channel Performance - E-commerce revenue rose by 17.6% year-on-year, accounting for 34.8% of total revenue, reflecting a 1.0 percentage point increase [2]. - As of the end of the first half of 2025, the company operated 7,187 adult stores and 2,722 children's stores, with a net increase of 52 adult stores and a decrease of 62 children's stores since the beginning of the year [2]. Cost Management - The overall gross margin decreased by 0.7 percentage points to 63.4%, while the net profit margin attributable to shareholders remained stable at 18.2% year-on-year [2]. - Employee costs, advertising expenses, and R&D costs as a percentage of revenue increased slightly, with employee costs at 15.7%, advertising at 6.6%, and R&D at 2.6% [2]. Future Outlook - The company maintains a positive outlook on brand growth potential, projecting revenues of 78.99 billion yuan, 87.08 billion yuan, and 95.38 billion yuan for 2025 to 2027, with year-on-year growth rates of 11.5%, 10.2%, and 9.5% respectively [3]. - Expected net profits for the same period are projected at 13.50 billion yuan, 15.11 billion yuan, and 17.03 billion yuan, with a slight decline in 2025 followed by growth in subsequent years [3].

Industry Trends - The Chinese sports market is diversifying, with a market size of 400 billion yuan and a pre-pandemic compound annual growth rate (CAGR) of 17%, while penetration rates are expected to rise from 7.3% in 2010 to 15.3% by 2024 [1] - The industry has experienced three growth cycles: 2008-2010 saw the rise of professional sports and leisure; 2014-2019 was marked by a high-end sports fashion trend; and from 2021 onwards, professional and outdoor sports have led diversified development [1] - Compared to China, the penetration rates in Europe, America, and Japan are generally higher, with distinct development paths: Europe and America focus on mass sports and hardcore outdoor activities, while Japan and South Korea emphasize fashionable sports [1] Company Overview - Anta Sports is a leading multi-brand sports company, projected to achieve revenue of 70.8 billion yuan in 2024 with a gross margin of 62% [2] - The company has a well-structured brand matrix with three major brand groups: professional, outdoor, and fashion, which are developing synergistically [2] - Anta has expanded its brand matrix through acquisitions, including MAIA ACTIVE and Jack Wolfskin, and has formed a global dual-drive with Amer Sports (brands like Arc'teryx and Salomon) [2] Competitive Advantage - The company is capitalizing on the trend of sports merging with leisure and social activities, with its brands catering to various consumer needs [3] - Anta's main brand focuses on professional sports with a strong retail system and cost-performance advantage, while other brands like Descente and Salomon target niche markets [3] - High-end brands leverage design and celebrity endorsements to capture market share, with FILA enhancing its fashion appeal and Descente focusing on high-end customer engagement [3] Growth Potential - The brand matrix strategy is expected to stimulate incremental demand, with global operations likely to yield significant growth opportunities [4] - Recent popularity of brands like Arc'teryx and Salomon has led to substantial growth in categories like outdoor jackets and shoes, with social media engagement projected to increase by 80%-200% by 2025 [4] - The overseas sports market is six times larger than China's, with higher consumer spending power in developed regions, indicating strong potential for international brand growth [4] Profit Forecast - The brand matrix is anticipated to drive growth and profitability, with the main brand expected to achieve mid-to-high single-digit compound growth and stable profit margins [5] - FILA is projected to maintain steady growth focusing on elegant sports, while other niche brands like Descente and Kolon are expected to sustain over 30% compound growth [5] - Amer Sports is expected to contribute net profits, growing from over 1 billion yuan this year to over 2 billion yuan in three years [5]

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 116, reflecting an adjustment based on slightly better-than-expected performance in the first half of 2025 [1][4]. Core Insights - Anta Sports reported a revenue increase of 14.3% year-on-year to RMB 38.544 billion in H1 2025, with a net profit attributable to shareholders (excluding the impact of Amer's listing gains) rising by 14.5% to RMB 7.03 billion [1][2]. - The Amer brand has turned profitable, contributing approximately RMB 430 million in profit, a significant improvement from a loss of RMB 20 million in H1 2024 [2]. - The main brand, Anta, achieved revenue of RMB 16.95 billion in H1 2025, up 5.4% year-on-year, while FILA's revenue grew by 8.6% to RMB 14.18 billion, driven by strong performance in professional sports categories [3]. Financial Summary - The report projects the following earnings per share (EPS) for 2025-2027: RMB 4.84, RMB 5.36, and RMB 5.88, respectively, with an upward revision from previous estimates [1][4]. - Revenue forecasts for 2025, 2026, and 2027 are RMB 78.967 billion, RMB 86.321 billion, and RMB 93.886 billion, respectively, reflecting growth rates of 11.5%, 9.3%, and 8.8% [5][12]. - The gross profit margin is expected to stabilize around 62.2% for 2025, with a net profit margin of 17.2% [5][13]. Brand Performance - The other brands under Anta, including Descente and Kolon, saw a remarkable revenue growth of 61.1% to RMB 7.41 billion in H1 2025, with a gross margin of 73.9% [3]. - Anta's strategy includes targeting different consumer segments through various store formats and product lines, enhancing its market presence [2][3].

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The report emphasizes that Anta Sports has a well-structured brand matrix that aligns with industry trends, enabling gradual growth [2] - The company is positioned to benefit from the diversification of the Chinese sports market and the potential for global expansion, which could lead to significant long-term growth opportunities [4][9] Industry Trends - The Chinese sports market is diversifying, with the sports footwear and apparel market reaching approximately 400 billion yuan, and a pre-pandemic compound annual growth rate (CAGR) of 17% [1][18] - The penetration rate of the sports market is expected to rise from 7.3% in 2010 to 15.3% by 2024, indicating a strong growth trajectory [1][18] - The industry has experienced three growth cycles, with the current phase focusing on professional and outdoor sports [1][21] Company Overview - Anta Sports is projected to achieve revenues of 70.8 billion yuan in 2024, with a gross margin of 62% [2] - The company operates a multi-brand strategy with three main brand groups: professional, outdoor, and fashion, which are all growing in synergy [2] - Recent acquisitions, such as MAIA ACTIVE and Wolf Claw, have expanded the brand matrix and enhanced global competitiveness [2] Competitive Strengths - Anta Sports is capitalizing on the trend of integrating sports with leisure and social activities, with each brand catering to specific consumer needs [3] - The main brand focuses on affordable professional sports products, while high-end brands like FILA leverage design and celebrity endorsements to capture market share [3] Growth Potential - The brand matrix is expected to stimulate incremental demand, with global operations likely to yield significant growth opportunities [4] - The report forecasts that the company's net profit will grow from over 1 billion yuan this year to more than 2 billion yuan in three years, driven by strong brand performance [5][9] Financial Forecast - The company is expected to achieve a net profit of 13.48 billion yuan in 2025, with a comparable profit growth of 13.0% [9][10] - Revenue projections for the next three years indicate a steady increase, with expected revenues of 80.83 billion yuan in 2025 [10]

Investment Rating - The investment rating for the company is "Buy-A" (maintained) [1] Core Views - The company reported a revenue of 38.544 billion yuan for the first half of 2025, representing a year-on-year growth of 14.3%, while the net profit attributable to shareholders decreased by 8.9% to 7.031 billion yuan [2][4] - The company plans to distribute an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [2] - The growth in outdoor brands is strong, and the effects of refined operational management are becoming evident [1] Revenue and Profitability - In the first half of 2025, the company's revenue reached 38.544 billion yuan, with a year-on-year increase of 14.3%. Excluding the one-time gain from Amer's listing, the revenue and performance showed good growth [4] - The e-commerce channel revenue grew by 17.6% year-on-year, accounting for 34.8% of total revenue, an increase of 1.0 percentage points [4] - The overall gross profit margin decreased by 0.7 percentage points to 63.4%, primarily due to the lower margin from e-commerce and increased contributions from footwear products [9] Brand Performance - Anta brand revenue increased by 5.4% to 16.95 billion yuan in the first half of 2025, with direct-to-consumer (DTC) model, e-commerce, and traditional wholesale revenues growing by 5.3%, 10.1%, and declining by 10.6% respectively [5] - FILA brand revenue grew by 8.6% to 14.18 billion yuan, but the gross profit margin decreased by 2.2 percentage points to 68.0% due to increased costs from enhancing product functionality [6] - Other brands, including Descente and KOLON Sports, saw a revenue increase of 61.1% to 7.41 billion yuan, with gross profit margin improving by 1.2 percentage points to 73.9% [7] Financial Forecasts - The company is expected to achieve earnings per share (EPS) of 4.97, 5.65, and 6.55 yuan for the years 2025, 2026, and 2027 respectively [11] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 17.6, 15.5, and 13.4 times respectively [11] - Revenue forecasts for the years 2025 to 2027 are 78.943 billion yuan, 88.275 billion yuan, and 98.821 billion yuan, with year-on-year growth rates of 11.5%, 11.8%, and 11.9% respectively [13]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [3][7]. Core Insights - The company achieved a revenue of RMB 38.54 billion in H1 2025, representing a year-on-year increase of 14.3%. However, the net profit attributable to shareholders decreased by 8.9% to RMB 7.03 billion. Adjusted net profit increased by 7.1% to RMB 6.6 billion, with a comparable net profit growth of 14.5% when excluding the impact of Amer Sports' listing [7][8]. - The company plans to distribute a cash dividend of HKD 1.37 per share [7]. Summary by Sections Company Overview - The company operates in the apparel industry, with a current H-share price of HKD 94.85 and a market capitalization of HKD 211.95 billion. The stock has seen a 12-month high of HKD 104.97 and a low of HKD 67.12 [2]. Recent Ratings - The company has received "Buy" ratings in recent evaluations, with the last rating issued on July 17, 2025, at a closing price of HKD 91.85 [3]. Performance by Brand - Anta brand revenue reached RMB 16.95 billion, up 5.4% year-on-year, while FILA generated RMB 14.18 billion, an 8.6% increase. Other brands, including KOLON and DESCENT, saw a significant revenue increase of 61.1% to RMB 7.41 billion [8]. Product Category Performance - Revenue from footwear products was RMB 16.39 billion, a 12% increase, while apparel revenue was RMB 20.89 billion, up 15.5%. Accessories revenue grew by 24.6% to RMB 1.27 billion [8]. Financial Projections - The company forecasts net profits of RMB 13.25 billion, RMB 14.96 billion, and RMB 16.92 billion for 2025, 2026, and 2027, respectively. The expected earnings per share (EPS) for these years are RMB 4.72, RMB 5.33, and RMB 6.02, with corresponding price-to-earnings (P/E) ratios of 18x, 16x, and 14x [10][12].