Ge Long Hui·2026-01-27 20:45Core Viewpoint - Anta Group has reached an agreement to acquire 29.06% of PUMA SE shares from the Pinault family’s investment company Groupe Artémis at a price of €35 per share, totaling €1.505 billion (approximately RMB 12.278 billion) [1][4] Group 1: Company Overview - PUMA's current management is focused on brand recovery, which may incur one-time costs, with a goal to restore growth by 2027 [2][5] - PUMA's management has confirmed that the company expects a low double-digit decline in sales for 2025, with anticipated losses in reported EBIT [3][4] - The company is undergoing a reset to establish itself as one of the top three sports brands globally, aiming for healthier profit margins and growth above industry levels [3][4] Group 2: Acquisition Details - The acquisition price of €1.505 billion corresponds to approximately 0.7x PUMA's projected price-to-sales (PS) ratio for 2027 [4][5] - Although the acquisition price is at a premium to PUMA's current stock price, Anta is focused on the long-term brand value rather than short-term financial metrics [4][5] Group 3: Strategic Significance - This acquisition marks a significant step in Anta's globalization strategy, aiming to develop into a world-class multi-brand sports goods group [5][6] - PUMA holds a leading position in various sports categories and key markets, which complements Anta's existing brand portfolio [5][6] - There is significant potential for PUMA in the Chinese market, where its revenue currently represents only 7% of global income, compared to 17-30% for leading global sports brands [6] Group 4: Investment Outlook - The acquisition is expected to enhance Anta's multi-brand global operations, with PUMA's management working towards brand revitalization and growth by 2027 [2][5] - Anta maintains its profit forecasts, projecting net profits of RMB 13.21 billion, RMB 13.93 billion, and RMB 15.58 billion for 2025-2027, with respective growth rates of +10.7%, +5.5%, and +11.9% [2][5] - The target price for Anta is maintained at HKD 107-112, corresponding to a 20-21X PE for 2026, with an "outperform" rating [2][7]