2024-07-09 10:01Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 115, based on a 25 times PE for 2024 [1][2][4]. Core Views - Anta's main brand achieved high single-digit growth in Q2 2024, with significant contributions from both offline and online sales channels [2]. - The company is expected to continue benefiting from the recovery in consumer spending and the launch of new products, leading to accelerated growth in the second half of the year [2]. - The overall inventory and discount levels are healthy, with a stock-to-sales ratio maintained below 5, indicating effective inventory management [2]. Summary by Sections Main Brand Performance - Anta's main brand recorded high single-digit growth in Q2 2024, with offline sales growing in the mid-single digits and e-commerce sales increasing by 20-25% [2]. - The company launched the PG7 running shoe platform, priced at HKD 399 and HKD 299, aimed at consolidating its position in the mass market [2]. - The brand is also expanding its presence in premium shopping areas with new store formats [2]. FILA Brand Performance - FILA experienced mid-single-digit growth in Q2 2024, with e-commerce sales still growing by 20% despite a high base from the previous year [2]. - The brand's performance was affected by market saturation in children's products and cyclical challenges in the Fusion line [2]. Other Brands Performance - Other brands, particularly in outdoor sports, showed strong performance with growth rates of 40-45% in Q2 2024 [2]. - Descent and Kolon brands recorded growth rates of 35-40% and nearly 60%, respectively, with improvements in discount levels for Kolon [2]. Financial Projections - The report forecasts EPS for 2024, 2025, and 2026 to be RMB 4.26, RMB 4.88, and RMB 5.46, respectively [1][2]. - Revenue is projected to grow from RMB 62.36 billion in 2023 to RMB 69.55 billion in 2024, reflecting a growth rate of 11.5% [3][7]. - The net profit attributable to shareholders is expected to reach RMB 11.81 billion in 2024, with a growth rate of 15.4% [3][7].