Ge Long Hui·2025-08-29 03:02Core Insights - The company reported a 14.3% year-on-year revenue growth to 38.54 billion yuan in the first half of 2025, with a net profit increase of 14.5% to 7.03 billion yuan, excluding gains from the Amer Sports listing [1] - The overall gross margin decreased by 0.7 percentage points to 63.4%, attributed to the increased contribution from lower-margin e-commerce and footwear businesses, while operating profit margin improved by 0.6 percentage points to 26.3% due to effective cost control and increased government subsidies [1] - The company declared an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2%, and has repurchased nearly 2 billion HKD worth of shares since the announcement of the buyback plan [1] Brand Performance - Anta's main brand revenue grew by 5.4% to 16.95 billion yuan, while FILA's revenue increased by 8.6% to 14.18 billion yuan, and other brands saw a significant growth of 61.1% to 7.41 billion yuan [2] - Operating profit margins for Anta, FILA, and other brands were 23.3%, 27.7%, and 33.2%, reflecting a mixed performance across the brand portfolio [2] - The acquisition of JACK WOLFSKIN in May 2025 further strengthened the outdoor brand matrix, and a joint venture with MUSINSA aims to explore the integration of sports, fashion, and new retail [2] Management Outlook - Management remains confident in the company's growth trajectory, updating the 2025 guidance with expectations of single-digit growth for Anta and FILA brands, while other brands are projected to grow over 40% [2] - The profit contribution from the Amer Sports joint venture is also expected to continue growing rapidly [2] Financial Projections - The company maintains its profit forecasts for 2025-2026, with slight upward adjustments for 2027, projecting net profits of 13.48 billion, 15.46 billion, and 17.36 billion yuan for 2025-2027, respectively [3] - The reasonable valuation has been adjusted to 119-124 HKD, corresponding to a 2025 PE of 23-24X, maintaining an "outperform" rating [3]