Orient Securities·2024-09-02 08:48Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 102 HKD based on a 19x PE valuation for 2024 [2][3][6]. Core Insights - The company reported a revenue of 33.74 billion, a year-on-year increase of 13.8%, and a net profit attributable to shareholders of 7.72 billion, up 62.6%. Excluding the impact of joint ventures and the gain from Amer's listing, the net profit was 6.16 billion, reflecting a 17% year-on-year growth [1][6]. - Anta's main brand saw revenue growth of 13.5% to 16.08 billion, with direct-to-consumer (DTC) and online sales growing by 10.5% and 20.1%, respectively. The company opened 73 new stores, bringing the total to 9,904 [1][6]. - FILA brand revenue increased by 6.8% to 13.06 billion, with a gross margin improvement to 70.2%. The operating profit margin decreased slightly to 28.6% due to increased advertising expenses [1][6]. - Other brands achieved a revenue of 4.6 billion, a significant year-on-year growth of 41.8%, maintaining a high operating profit margin of 29.9% [1][6]. - The company announced a share buyback plan of up to 10 billion HKD over 18 months, indicating confidence in future operations [1][6]. Financial Summary - The company expects earnings per share (EPS) for 2024, 2025, and 2026 to be 4.91, 5.04, and 5.80 CNY, respectively [2][6]. - Revenue projections for 2024-2026 are 70.11 billion, 78.32 billion, and 87.19 billion CNY, with year-on-year growth rates of 12.4%, 11.7%, and 11.3% [5][6]. - The gross margin is projected to improve from 62.6% in 2023 to 63.2% in 2024, while the net profit margin is expected to rise from 16.4% to 19.8% [5][6].