Amer Sports(US:AS) GUOTAI HAITONG SECURITIES·2025-06-11 07:01Investment Rating - The report assigns an "Accumulate" rating for Amer Sports [1] Core Views - The company is positioned in the high-end multi-brand outdoor sports segment, with strong growth potential driven by its core brands and strategic expansion in the Greater China region [3][6] - The financial outlook is positive, with projected net profits for 2025 and 2026 expected to reach $447 million and $566 million, respectively, reflecting significant growth [6] Financial Summary - Revenue is projected to grow from $3,549 million in 2022 to $8,228 million by 2027, with a compound annual growth rate (CAGR) of 17.4% [5] - Gross profit is expected to increase from $1,764 million in 2022 to $4,740 million in 2027, indicating a strong upward trend in profitability [5] - The company is forecasted to achieve a net profit of $73 million in 2024, transitioning from losses in previous years [5] Market and Brand Positioning - Amer Sports has streamlined its brand matrix post-acquisition, focusing on high-potential brands like Arc'teryx, Salomon, and Wilson, which are expected to drive revenue growth [10][12] - The company has seen a significant increase in market share in China, with revenue from the Greater China region increasing sixfold from 2020 to 2024 [6][16] - Direct-to-consumer (DTC) sales have risen significantly, with DTC revenue expected to grow at an annual rate of 43.8% from 2019 to 2024 [31] Growth Drivers - The outdoor sports market is experiencing robust growth, with the Asia-Pacific region projected to lead the market, driven by increasing consumer interest in outdoor activities [6][18] - The company is expanding its store footprint, particularly in China, where it plans to increase the number of Salomon stores significantly [43][64] - Arc'teryx is expected to double its revenue, supported by a strong product lineup and effective marketing strategies [42][50] Brand Performance - Arc'teryx is leading in the functional apparel category, with a projected revenue of $2,019 million in 2024, reflecting a CAGR of 38% since 2019 [45] - Salomon's footwear segment is expected to see double-digit growth, with a focus on expanding its market presence in key cities [60] - Wilson is recovering from previous inventory challenges and is expected to return to double-digit growth in the near future [64]