ANTA SPORTS(HK:02020) Tai Ping Yang·2025-03-21 22:20Investment Rating - The report maintains a "Buy" rating for Anta Sports (02020) with a target price based on the last closing price of 93.15 HKD [1][11]. Core Insights - Anta Sports reported a revenue of 70.83 billion CNY for 2024, representing a year-on-year increase of 13.6%. The net profit attributable to shareholders was 15.6 billion CNY, up 52% year-on-year, excluding one-time gains from Amer Sports' listing [4][11]. - The company plans to distribute a dividend of 2.36 HKD per share, with a payout ratio of 51.4% [4]. Summary by Sections Financial Performance - Anta's revenue growth exceeded expectations, with a notable performance from its outdoor brands [4]. - The revenue breakdown shows Anta brand grew by 10.6% to 33.5 billion CNY, while FILA increased by 6.1% to 26.63 billion CNY. Other brands saw a significant growth of 54% to 10.7 billion CNY [5][6]. Brand Performance - Anta brand maintained a double-digit growth, while FILA focused on high-quality growth. Other brands continued to show strong growth [5]. - The introduction of new retail formats and successful product launches, such as the PG7 running shoes, contributed to the brand's performance [5]. Channel Performance - Online sales increased by 21.8%, accounting for 35.1% of total revenue. The offline channel also saw growth with a net increase in store count [6]. - Amer Sports turned profitable, with a revenue increase of 18% to 5.18 billion USD, led by strong performance in the Greater China region [6]. Operational Efficiency - The gross margin slightly decreased to 62.2%, attributed to changes in product and channel mix. Marketing and R&D expenses increased, reflecting the company's commitment to innovation and brand promotion [7]. - The company maintained a healthy cash flow with a net cash position of approximately 31.4 billion CNY [7]. Future Outlook - The company expects continued growth in 2025, with Anta brand projected to grow in high single digits, FILA in mid-single digits, and other brands over 30% [10]. - The management's confidence is reflected in a 10 billion HKD share buyback plan, with 2 billion HKD already executed [10]. Earnings Forecast - The forecast for 2025 indicates a net profit of 13.6 billion CNY, with a projected PE ratio of 18 times [12].