Investment Rating - The report maintains a "Buy" rating for Anta Sports [4] Core Views - Anta Sports reported a revenue growth of 14% and a profit growth of 63% in H1 2024, exceeding expectations. The company achieved a revenue of 33.7 billion yuan, with a gross margin increase of 0.8 percentage points to 64.1% [1] - The board declared an interim dividend of HKD 1.18 per share, maintaining a stable payout ratio of 50.1%. Additionally, a share buyback plan of up to HKD 10 billion over the next 18 months was announced [1] Revenue Summary - Anta brand revenue grew by 13.5% in H1 2024, driven by product and channel optimization. Direct-to-Consumer (DTC) sales increased by 10.5%, e-commerce by 20.1%, and traditional wholesale by 8.5%. Over 80% of Anta's stores operate under the DTC model [2] - FILA brand revenue increased by 6.8% to 13.1 billion yuan, with strong performance in e-commerce and adult categories. The brand focuses on high-quality development and expanding product categories [3] Profitability Summary - Anta's gross margin improved by 0.8 percentage points to 56.6%, and operating profit margin increased by 0.8 percentage points to 21.8% in H1 2024, attributed to channel structure changes and product mix optimization [2] - FILA's gross margin rose by 1 percentage point to 70.2%, while operating profit margin decreased by 1.1 percentage points to 28.6% [8] Future Outlook - The company expects a revenue growth of 12% and a profit growth of 35% for 2024. The anticipated contribution from Amer Sports and a one-time gain of 1.6 billion yuan are factored into the profit forecast [9] - The report adjusts the net profit forecast for 2024-2026 to 13.836 billion, 14.093 billion, and 15.998 billion yuan, respectively, corresponding to a PE ratio of 13 times for 2024 [9]

Investment Rating - The report maintains a rating of "Buy" for Anta Sports [2][4]. Core Views - Anta Sports' H1 performance exceeded expectations, with plans to repurchase shares worth up to HKD 10 billion [4]. - The company expects to continue growth above industry levels in H2, leading to an upward revision of net profit forecasts for 2024-2026 [4]. Financial Summary - H1 revenue reached CNY 33.74 billion, a year-on-year increase of 13.8% [4]. - Excluding Amer, net profit was CNY 6.16 billion, up 17% year-on-year [4]. - Gross margin improved to 64.1%, an increase of 0.8 percentage points [4]. - Operating profit margin remained stable at 25.7% [4]. Brand Performance - Main brand revenue grew by 13.5% in H1, totaling CNY 16.08 billion, driven by product matrix optimization and channel refinement [4]. - FILA's H1 revenue was CNY 13.06 billion, up 6.8%, with a gross margin of 70.2% [4]. - Other brands saw significant growth, with revenue of CNY 4.6 billion, a 41.8% increase [4]. Future Expectations - The main brand's performance in July and August aligns with expectations, maintaining a forecast of double-digit growth for the year [4]. - FILA's annual revenue growth forecast has been revised down to high single digits due to pressures in the trendy and children's segments [4]. - Other brands are expected to meet initial revenue forecasts, with Descente projected to grow over 20% and KOLON over 30% [4].

Anta Sports (2020 HK) A moderate outlook and buybacks announced We are satisfied by the 1H24 results, where the one-off gains and dividends have more than offset the slow core profit growth. Going forward, even though the growth outlook has kind of moderated, we do think the impressive share buyback programme should more than compensate for that. Maintain BUY but trim TP to HK$ 97.05, based on 18x FY25E P/E (rolled over from 20x FY24E P/E). It is trading at 14x FY25E P/E. Anta brand's FY24E guidance reitera ...

Financial Performance - Revenue for the first half of 2024 increased by 13.8% to RMB 33,735 million[2] - Net profit attributable to shareholders increased by 62.6% to RMB 7,721 million, including non-cash accounting gains from Amer Sports[2] - Basic earnings per share grew by 58.0% to RMB 2.75[8] - Gross profit increased to RMB 21,618 million, up 15.3% from RMB 18,755 million in the previous year[12] - Operating profit for Anta reached RMB 8,660 million, a 13.6% increase compared to RMB 7,623 million in 2023[12] - The net profit attributable to shareholders rose by 17.0% to RMB 6.16 billion, up from RMB 5.26 billion in the previous year[18] - Total comprehensive income for the period was RMB 9,475 million, up from RMB 6,173 million in the same period last year, marking an increase of 53.5%[132] Dividends and Shareholder Returns - The board declared an interim dividend of HKD 1.18 per share, representing 50.1% of net profit attributable to shareholders[8] - The company declared an interim dividend of 118 HKD cents per share, a 43.9% increase from 82 HKD cents in the previous year[12] - The interim dividend for 2024 is projected to be HKD 118 per share, reflecting a consistent increase from previous years[117] Store Expansion and Market Presence - Total number of Anta stores reached 7,073, with 2,831 dedicated children's stores[9] - FILA stores totaled 1,981 across mainland China, Hong Kong, Macau, and Singapore[9] - Anta Sports plans to increase the number of Anta and Anta Kids stores to between 7,100 and 7,200 in mainland China and between 2,800 and 2,900 overseas by the end of 2024[112] - FILA aims to expand its store count to between 2,100 and 2,200 across mainland China, Hong Kong, Macau, and Singapore by the end of 2024[112] E-commerce and Digital Strategy - The company is strategically increasing investments in e-commerce, which has shown rapid growth outpacing major competitors[21] - Anta's e-commerce business contributed 33.8% to the overall revenue, up from 30.8% in the same period last year, with a 25.1% increase in absolute terms compared to the previous year[27] - The company has implemented artificial intelligence in product design and live streaming operations to improve product development efficiency and enhance consumer experience[39] Product Development and Innovation - The company launched core technologies and products such as Anta Membrane, Soft Heart Yarn, and C10 Pro during the fiscal period to enhance consumer satisfaction and product quality[39] - Anta Sports has launched two high-performance cushioning running shoes, "Travel Step" and "Travel Path," utilizing PG7 technology co-developed with Sinopec, enhancing comfort with Sorona® fiber[29] - The company is expanding its product offerings in running shoes, having signed Ethiopian long-distance runner Kenenisa Bekele as a spokesperson, enhancing its professional running shoe matrix[28] Financial Health and Cash Flow - Operating cash inflow for the period was RMB 8,502 million, with free cash flow at RMB 7,619 million[2] - Cash and cash equivalents totaled RMB 47.83 billion as of June 30, 2024, slightly down from RMB 48.52 billion at the end of 2023[19] - The net cash flow from operating activities was RMB 8,502 million, compared to RMB 10,164 million in the same period last year[95] Sustainability and Corporate Responsibility - The company aims to reduce absolute greenhouse gas emissions by 42.0% for Scope 1 and Scope 2 by 2030, using 2022 as the base year, and aims for a 51.6% reduction in Scope 3 emissions per dollar added value[39] - Over 140 suppliers have been encouraged to use clean and renewable energy, and a carbon inventory data management system has been established to support suppliers in collecting carbon emissions and energy usage data[39] - The company has trained over 6,800 sports teachers and built 185 Anta Dream Centers, benefiting over 7.2 million young people through its public welfare initiatives[40] Market Trends and Consumer Behavior - The consumer market is showing a polarization trend, with high-income groups favoring high-quality and personalized products, while price-sensitive consumers lean towards high-value alternatives[25] - The shift in consumer demographics, particularly the growing influence of the post-90s and post-95 generations, is leading to increased demand for outdoor sports products, necessitating timely marketing adjustments[48] Risks and Challenges - The company faces significant risks related to technological advancements and product innovation, which could adversely affect its operations if it fails to adapt[46] - 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[49] - The company’s overseas operations are subject to foreign exchange risks, as fluctuations in currency values can affect the valuation of assets, liabilities, income, and expenses[50]

国泰君安版权所有发送给上海东方财富金融数据服务有限公司.东财接收研报邮箱.ybjieshou@eastmoney.com p1 Amer Q2 业绩超预期，增厚安踏全年利润 安踏体育(2020) [Table_Industry] 纺织服装业 [Table_Invest] 评级： 增持 ——安踏体育更新报告 股票研究 /[Table_Date] 2024.08.22 | --- | --- | --- | |----------|---------------------------|-----------------------------| | | 刘佳昆(分析师) | 曹冬青(分析师) | | | 021-38038184 | 0755-23976666 | | | liujiakun029641@gtjas.com | caodongqing026730@gtjas.com | | 登记编号 | S0880524040004 | S0880524080001 | 本报告导读： Q2 Amer 收入利润均超预期，看好 2024 年 Amer 增厚安踏集团业绩。 投资要点： [Table_Summary] ...

Investment Rating - The report gives a "Buy" rating for Anta Sports, indicating a positive outlook for the company's future performance [4][52]. Core Insights - Anta Sports has established itself as a leading brand in the domestic sportswear market through a clear strategic direction and effective decision-making, supported by a multi-brand strategy and overseas expansion plans [3][4]. - The demand for sportswear is expected to grow due to economic growth and changing consumer attitudes towards health and fitness, with the domestic sportswear market projected to grow at a low double-digit annual rate [3][8]. - The company's multi-brand operation and global expansion are key factors in enhancing its competitive edge, with the main brand, FILA, and other brands targeting different market segments [3][4][8]. Summary by Sections 1. Strategic Clarity and Decision-Making - Anta Sports has developed a robust multi-brand strategy, acquiring several leading brands to strengthen its market position [3][14]. - The management team is experienced and well-structured, contributing to effective operational execution [15][19]. 2. Industry Demand Drivers - Economic growth and increased health awareness among consumers are driving demand for sportswear, with government policies supporting the industry [8][30]. - The domestic sportswear market is still in a growth phase, with per capita spending expected to rise significantly [30][31]. 3. Company Performance and Brand Strategy - Anta's main brand and FILA have shown strong revenue growth, with CAGR of 14.80% and 14.18% respectively from 2019 to 2023 [21][24]. - The outdoor brands DESCENTE and KOLON SPORT are also experiencing rapid growth, with a CAGR of 42.01% during the same period [21][24]. 4. Financial Forecasts and Valuation - The report forecasts Anta's revenue to reach 709.75 billion RMB in 2024, with a year-on-year growth of 13.82% [51][52]. - The expected net profit for 2024 is 129.41 billion RMB, reflecting a growth of 26.42% compared to the previous year [51][52]. 5. Comparative Valuation - Anta's 2024 PE ratio is projected to be 15.3X, compared to a weighted average PE of 18.4X for comparable companies, indicating potential for growth [4][52].

Investment Rating - The report maintains a "Buy" rating for Anta Sports [4] Core Views - Anta's main brand revenue grew in the high single digits year-on-year in Q2 2024, while FILA's revenue increased in the mid-single digits. Other brands saw revenue growth of 40%-50%, with Anta's main brand slightly exceeding expectations [2] - The improvement in discounts for Anta's main brand and the strategy to stabilize and expand is promising. E-commerce channels continue to drive steady growth, with Q2 2024 e-commerce revenue growth of 20%-25%. The online discount for the main brand improved, with a healthy inventory-to-sales ratio below 5. The signing of NBA star Kyrie Irving as a spokesperson and the opening of new high-end urban channels are expected to enhance brand value [2][3] - FILA's online performance was strong, with over 20% revenue growth despite a high base. The inventory-to-sales ratio remained healthy below 5. Descente and Kolon also performed well, with revenue growth of 60% and 35%-40% respectively in Q2 2024, indicating strong consumer purchasing power and a robust outdoor market [2] - The earnings forecast predicts EPS of 4.53, 4.87, and 5.59 CNY per share for 2024-2026. Excluding one-time gains from Amer's listing in 2024, the report assigns a 20x PE valuation for 2024, corresponding to a fair value of 91.61 HKD per share [2][3] Financial Summary - Revenue (in million CNY) is projected to grow from 62,356 in 2023 to 70,682 in 2024, reflecting a growth rate of 13.4% [3] - EBITDA is expected to increase from 17,333 in 2023 to 21,467 in 2024 [3] - Net profit attributable to shareholders is forecasted to rise from 10,236 in 2023 to 12,835 in 2024, with a growth rate of 25.39% [3] - EPS is projected to grow from 3.61 in 2023 to 4.53 in 2024 [3]

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HK$101.85, reflecting a 4% decrease from the previous target price of HK$105.55 [1][3]. Core Insights - Anta Sports is expected to achieve a revenue growth of 10.4% year-on-year in 1H24, with net profit attributable to shareholders benefiting from the listing of Amer Sports, projected to increase by 51.1% [3]. - The Anta brand is anticipated to meet its annual guidance, while the FILA brand may face some pressure [3]. - The report forecasts a revenue increase for Anta Sports of 11.8% and a net profit increase of 25.6% for the full year 2024, reaching RMB 697.2 billion and RMB 128.6 billion, respectively [4]. Financial Projections - Revenue for 2024 is projected at RMB 69.723 billion, with a net profit of RMB 12.859 billion, translating to an EPS of RMB 4.54 [5][6]. - The report adjusts the revenue forecasts for 2024-2026 downwards by 0.8%, 1.4%, and 2.0%, respectively, while net profit forecasts are adjusted upwards by 2.3% for 2024 and downwards for 2025 and 2026 [4][6]. - The expected P/E ratio for 2025 is maintained at 20 times, corresponding to the new target price of HK$101.85, which still offers a 48% upside potential from the current price of HK$69.00 [2][4]. Brand Performance - The Anta brand is projected to achieve a revenue growth of 12.5% in 2H24 and 10.0% for the full year 2024, driven by successful product launches and marketing strategies [3][4]. - FILA's revenue growth is expected to slow down, with a forecast of 10.7% growth in 2H24 and 9.0% for the full year 2024, indicating potential challenges [4]. - Other brands under Anta are expected to see significant growth, with a projected revenue increase of 35%-40% in 1H24 [3].

Investment Rating - The investment rating for Anta Sports (2020.HK) is "Buy" and is maintained [4]. Core Views - The company reported Q2 2024 retail data, with Anta/FILA/other brands' revenue growing by high single/mid single/40%-45% year-on-year. Anta's brand performance met expectations, while FILA's performance was slightly below expectations, and other brands exceeded expectations [5]. - Anta's channel performance shows differentiation, with e-commerce continuing to grow significantly. The overall consumption power remains weak, and the low-tier market channel structure transformation poses challenges for Anta's street stores in lower-tier cities [5]. - FILA's children's clothing performance was weak, but online sales continued to grow. The children's market is becoming saturated, leading to a slight decline in FILA Kids' revenue [5]. - Inventory levels are healthy, with discounts remaining stable year-on-year. Anta and FILA have effectively controlled discounts and inventory, with a stock-to-sales ratio below 5, indicating sustained high-quality growth [5]. - Looking ahead to H2, the launch of Anta's Irving and Olympic series products, along with the introduction of cost-effective products like PG7, is expected to drive growth. FILA's store image upgrades and focus on tennis and golf categories are anticipated to accelerate growth [5]. - The company forecasts net profits of 11.884 billion, 13.684 billion, and 15.355 billion for 2024-2026, representing year-on-year growth of 16%, 15%, and 12%, respectively. The current price corresponds to P/E ratios of 16, 13, and 12 [5][8].

Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020 HK) with a target price of 69 70 HKD [4][6] Core Views - Anta Sports achieved steady retail sales growth across all brands in Q2 2024 with healthy inventory and discount levels [2] - The company is expected to continue high-quality growth driven by its multi-brand strategy and upcoming Paris Olympics [4] - Anta brand retail sales grew by high single digits in Q2 2024 while FILA grew by mid single digits and other brands surged 40-45% [2] - The company has maintained good cost control particularly on rental and Paris Olympics marketing expenses [4] Financial Performance - Revenue is projected to grow from 70 347 million RMB in 2024E to 88 059 million RMB in 2026E representing a CAGR of 11 5% [5] - Net profit is expected to increase from 13 002 million RMB in 2024E to 15 782 million RMB in 2026E [5] - EPS is forecasted to rise from 4 59 RMB in 2024E to 5 57 RMB in 2026E [5] - ROE is projected to remain strong at 22 8% in 2024E and 21 5% in 2026E [5] Brand Performance - Anta brand achieved high single digit growth in Q2 2024 with inventory turnover ratio below 5 months and improved retail discounts [2] - FILA brand grew by mid single digits in Q2 2024 with inventory turnover ratio below 5 months and stable retail discounts [2] - Other brands including KOLON and DESCENTE grew rapidly at 40-45% in Q2 2024 with improved discounts and inventory levels [2] Operational Highlights - Anta brand launched multiple products including the Owen series and Paris Olympics award ceremony outfits [3] - FILA upgraded store image and increased focus on professional sports and footwear products [3] - DESCENTE and KOLON maintained rapid growth and expanded their scale [3] Valuation Metrics - The stock is trading at 14x 2024E PE and 3x 2024E PB [5] - EV EBITDA ratio is projected to improve from 10x in 2023 to 8x in 2024E [16] - Dividend yield is expected to increase from 2 2% in 2023 to 3 7% in 2024E [16]