2024-08-29 04:16Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020 HK) with a target price of HKD 135.00, indicating a potential upside of 80.4% from the current price of HKD 74.85 [1][2][3]. Core Insights - Anta Sports achieved a notable sales growth of 13.8% year-on-year in the first half of 2024, reaching RMB 33.7 billion. The growth was driven by the performance of Anta, FILA, and other brands, with respective growth rates of 13.5%, 6.8%, and 41.8% [2]. - The company's gross margin improved by 0.8 percentage points to 64.1%, supported by higher gross margins in footwear products and an increased proportion of new products [2]. - The multi-brand management strategy is beginning to yield high-quality growth, with the Champion series under Anta seeing over 20% growth in the first half of the year [2]. - The report anticipates continued growth for Anta's main brand and other brands, with a focus on differentiated store layouts and maintaining double-digit growth guidance [2]. Financial Overview - For the fiscal year ending December 31, 2024, the projected revenue is RMB 71.15 billion, reflecting a year-on-year growth of 14.1% [5]. - The net profit for 2024 is estimated at RMB 13.57 billion, with a significant growth of 36.2% compared to the previous year [5]. - The earnings per share (EPS) for 2024 is projected to be RMB 4.86, with a dividend yield of 3.7% [5][9]. - The company’s market capitalization is approximately HKD 210.44 billion, with a 52-week high of HKD 94.25 and a low of HKD 64.15 [4]. Market Position and Strategy - Anta Sports is focusing on global multi-brand strategies, enhancing competitiveness in niche markets such as golf, urban sports, and tennis through the FILA brand [2]. - The company plans to accelerate the expansion of Descente and Kolon brands in first-tier and new first-tier cities, maintaining sales growth targets of over 20% and 30% respectively [2]. - The report highlights that Anta's main brand has shown resilience with mid-single-digit growth despite high base pressure, and the second quarter has seen an acceleration in growth [2].