Core Viewpoint - Goldman Sachs reports that Anta Sports (02020) has exceeded expectations for mid-term core operating profit and net profit, with management adjusting sales guidance for the core brand to a mid-single-digit growth rate while maintaining the annual guidance for the Fila brand [1] Group 1: Financial Performance - Anta's mid-term performance reflects the successful execution of its multi-brand strategy, with a focus on investing in existing businesses and actively exploring acquisition targets to enhance its portfolio [1] - The target price for Anta has been raised from HKD 117 to HKD 121, with a reaffirmed "Buy" rating [1] Group 2: Management Strategy - The management's statements align with investor expectations, indicating a commitment to maintaining a stable dividend payout ratio and share buyback plans [1] - Anta is expected to see improved visibility in sales and profitability, with a positive outlook on sustainable market share growth [1]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][40]. Core Views - The company is expected to achieve double-digit growth in both revenue and core profit in the first half of 2025, driven by its brand matrix [1][7]. - The management remains confident in the company's development and has updated the guidance for 2025, indicating continued growth potential [3][37]. - The acquisition of JACK WOLFSKIN is expected to enhance the outdoor brand matrix and contribute positively to future growth [30]. Revenue and Profitability - In the first half of 2025, the company's revenue increased by 14.3% year-on-year to 38.54 billion RMB, while the net profit attributable to shareholders rose by 14.5% to 7.03 billion RMB [1][7]. - The revenue breakdown by brand shows Anta at 16.95 billion RMB (up 5.4%), FILA at 14.18 billion RMB (up 8.6%), and other brands at 7.41 billion RMB (up 61.1%) [2][7]. - The overall gross margin decreased by 0.7 percentage points to 63.4%, while the operating profit margin improved by 0.6 percentage points to 26.3% due to effective cost control [1][8]. Brand Performance - Anta brand's revenue growth is attributed to refined operations and a push for globalization, with a gross margin of 54.9% [25]. - FILA brand focuses on high-end sports fashion and professional breakthroughs, achieving a revenue of 14.18 billion RMB with a gross margin of 68.0% [29]. - Other brands, including DESCENTE and KOLON SPORT, saw significant growth, with a revenue increase of 61.1% and a gross margin of 73.9% [30]. Financial Forecasts - The company forecasts net profits of 13.48 billion RMB, 15.46 billion RMB, and 17.36 billion RMB for 2025, 2026, and 2027 respectively, with corresponding growth rates of 13.0%, 14.6%, and 12.3% [3][40]. - The reasonable valuation has been adjusted to 119-124 HKD, corresponding to a PE ratio of 23-24x for 2025 [3][40]. Cash Flow and Financial Health - The net cash position is reported at 31.54 billion RMB, indicating a strong financial condition [1][22]. - The company declared an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1][22].

Investment Rating - The report assigns a target price of HKD 121.2 for Anta Sports (2020.HK), indicating a potential upside of 19.3% from the current price of HKD 101.6 [1]. Core Insights - Anta's management has adjusted the annual revenue guidance for the Anta brand from high single-digit growth to mid single-digit growth due to weaker retail performance in July and August, although recent trends show improvement [4]. - The company continues to optimize and upgrade its channels, focusing on enhancing store efficiency rather than significantly increasing the number of stores [4]. - Anta's multi-brand strategy is deepening, with other brands like Descente and Kolon showing strong revenue growth, contributing to overall profitability [4]. - The first half of 2025 saw a 14.5% year-on-year increase in net profit to RMB 7.03 billion, aligning with market expectations [5]. Financial Performance - Revenue for 2023 is projected at RMB 62.36 billion, with a year-on-year growth of 16.2%, and expected to reach RMB 80.95 billion by 2025 [6]. - The net profit for 2023 is estimated at RMB 10.24 billion, reflecting a significant year-on-year increase of 34.9% [6]. - The operating profit margin for the first half of 2025 is reported at 26.3%, indicating operational efficiency improvements [9]. Brand Performance - The Anta brand's gross margin decreased by 1.7 percentage points due to a higher proportion of e-commerce sales, while the operating profit margin increased by 1.5 percentage points, aided by government subsidies [5]. - The Fila brand's gross margin fell by 2.2 percentage points, primarily due to increased retail discounts [5]. - Other brands, including Descente and Kolon, experienced a 61% year-on-year revenue growth in the first half of 2025, contributing to 19% of total revenue [4]. Market Position - Anta's market capitalization stands at HKD 285.213 billion, with an average daily trading volume of HKD 876.3 million over the past three months [1]. - The stock has traded within a 52-week range of HKD 68.35 to HKD 107.5, reflecting market volatility [1].

Group 1 - Goldman Sachs believes Anta Sports' mid-term performance exceeded expectations and praises its multi-brand strategy execution [2] - The firm expects the company to continue investing in existing businesses while seeking acquisition opportunities to expand its business portfolio [2] - Goldman Sachs is optimistic about Anta Sports' market share growth potential and maintains a "Confident Buy" rating, raising the target price from HKD 117 to HKD 121 [2]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 38.54 billion HKD in the first half of 2025, representing a year-on-year growth of 14.3%. The net profit attributable to shareholders, excluding gains from the Amer listing, was 7.03 billion HKD, reflecting a 14.5% increase year-on-year. The main business net profit, excluding the Amer listing gains and losses, was 6.60 billion HKD, which is a 7.1% year-on-year growth. The earnings per share (EPS) stood at 2.53 HKD, with a proposed interim cash dividend of 1.37 HKD per share, resulting in a payout ratio of 50.2% [4][5][10] Financial Performance - The gross margin for the first half of 2025 was 63.4%, a decrease of 0.7 percentage points year-on-year. The operating profit margin improved by 0.6 percentage points to 26.3%. The net profit margin attributable to shareholders, excluding the Amer listing gains, remained stable at 18.2%, while the main business net profit margin decreased by 1.1 percentage points to 17.1% due to an increase in the effective tax rate [5][8] - The company reported a significant increase in revenue from the Amer brand, which reached 19.26 billion HKD, a year-on-year growth of 23.5% [5][6] Brand and Product Performance - Revenue growth for the main brands in the first half of 2025 was as follows: Anta brand +5.4%, FILA +8.6%, and other brands +61.1%. Online sales increased by 17.6%, accounting for 34.8% of total revenue, which is a 1.0 percentage point increase year-on-year [6][7] - The revenue breakdown by product category showed footwear at 42.5%, apparel at 54.2%, and accessories at 3.3%, with respective year-on-year growth rates of +12.0%, +15.5%, and +24.6% [6] Strategic Developments - The company completed the acquisition of the German outdoor brand Wolfskin in May 2025, enhancing its presence in the professional outdoor sports market and advancing its globalization strategy. The company continues to focus on a "single focus, multi-brand, globalization" strategy [8][9] - The company has established a joint venture with MUSINSA to operate Korean fashion businesses in mainland China and Hong Kong, which is expected to strengthen its position in the sports fashion segment [9] Future Outlook - For the full year of 2025, the company has adjusted its retail revenue guidance for the Anta brand from high single digits to mid single digits, while maintaining the FILA brand's guidance for mid single-digit growth. Other brands are expected to see revenue growth of over 40% [10] - As of June 2025, the company had a net cash position of 31.54 billion HKD, indicating strong cash reserves and risk resilience [10]

Core Viewpoint - Anta Sports (02020) reported a strong performance in the first half of the year, with revenue increasing by 14% year-on-year to RMB 38.544 billion, exceeding expectations [1] - The company is optimistic about achieving double-digit growth, adjusting its retail sales target for the Anta brand to the mid-single digits, supported by strong performances from all brands and stable results from Fila [1] Financial Performance - Revenue increased by 14% year-on-year to RMB 38.544 billion [1] - Gross profit rose by 13% year-on-year to RMB 24.425 billion [1] Future Outlook - The company is confident in achieving its double-digit growth target due to strong brand performance [1] - The target price for Anta Sports has been raised from HKD 108.6 to HKD 114.2, maintaining a "Buy" rating [1] - Earnings forecasts for the next two years have been increased by 1% and 3%, respectively, with revenue forecasts also raised by 3% each [1]

Group 1 - The core viewpoint of the article is that Anta Sports' (02020) performance in the first half of the year met expectations, with a revenue increase of 14% year-on-year to 38.544 billion RMB, surpassing forecasts [1] - Gross profit also rose by 13% year-on-year to 24.425 billion RMB, indicating strong operational performance [1] - The company has adjusted its retail sales target for the Anta brand to a mid-single-digit growth for this year, reflecting confidence in achieving double-digit growth due to strong performance across all brands and stable performance from Fila [1] Group 2 - The target price for Anta Sports has been raised from 108.6 HKD to 114.2 HKD, maintaining a "Buy" rating [1] - Earnings forecasts for the next two years have been increased by 1% and 3%, respectively, while revenue forecasts have been raised by 3% each [1]

Core Viewpoint - CICC maintains the EPS forecast for Anta Sports at 4.82/5.47 HKD for 2025/26, with the current stock price corresponding to 19/17 times the 2025/26 P/E ratio, maintaining an outperform rating and target price of 120.92 HKD, indicating a 19% upside potential [1] Financial Performance - Anta Sports reported 1H25 revenue growth of 14% to 38.5 billion HKD, with net profit attributable to shareholders increasing by 14.5% to 7.03 billion HKD, outperforming expectations due to high growth from other brands and increased government subsidies [2] - The company declared an interim dividend of 1.37 HKD per share, corresponding to a payout ratio of approximately 50% [2] Brand Performance - The main brand, Anta, focused on the mass professional sports sector, achieving a revenue increase of 5.4% in 1H25, with the PG7 series selling over 2 million pairs [3] - FILA experienced a revenue increase of 8.6% in 1H25, successfully identifying growth opportunities in niche categories like golf and tennis, with online sales growing by double digits [3] - Other brands saw a significant revenue increase of 61.1%, with Descente and KOLON performing well in their respective segments [3] Operational Efficiency - The advertising expense ratio decreased by 0.9 percentage points to 6.6% in 1H25, while employee cost ratio increased by 0.2 percentage points to 15.7% due to increased retail staff compensation [4] - The operating profit margin improved by 0.6 percentage points to 26.3% due to effective cost control and increased government subsidies [4] Amer Performance - The integration of Amer turned a loss of 20 million HKD in 1H24 into a profit contribution of 430 million HKD in 1H25, demonstrating Anta's brand-building capabilities with continued high growth from Arc'teryx and strong performance from Salomon and Wilson [5] Future Trends - Anta adjusted its full-year guidance for the Anta brand to mid-single-digit growth due to fluctuations in the retail environment, while increasing the growth guidance for other brands from 30% to 40% [6] - FILA maintains its full-year guidance for mid-single-digit growth, and Anta announced a joint venture with Korea's largest fashion platform MUSINSA in China and Hong Kong, holding a 40% stake, which is seen as a beneficial attempt to explore the fusion of sports and fashion [6]

Core Viewpoint - CICC maintains the EPS forecast for Anta Sports at 4.82/5.47 HKD for 2025/26, with the current stock price corresponding to 19/17 times the 2025/26 P/E ratio, maintaining an outperform rating and target price of 120.92 HKD, indicating a 19% upside potential [1] Financial Performance - Anta Sports reported 1H25 revenue growth of 14% to 38.5 billion HKD, with net profit attributable to shareholders increasing by 14.5% to 7.03 billion HKD, outperforming expectations due to high growth from other brands and increased government subsidies [2] - The company declared an interim dividend of 1.37 HKD per share, corresponding to a payout ratio of approximately 50% [2] Brand Performance - The main brand, Anta, focused on the mass professional sports sector, achieving a revenue increase of 5.4% in 1H25, with the PG7 series selling over 2 million pairs [3] - FILA experienced an 8.6% revenue increase in 1H25, successfully identifying growth opportunities in niche categories like golf and tennis, with online sales growing by double digits [3] - Other brands saw a significant revenue increase of 61.1%, with Descente and KOLON performing well in their respective segments [3] Operational Efficiency - The company improved its operating profit margin by 0.6 percentage points to 26.3% in 1H25, attributed to effective cost control and increased government subsidies [4] - Advertising expenses decreased by 0.9 percentage points to 6.6%, while employee cost ratio increased by 0.2 percentage points to 15.7% due to higher retail staff compensation [4] Amer Performance - The integration of Amer turned a loss of 20 million HKD in 1H24 into a profit contribution of 430 million HKD in 1H25, highlighting the company's brand-building capabilities with continued high growth from Arc'teryx and strong performance from Salomon and Wilson [5] Future Trends - The company adjusted its full-year guidance for the Anta brand to mid-single-digit growth due to fluctuations in the retail environment, while increasing the growth guidance for other brands from 30% to 40% [6] - FILA's full-year growth guidance remains in the mid-single digits, and the company announced a joint venture with Korea's largest fashion platform MUSINSA in China and Hong Kong, holding a 40% stake, which is seen as a beneficial exploration of the integration of sports and fashion [6]

Summary of Anta Sports Products Earnings Call Company Overview - **Company**: Anta Sports Products (2020.HK) - **Market Cap**: HK$286.8 billion / $36.8 billion - **Enterprise Value**: HK$326.7 billion / $41.9 billion - **Current Price**: HK$101.60 - **Target Price**: HK$121.00 (Upside: 19.1%) [7][19] Key Industry Insights - **Sales Guidance**: Anta has lowered its core sales guidance from high single digits (HSD%) to mid single digits (MSD%) for the Anta brand, while maintaining MSD% growth for the Fila brand. Other smaller brands have increased their growth guidance from over 30% to over 40% year-on-year [1][25]. - **Sales Trends**: Retail sales growth from July to August was slower than Q2 and below internal expectations, but there is hope for improvement in September [22][21]. - **Brand Strategy**: The company is focusing on a multi-brand strategy, with smaller brands helping to stabilize overall sales and margins [2][19]. Financial Performance - **Earnings Performance**: Anta reported a healthy core operating profit (OP) and net profit (NP) for 1H25, but the share price retreated by 2% due to mixed messages from the analyst briefings [1]. - **Revenue Forecasts**: Adjustments to net income forecasts for 2025-2027 reflect a slight decrease of -2% to 0% [2]. - **2025 Revenue Estimates**: - New: Rmb 80,548.1 million - Old: Rmb 80,435.6 million - Growth Rate: 13.7% [29] Brand-Specific Updates - **Anta Brand**: Operating profit margin (OPM) is expected to be maintained at 20-25% [25]. - **Fila Brand**: OPM is projected at around 25% [25]. - **Jack Wolfskin**: The brand is undergoing a 3-5 year revitalization plan, with expected losses exceeding Rmb 100 million in 2025 [1][28]. - **Other Brands**: - Descente's monthly sales per store increased to approximately Rmb 2.7 million in 1H25 [28]. - Kolon sports store count target increased from 190-200 to 200-210 [28]. Capital Allocation and M&A Strategy - **Investment Focus**: The company will prioritize investments in existing businesses and actively explore M&A targets to enhance its portfolio [1]. - **Buyback Plan**: Anta plans to maintain a stable payout ratio alongside its buyback strategy [1]. Risks and Challenges - **Market Volatility**: The company acknowledges potential volatility in gross profit margins (GPM) due to industry headwinds [26]. - **Discount Pressures**: There are concerns regarding discount levels and their impact on margins [31]. Conclusion - **Investment Recommendation**: Goldman Sachs maintains a "Buy" rating on Anta Sports Products, citing the company's strong execution of its multi-brand strategy and potential for sustainable market share gains [2][19].