Core Viewpoint - Citic Lyon maintains a target price of HKD 116 for Anta Sports (02020) and a "Outperform" rating, expressing confidence in the company's ability to achieve double-digit sales growth for the full year of 2025 [1] Group 1: Sales Growth and Market Strategy - Anta shows strong confidence in achieving double-digit sales growth for the full year of 2025, with signs of improvement observed from late August to the present [1] - The company's growth is primarily supported by a multi-brand matrix, increasingly relying on brand and service offerings that cater to emerging niche sports such as outdoor activities, tennis, golf, and yoga [1] Group 2: Cost Control and Operational Strategy - The company is exercising cautious cost control measures [1] - Anta plans to expand its store count in ASEAN countries to 1,000 within three years, with over 200 stores expected to open by the first half of 2025 [1] - Management is optimistic about enhancing operational superiority through a multi-brand strategy, and Citic Lyon remains positive about Anta's strong execution capabilities [1]

Core Insights - Anta Sports (02020) announced its goal to implement a thousand-store plan for the Anta brand in Southeast Asia over the next three years during the third Asian Vision Forum held in Singapore [1] - The company's Southeast Asia business revenue is expected to nearly double year-on-year by the first half of 2025, demonstrating the effectiveness of its high-value products, localization, and digital strategies [1] - Anta's "brand + retail" business model has successfully expanded overseas, validated by the operations of other brands like Fila and Descente in Southeast Asia, showcasing the success of its "single platform, multi-brand, all-channel" strategy [1] Business Strategy - Anta has established its Southeast Asia headquarters in Singapore, using it as a strategic hub to strengthen its market position and gradually expand into South Asia, Australia, and New Zealand [1] - The company operates multiple brands under the Amer Sports Group through a "single platform, multi-brand, all-channel" model, creating a seamless online and offline sales ecosystem for each brand [1] - Anta adheres to a strategy of "global thinking, local execution," actively exploring replicable overseas expansion models and development paths [1] Financial Performance - By the first half of 2025, Anta's Southeast Asia revenue is projected to nearly double year-on-year, with the addition of new offline business in the U.S. and the Middle East contributing to an overall overseas revenue growth of over 150% [1] - The global market share outside of China for Anta and Amer Sports Group is nearly 30% [1]

2025年上半年，安踏品牌东南亚流水同比增长接近翻倍，新增美国线下业务和中东业务，共同拉动海外 业务流水同比增长超过150%。安踏加亚玛芬集团，其中国以外的全球市场占比近30%。 智通财经APP获悉，9月11日，安踏体育(02020)出席在新加坡举行的第三届亚洲愿景论坛，分享其全球 化战略在东南亚市场的最新进展与成功实践，宣布未来三年目标是实现安踏品牌在东南亚的千店计划。 2025年上半年，安踏品牌东南亚业务流水同比增长接近翻倍，其高价值商品、本地化和数字化策略初见 成效，不仅成功实现"品牌+零售"的商业模式出海，通过斐乐、迪桑特等其他品牌的东南亚运营，更是 验证了安踏集团"单平台、多品牌、全渠道"出海东南亚战略的成功落地。 目前，安踏把东南亚总部设在新加坡，以东南亚为桥头堡来不断强化市场优势地位，并逐步拓展至南 亚、澳大利亚及新西兰等周边市场，通过"单平台、多品牌、全渠道"模式，运营安踏集团与亚玛芬集团 旗下多个品牌，实现线上线下全渠道无缝链接，为每个品牌构建完整的销售生态。在东南亚市场，安踏 坚持"全球化思维、本土化执行"的策略，积极探索可复制的出海模式与发展路径。 ...

Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Date**: September 10, 2025 Industry Insights - **Market Size**: The Chinese sports footwear and apparel market is approximately 400 billion RMB, with a compound annual growth rate (CAGR) of 17% over the five years prior to the pandemic. Post-pandemic growth has slowed, with a projected growth rate of 6% in 2024, but the penetration rate continues to rise, indicating strong growth potential in the sports apparel sector [2][6][29]. - **Brand Concentration**: The Chinese sports footwear and apparel market has a high brand concentration, with numerous comprehensive sports brands. As consumer engagement in sports deepens, niche brands are expected to see greater growth opportunities [2][11]. Financial Performance - **Revenue**: Anta Group's total revenue for 2024 exceeded 100 billion RMB, with the main brand accounting for less than half of this revenue. The operating profit margin for Anta is approximately 20%, while Fila accounts for nearly 40% of revenue with a profit margin of about 25% [2][12][14]. - **Growth Strategy**: Anta's diversified brand operation strategy allows it to expand into the entire footwear and apparel market, which is valued at 2.4 trillion RMB, creating a market expansion opportunity of about five times [2][12][23]. Globalization Strategy - **International Expansion**: Anta's globalization strategy is crucial for enhancing valuation and long-term growth potential. The overseas sports market is significantly larger than China's, with higher per capita consumption. Successful international expansion could lead to substantial increases in both valuation and profitability, referred to as a "Davis Double" [2][5][26][29]. - **Store Presence**: Anta currently operates over 240 stores internationally, including in Southeast Asia, the Middle East, and Europe, and has established strategic partnerships with leading distributors in these regions [2][26][27]. Competitive Landscape - **Valuation Comparison**: International sports brands generally have higher price-to-earnings (PE) ratios compared to domestic brands, reflecting their cross-regional growth potential. Anta's current valuation is around 15 times, which is considered low given its growth prospects [3][28][29]. - **Market Trends**: The market is witnessing a shift towards functional specialization in daily leisure needs and a trend towards social demand in the mid to high-end footwear and apparel market, which is valued at approximately 500 billion RMB [16][20]. Brand Strategy and Positioning - **Brand Operations**: Anta's strategy involves operating multiple brands to cater to different consumer segments, extending beyond just sports footwear and apparel. This approach has allowed Anta to capture a larger market share and enhance its brand presence [23][30]. - **Product Design Success**: Anta has successfully launched products like the PG7 running shoes, which combine professional technology with affordability, enhancing its competitive edge in the market [17][30]. Future Opportunities - **Market Growth Potential**: The increasing depth and frequency of consumer participation in sports in China will provide significant growth opportunities for niche sports footwear and apparel segments [15][24]. - **Social Media Engagement**: Anta's brands have shown a significant increase in social media engagement and search interest, indicating a positive trend that could translate into sales growth [25][30]. Conclusion Anta Sports is positioned for substantial growth through its globalization strategy, diversified brand operations, and strong market presence. The company is well-placed to capitalize on emerging trends in consumer behavior and market dynamics, potentially leading to significant valuation increases in the coming years [32].

Financial Performance - Revenue for the six months ended June 30, 2025, reached RMB 38,544 million, representing a 14.3% increase compared to RMB 33,735 million in 2024[20] - Operating profit increased by 17.0% to RMB 10,131 million in 2025 from RMB 8,660 million in 2024[20] - Shareholders' profit attributable rose to RMB 7,031 million, a 14.5% increase from RMB 6,142 million in 2024[11] - The company achieved record revenue in the first half of 2025, exceeding market expectations and maintaining a 12-year consecutive growth streak[27] - Anta Sports' revenue increased by 14.3% year-on-year to RMB 38.54 billion in the current fiscal period[45] - The operating profit margin rose by 0.6% to 26.3%, demonstrating strong execution capabilities[45] - The overall gross profit margin decreased by 0.7 percentage points to 63.4% due to increased contributions from lower-margin e-commerce and footwear products[45] - The company reported a total comprehensive income of RMB 6,668 million, compared to RMB 9,475 million in the previous year, reflecting a decrease of 30%[179] - The company reported a total comprehensive income of RMB 5,592 million for the six months ended June 30, 2025, compared to RMB 8,774 million for the same period in 2024, a decrease of 36.8%[186] Revenue Breakdown - The number of offline stores exceeded 13,000 globally, with e-commerce contributing 34.8% to total revenue, up from 33.8% in the first half of 2024[18] - Footwear revenue reached RMB 16,390 million, accounting for 42.5% of total revenue, with a growth of 12.0% from RMB 14,635 million in 2024[114] - Apparel revenue grew by 15.5% to RMB 20,886 million, representing 54.2% of total revenue, up from RMB 18,082 million in 2024[114] - Accessories revenue increased by 24.6% to RMB 1,268 million, making up 3.3% of total revenue, compared to RMB 1,018 million in 2024[114] - Anta's segment revenue grew by 5.4% to RMB 16.95 billion, with an operating profit margin increase of 1.5% to 23.3%[48] - FILA's segment revenue achieved an 8.6% year-on-year growth to RMB 14.18 billion, although the operating profit margin decreased by 0.9% to 27.7%[49] - Other brands saw a significant revenue surge of 61.1% to RMB 7.41 billion, with an operating profit margin increase of 3.3% to 33.2%[50] Strategic Initiatives - The company aims to enhance its multi-brand strategy to capture both mass and premium sports goods markets[3] - The strategic focus remains on a multi-brand approach, enhancing brand differentiation and complementarity as a core growth engine[33] - The company emphasizes investment in existing businesses, particularly in innovation, digitalization, and retail transformation to improve profitability[35] - The company aims to become a leading global multi-brand sports goods group, focusing on high-quality development and globalization[31] - The company is expanding its presence in Southeast Asia and has successfully established retail networks in the UAE, Saudi Arabia, Qatar, Egypt, and Kenya[58] - The company aims to have 7,000 to 7,100 Anta stores and 2,100 to 2,200 FILA stores by the end of 2025[63] Acquisitions and Investments - The acquisition of JACK WOLFSKIN was completed, focusing on outdoor market positioning and a three to five-year revitalization plan[33] - The company completed the acquisition of German outdoor brand JACK WOLFSKIN in May 2025, enhancing its global presence and operational efficiency[52] - The company holds a 40% stake in MUSINSA China, aiming to integrate fashion and sports industries to attract younger consumers[33] - The company issued EUR 1.5 billion zero-coupon convertible bonds due December 2029, with a listing on the Singapore Stock Exchange[160] - The net proceeds from the convertible bond issuance amounted to approximately EUR 1.487 billion after deducting commissions and expenses[161] Market and Economic Conditions - The consumer confidence index showed a recovery compared to the second half of 2024, but remained below long-term averages, indicating cautious consumer spending[43] - The global economic growth forecast for 2025 is 2.3%, with developed countries experiencing significant slowdowns[42] - The company faces risks from economic fluctuations that may impact consumer demand, particularly in the sports footwear and apparel industry[95] - The competitive landscape in the domestic sports footwear and apparel industry is intensifying, with a shift towards competition based on new technologies and high-value-added products[99] Operational Efficiency - The average inventory turnover days increased to 136 days in 2025 from 114 days in 2024[21] - Employee costs increased by 15.6% to RMB 6,043 million, reflecting continued investment in human resources and talent development[127] - The effective tax rate for the period was 28.4%, up from 26.8% in the first half of 2024[140] - The company recorded net financing income of RMB 596 million, down from RMB 710 million in the previous year[179] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[179] - The company plans to accelerate the development of sustainable products and materials, aiming for a balance between economic benefits and social responsibility[61] - The company is focusing on integrating AI technology across its operations to enhance decision-making and consumer experience[55]

Group 1: Company Performance - Company reported H1 2025 revenue of 38.5 billion, a year-on-year increase of 14% [1] - Operating profit margin increased by 0.6 percentage points to 26%, with Anta's margin rising by 1.5 percentage points to 23% and FILA's margin decreasing by 0.9 percentage points to 28% [1] - Adjusted net profit attributable to shareholders was 6.6 billion, up 7% year-on-year; excluding dilution from Amer Sports listing, net profit was 7 billion, a 15% increase [1] - Net cash inflow from operating activities was 10.9 billion, with free cash flow of 7.5 billion, indicating stable cash generation capability [1] - The board declared an interim dividend of HKD 1.37 per share for the six months ending June 30, 2025 [1] Group 2: Product Innovation and Brand Strategy - Anta is driving product upgrades through technology, launching new running shoes and apparel lines, and enhancing brand reputation in professional circles [2] - FILA is focusing on high-end sports fashion, targeting middle-class consumers, and enhancing its influence in golf and tennis through sponsorships and product innovation [3] - DESCENTE is expanding its product offerings in professional running shoes and children's market, while enhancing retail networks in high-end urban areas [4] - KOLON SPORT is optimizing its product structure to increase the proportion of footwear and expanding its strategic network from major cities to broader regions [4] Group 3: Financial Forecast Adjustments - Based on strong performance from FILA and outdoor brands, the company adjusted its profit forecasts for 2025-2027, expecting revenues of 79.6 billion, 88.7 billion, and 99.4 billion respectively [4] - Projected net profits for the same period are 14.5 billion, 16.3 billion, and 17.7 billion respectively, with corresponding P/E ratios of 17x, 15x, and 14x [4]

Summary of Anta Sports Products Conference Call Company Overview - **Company**: Anta Sports Products (2020.HK) - **Market Cap**: HK$262.8 billion / $33.7 billion - **Enterprise Value**: HK$302.7 billion / $38.8 billion - **3m ADTV**: HK$892.0 million / $113.8 million Key Industry Insights - **Market Sentiment**: The market has largely absorbed the mediocre trading performance of Anta and Fila in the third quarter to date (3QTD) [1] - **Growth Drivers**: Strengthened product offerings are identified as the key growth pillar for the Anta brand, with visible changes in Fila expected by early 2026 [1] - **Smaller Brands Performance**: Smaller brands experienced natural growth moderation in 3QTD compared to 2Q25, but still showed robust performance against peers [1] Financial Performance and Projections - **Revenue Growth**: Anta and Fila reported positive year-over-year growth in July and August, despite challenges such as unfavorable weather and a low season in July [2] - **Management Outlook**: The management expressed cautious optimism regarding the consumption environment, anticipating weak consumer willingness in September [2] - **Cost Control**: The company demonstrated industry-leading cost control capabilities, with a confident tone regarding achieving operating profit margin (OPM) targets across brands [1] Strategic Initiatives - **M&A Exploration**: Anta is actively exploring new mergers and acquisitions in various sports verticals globally, with a thoughtful decision-making process focusing on product quality and reasonable valuations [1][20] - **Product Focus**: Significant efforts have been made to enhance product offerings, particularly in running and outdoor products, which are expected to benefit from seasonal trends [20] Financial Forecasts - **Revenue Projections**: - 2024: Rmb 70,826 million - 2025E: Rmb 80,548 million - 2026E: Rmb 89,250 million - 2027E: Rmb 98,183 million [7] - **EBITDA Projections**: - 2024: Rmb 19,658 million - 2025E: Rmb 22,611 million - 2026E: Rmb 25,869 million - 2027E: Rmb 28,933 million [7] - **EPS Projections**: - 2024: Rmb 5.55 - 2025E: Rmb 4.82 - 2026E: Rmb 5.48 - 2027E: Rmb 6.23 [7] Risks and Challenges - **Key Risks**: Potential risks include weaker growth for Anta and Fila, discount pressures, and challenges in operating expense control [22] Conclusion - **Investment Rating**: The company maintains a "Buy" rating, with a price target of HK$121 based on a 21x 2027E P/E ratio [21]

Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Brands**: Anta, Fila, Descente, and others - **Fiscal Year**: 2025 Key Points Anta Brand Performance - Anta expects to maintain mid-single-digit growth for the full year, with a 23.3% operating profit margin in the first half. Despite increased expenses in the second half, the company aims to achieve a 20-25% operating profit margin through strict cost control [2][3] - New store formats such as Champion Stores and Super Anta Stores are being rolled out, with average store efficiencies exceeding 500,000 yuan [2][8] - The company plans to reduce capital expenditures to 2.5-3 billion yuan for the year while maintaining a dividend payout ratio above 50% [4][27] Fila Brand Performance - Fila's revenue grew in the high single digits in the first half, with an expected mid-single-digit growth in the second half. The operating profit margin reached 27.7% [2][3] - The increase in online sales has led to a decline in gross margin, but product structure optimization is expected to stabilize margins [2][11] Other Brands - Other brands under Anta saw a 60% increase in revenue in the first half, with an annual forecast raised from 30% to 40% [3][4] - The Wolf Claw brand is expected to incur a loss of approximately 300 million yuan due to restructuring and platform development costs [2][6][28] Market Strategy - Anta is focusing on the running category, which is performing well, while the basketball category remains stable, outperforming the industry average [4][19][20] - The company is also exploring opportunities in the outdoor market, with plans to enhance product offerings in high-end outdoor and trail running segments [10][19] Financial Guidance - Anta aims to maintain a net profit margin of 20-25% for the year, factoring in government subsidies [3][5] - The company is cautious about the third quarter, with inventory levels stable and retail discounts under control [3] Descente Brand Performance - Descente's single-store sales reached approximately 2.7 million yuan, with a target of 260-270 stores by year-end [22][26] - The brand's VIP membership contribution is at 90%, with membership numbers increasing from 4 million to 6 million [24][25] Future Outlook - Anta is considering acquisitions without a specific size limit, focusing on both small and large-scale opportunities [29] - The company is also adjusting its e-commerce strategy, with expectations for improved performance during major sales events like Double Eleven [18] Additional Insights - The company is actively managing its store count, with a target of 7,000-7,100 stores by year-end [13] - Anta's overseas expansion is gradual, with current operations in Southeast Asia and plans for further growth in North Africa and the Middle East [14][15] This summary encapsulates the key insights and financial expectations from Anta Sports' conference call, highlighting the performance of its various brands and strategic initiatives moving forward.

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].