2024-08-29 01:14Investment Rating - The report maintains a "Buy" rating for Anta Sports [4][6] Core Views - Anta Sports' mid-year performance significantly exceeded expectations, with total revenue of 33.7 billion RMB, a year-on-year increase of 14%, and a net profit of 7.7 billion RMB, up 63% year-on-year. Excluding a one-time investment gain of 1.6 billion RMB from the IPO of Amer Sports, net profit grew 17% to 6.2 billion RMB, driven by improved gross margins and effective cost control [4][5][6] - The company announced a share buyback plan of up to 10 billion HKD over the next 18 months, reflecting confidence in its long-term development [6] - The main brand and outdoor brands showed robust growth, while FILA's growth expectations were slightly adjusted downwards [5][6] Summary by Sections Financial Performance - In H1 2024, Anta's main brand revenue reached 16.08 billion RMB, a 13.5% increase year-on-year, with a gross margin of 56.6% [5] - FILA brand revenue was 13.06 billion RMB, up 6.8% year-on-year, with a gross margin of 70.2% [5] - Other brands generated 4.6 billion RMB in revenue, a 42% increase year-on-year, with a gross margin of 72.7% [5] Channel Performance - E-commerce revenue grew 25% year-on-year, accounting for 33.8% of total revenue [5] - Over 80% of Anta's adult and children's stores have adopted a Direct-to-Consumer (DTC) model, enhancing operational efficiency [5] Inventory and Profitability - Inventory turnover days decreased to 114 days, indicating healthy inventory management [5] - The overall gross margin improved to 64.1%, with a net profit margin of 18.3%, the highest in history [5][11] Future Outlook - Anta aims for a 10-15% revenue growth for the main brand in 2024, while FILA's growth is expected to be in the high single digits [5][6] - The company has adjusted its profit forecasts for 2024-2026, with net profits projected at 13.86 billion RMB, 13.92 billion RMB, and 15.43 billion RMB respectively [6][14]