Ge Long Hui·2026-01-27 20:45Company Dynamics - Anta Sports announced the acquisition of a 29.06% stake in Puma SE for €35 per share, totaling approximately €1.506 billion (around RMB 12.278 billion), fully funded by cash reserves [1] - Upon completion of the transaction, Anta Sports will become the largest shareholder of Puma, which is considered strategically significant [1] Comments - The transaction price is deemed reasonable when considering the long-term brand value, with Puma's projected revenue, net profit, and total assets for 2024 estimated at €8.82 billion, €340 million, and €7.14 billion respectively [1] - Anta Sports stated that the acquisition price represents 0.8 times the enterprise value to the expected revenue for 2027, reinforcing the rationale behind the price [1] Brand Synergy - Puma, with over 70 years of history, excels in various sports sectors and has a strong global presence, particularly in Europe, Latin America, Africa, and India, while its revenue from the Chinese market remains relatively low [2] - The acquisition is expected to enhance Anta Sports' brand portfolio and improve its international competitiveness through complementary product offerings and regional strengths [2] - Anta Sports has successfully developed brands like FILA and Descente in China, and aims to leverage its experience to revitalize Puma's brand value post-acquisition [2] Earnings Forecast and Valuation - The EPS forecast for 2025 is maintained at RMB 4.71, while the forecasts for 2026 and 2027 have been adjusted downwards by 5% and 8% to RMB 4.76 and RMB 5.04 respectively [2] - The current P/E ratios for 2026 and 2027 are projected at 14x and 13x, with a maintained outperform rating for the industry [2] - The target price is set at HKD 110.91, corresponding to 21x and 19x P/E for 2026 and 2027, indicating a potential upside of 45% [2]