Investment Rating - The report maintains a "Buy" rating for Anta Sports [7] Core Views - Anta and FILA brands achieved low single-digit growth in Q3 2025, while other brands saw a significant increase of 45-50% in revenue, indicating resilience amid industry slowdowns and intensified promotions [1][2] - The company is expected to continue its strategy of maintaining healthy inventory levels and optimizing its product structure around high-growth segments such as running, outdoor, and tennis [1][2] - The report anticipates that the adjustments in the e-commerce organizational structure will gradually dissipate, and FILA will focus on enhancing its tennis product line and channel upgrades [1][2] Summary by Sections Anta Brand Performance - In Q3 2025, Anta's brand revenue showed low single-digit growth, with expectations for both offline and online channels to achieve low single-digit and high single-digit growth respectively [2] - The offline discount rate is approximately 71%, while the online discount rate is around 50%, with inventory turnover slightly above 5 months, indicating a healthy range [2] FILA Brand Performance - FILA's brand revenue also experienced low single-digit growth in Q3 2025, with strong resilience in e-commerce expected to yield high single-digit growth [3] - The brand has solidified its position in tennis by renewing its sponsorship of the China Open and enhancing customer experience through new store formats [3] Other Brands Performance - Other brands within the group saw a revenue increase of 45-50% in Q3 2025, with specific brands like Descente and KOLON expected to grow by approximately 30% and 70% respectively [4] - The growth is attributed to high-end functional products and differentiated retail experiences, with a focus on outdoor activities and retail channel upgrades [4] Profit Forecast and Valuation - The report adjusts the net profit forecast for 2025-2027 down by 3.8%, 3.6%, and 4.0% to RMB 130.3 billion, RMB 146.3 billion, and RMB 163.0 billion respectively [5] - The target price is adjusted to HKD 115.24, maintaining a target PE of 23.2x for 2025, reflecting the company's multi-brand and retail operational advantages [5]

Investment Rating - The report maintains a "Buy" rating for Anta Sports [6] Core Views - Anta Sports' Q3 performance showed slight growth in revenue for Anta and Fila brands, while other brands experienced a significant increase of 45% to 50% [1][2][3] - The overall performance aligns with expectations, despite a challenging domestic consumption environment [1] - The company is focusing on optimizing its offline store structure and adjusting its e-commerce strategy, which may impact short-term sales [1][2] - The report forecasts a 10% revenue growth for the company in 2025, with a projected revenue of 78.181 billion yuan and a net profit of 13 billion yuan, reflecting a 9% increase from 2024 [3][5] Summary by Sections Anta Brand - Q3 revenue growth for the Anta brand was in the low single digits, indicating a healthy operational quality [1] - The company is adjusting its offline store strategy and enhancing its e-commerce framework, which may temporarily affect sales [1] Fila Brand - Fila's Q3 revenue also grew in the low single digits, impacted by high temperatures and fluctuating consumer demand [2] - The brand is expected to leverage the Q4 sales peak to drive growth, with a projected revenue increase in the mid-single digits for 2025 [2] Other Brands - Other brands under Anta experienced a robust revenue growth of 45% to 50%, with notable performance from Descente and Kolon [3] - Maia Active is also expected to show strong growth in Q3 [3] Financial Projections - The report estimates a 10% revenue growth for 2025, reaching 78.181 billion yuan, and a net profit of 13 billion yuan, reflecting a 9% increase from 2024 [3][5] - The projected earnings per share (EPS) for 2025 is 4.64 yuan, with a price-to-earnings (P/E) ratio of 17 times [5][3]

Summary of Anta Sports Products Conference Call Company Overview - **Company**: Anta Sports Products (2020.HK) - **Market Cap**: HK$247.9 billion / $31.9 billion - **Enterprise Value**: HK$287.8 billion / $37.0 billion - **Current Price**: HK$87.80 - **Target Price**: HK$115.00 - **Upside Potential**: 31.0% [1][2][27] Key Industry Insights - **Industry**: Greater China Retail, specifically the sportswear sector - **Market Conditions**: Weaker macroeconomic environment leading to softer sportswear spending and intensified competition [21][22] Core Financial Updates - **3Q25 Performance**: - Anta brand reported low single-digit percentage (LSD%) year-over-year growth, below expectations - Fila brand maintained mid-single-digit percentage (MSD%) growth, while other smaller brands like Descente (+30% yoy), Kolon (+70% yoy), and MAIA (+45% yoy) performed well [1][3][21] - **Revenue Guidance**: - Full-year revenue growth guidance for Anta brand lowered to LSD% (previously MSD%) - Fila brand and other brands expected to grow at +MSD% and >40% yoy respectively [3][21] - **Cost Control**: - Company demonstrated strong cost control capabilities, maintaining operating profit margin (OPM) outlook for Anta brand at the lower end of 20-25% and for Fila brand at ~25% [1][3] Strategic Initiatives - **E-commerce Strategy**: - New e-commerce initiatives expected to take several quarters to execute, with cautious expectations for Double-11 online performance [21] - **Store Optimization**: - 'Light-house Store Campaign' aimed at upgrading stores in lower-tier cities to enhance customer engagement [21] - **Overseas Expansion**: - Targeting 15% of sell-through from non-China markets within five years and over 1000 stores in ASEAN markets in three years [21] Inventory and Discount Management - **Inventory Levels**: - Anta core brand's inventory level at slightly over 5x, considered healthy [21] - Fila's inventory level deteriorated to approximately 6x due to warmer weather [21] - **Discount Strategy**: - Anta plans to maintain stable offline discounts while managing online discounts carefully during the Double-11 shopping festival [21][22] Earnings Revision - **Earnings Forecast**: - Revised down 2025-2027 earnings by 3-4% reflecting slower growth at Anta and Fila brands - New revenue estimates for 2025E at Rmb 79,471 million, 2026E at Rmb 87,200 million, and 2027E at Rmb 94,868 million [2][26] Risks and Challenges - **Key Risks**: - Weaker growth for Anta and Fila brands, discount pressures, and challenges in operating expense control [28] Conclusion - **Investment Rating**: Maintain Buy rating with a target price of HK$115, reflecting confidence in long-term growth potential despite current challenges [2][27]

Investment Rating - The investment rating for Anta Sports is "Outperform the Market" [2][5][10] Core Views - In Q3 2025, Anta's main brand and FILA achieved low single-digit growth, while other brands experienced a significant growth of 45-50%. The overall growth of the Anta Group remains stable, but the growth rate has slowed compared to Q2 [3][4][6] - The management has lowered the annual revenue guidance for the Anta brand but maintained the operating profit margin guidance and revenue growth guidance for FILA and other brands [4][5][10] - The consumer market continues to face pressure, and the management has adjusted the annual guidance to low single-digit growth due to uncertainties in the fourth quarter [5][10] Summary by Sections Q3 Performance - Anta's main brand recorded low single-digit revenue growth, while FILA also achieved low single-digit growth. Other brands continued their high growth trajectory [3][4] - The inventory turnover ratio is healthy, influenced by promotional stock preparations, with the end-of-quarter inventory turnover ratio approaching six months [4][6] Brand Performance - Anta brand's Q3 revenue growth was low single-digit, with online discounts slightly increasing and stable offline discounts. The performance of running shoes and technological new products was notable [6][7] - FILA's Q3 revenue growth was also low single-digit, with a healthy inventory turnover ratio and stable discount rates [8] - Other brands, including Descente and KOLON, saw revenue growth of 45-50%, with Descente growing approximately 30% and KOLON growing 70% [9][10] Financial Forecasts - The forecast for net profit for Anta from 2025 to 2027 is adjusted to 13.24 billion, 15.22 billion, and 17.16 billion yuan respectively, with comparable profit growth rates of 11.0%, 15.0%, and 12.7% [5][12] - The reasonable valuation range is adjusted to 116-121 HKD, corresponding to a PE ratio of 23-24X for 2025 [5][10]

Summary of Anta Sports Q3 2025 Earnings Call Company Overview - **Company**: Anta Sports - **Period**: Q3 2025 Key Industry Insights - **Overall Market Performance**: The overall consumer confidence weakened significantly in Q3 2025, with retail sales growth slowing down. The apparel and textile sector recorded low single-digit growth, with specific monthly growth rates of 3.1% in July, 1.8% in August, and a slight recovery to 4.7% in October [3][4] - **Consumer Spending Trends**: There is a shift in consumer spending from non-essential items to defensive and experiential consumption, leading to decreased purchasing willingness in discretionary categories like apparel [3][4] Company Performance - **Anta Brand Growth**: The main brand achieved low growth, consistent with market trends but outperforming most competitors. The offline discount rate remained stable at around 30%, while online discounts were approximately 50% [2][5][6] - **Inventory Management**: The inventory turnover ratio was slightly above 5 months, indicating a healthy inventory level [2][5] - **Profit Margin Outlook**: Despite lowering the annual revenue forecast to low single-digit growth due to external and internal factors, the operating profit margin target remains unchanged, expected to be in the range of 20% to 25% [2][11] Brand Performance - **FILA**: Achieved low single-digit growth, better than the industry average, and is preparing for the Double Eleven and Double Twelve sales [2][6] - **Descente**: Maintained approximately 30% growth and expanded its offline presence [2][8] - **Kailas**: Experienced strong growth of 70% [2][8] - **Maya**: Achieved a growth rate of 45% [2][8] - **Nanzhuan**: Implemented a brand revival strategy with simultaneous expansion in China and Germany [2][8] Strategic Initiatives - **E-commerce Strategy**: The online business is undergoing restructuring, and a cautious approach was adopted for the Double Eleven sales to balance inventory and discount levels [2][12][9] - **International Expansion**: Plans to open 1,000 stores in Southeast Asia over three years, with expectations that overseas revenue will contribute 15% to total revenue within five years [3][24] Challenges and Adjustments - **Impact of Weather**: Weather changes have affected short-term sales, particularly during the Golden Week. The company is researching better inventory strategies for seasonal transitions [10] - **High Base Effect for FILA**: FILA faces challenges due to high base effects from the previous year but remains optimistic about new product launches [3][13] Future Outlook - **Q4 Expectations**: The company maintains a cautiously optimistic outlook for Q4, focusing on market dynamics and adjusting strategies accordingly [7] - **Long-term Market Confidence**: Despite short-term pressures, the company remains optimistic about the Chinese market's potential and aims for high-quality growth through innovation and brand strengthening [29] Additional Insights - **Discount Levels**: The overall discount level increased by about 2 percentage points in the first half of 2025, with expectations for further increases during the Q4 sales events [21] - **Store Performance**: Different store formats showed varying performance, with the Champion format exceeding expectations [17] This summary encapsulates the key points from Anta Sports' Q3 2025 earnings call, highlighting the company's performance, market conditions, strategic initiatives, and future outlook.

Core Insights - Anta Sports announced that in the third quarter of 2025, the retail sales of Anta and FILA brand products achieved a low single-digit positive growth year-on-year [1] - All other brand products experienced a significant year-on-year growth of 45-50% [1]

Core Insights - Anta Sports (02020) announced that in the third quarter of 2025, the retail value of Anta brand products achieved low single-digit positive growth compared to the same period in 2024 [1] - The retail value of FILA brand products also recorded low single-digit positive growth in the third quarter of 2025 compared to 2024 [1] - All other brand products experienced a significant retail value increase of 45-50% in the third quarter of 2025 compared to the same period in 2024 [1]

Core Insights - Anta Sports (02020.HK) reported a low single-digit positive growth in retail sales value for its Anta brand products in Q3 2025 compared to the same period in 2024 [1] - FILA brand products also experienced low single-digit positive growth in retail sales value in Q3 2025 compared to Q3 2024 [1] - All other brand products saw a significant retail sales value increase of 45-50% in Q3 2025 compared to Q3 2024 [1]

Core Insights - Anta Sports (02020) announced that in Q3 2025, the retail value of Anta brand products achieved low single-digit positive growth compared to the same period in 2024 [1] - In Q3 2025, the retail value of FILA brand products also recorded low single-digit positive growth compared to the same period in 2024 [1] - In Q3 2025, the retail value of all other brand products experienced a significant positive growth of 45-50% compared to the same period in 2024 [1]

所有其他品牌二零二五年第三季度零售表現 二零二五年第三季度，所有其他品牌產品*之零售金額（按零售價值計算）與二 零二四年同期相比錄得 45-50%的正增長。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 ANTA Sports Products Limited 安踏體育用品有限公司 （於開曼群島註冊成立之有限公司） 股份代號：2020（港幣櫃台）及 82020（人民幣櫃台） 二零二五年第三季度之最新營運表現 本公告乃安踏體育用品有限公司（「本公司」，連同其附屬公司統稱為「本集 團」）董事會（「董事會」）自願發出，以提供本集團業務之最新營運表現。 本公告之披露只與本集團安踏、FILA 及所有其他品牌（包括 DESCENTE 及 KOLON SPORT）之業務有關，並未包括 Amer Sports（按本公司最新刊發的中 期報告所定義）之業務。 安踏品牌二零二五年第三季度零售表現 二零二五年第三季度，安踏品牌產品之零售金額（按零售價值計算）與二零二 四年 ...