Changjiang Securities·2024-07-11 06:31Investment Rating - The investment rating for Anta Sports (2020.HK) is "Buy" and is maintained [4]. Core Views - The company reported Q2 2024 retail data, with Anta/FILA/other brands' revenue growing by high single/mid single/40%-45% year-on-year. Anta's brand performance met expectations, while FILA's performance was slightly below expectations, and other brands exceeded expectations [5]. - Anta's channel performance shows differentiation, with e-commerce continuing to grow significantly. The overall consumption power remains weak, and the low-tier market channel structure transformation poses challenges for Anta's street stores in lower-tier cities [5]. - FILA's children's clothing performance was weak, but online sales continued to grow. The children's market is becoming saturated, leading to a slight decline in FILA Kids' revenue [5]. - Inventory levels are healthy, with discounts remaining stable year-on-year. Anta and FILA have effectively controlled discounts and inventory, with a stock-to-sales ratio below 5, indicating sustained high-quality growth [5]. - Looking ahead to H2, the launch of Anta's Irving and Olympic series products, along with the introduction of cost-effective products like PG7, is expected to drive growth. FILA's store image upgrades and focus on tennis and golf categories are anticipated to accelerate growth [5]. - The company forecasts net profits of 11.884 billion, 13.684 billion, and 15.355 billion for 2024-2026, representing year-on-year growth of 16%, 15%, and 12%, respectively. The current price corresponds to P/E ratios of 16, 13, and 12 [5][8].