ANTA SPORTS(HK:02020) Shenwan Hongyuan Securities·2026-02-01 09:24Investment Rating - The report maintains a "Buy" rating for Anta Sports, highlighting its strategic acquisition of PUMA as a significant move towards enhancing its global multi-brand strategy [16]. Core Insights - Anta Sports has acquired a 29.06% stake in PUMA for €1.5 billion (approximately ¥12.28 billion), with a valuation of about 15 times P/E, which is expected to strengthen Anta's global presence and support PUMA's growth in the Chinese market [10][22]. - The textile and apparel sector has shown resilience, with the SW textile and apparel index outperforming the SW All A index by 0.9 percentage points during the week of January 26 to January 30, despite a slight decline [3][4]. - The report anticipates a gradual recovery in domestic demand in 2026, with a focus on high-performance outdoor brands and discount retail, suggesting potential investment opportunities in companies like Bosideng, Li Ning, and Anta [10][11]. Summary by Sections Industry Performance - The SW textile and apparel index decreased by 0.7%, while the SW apparel and home textiles index fell by 2.7%, underperforming the SW All A index [3][4]. - In December, China's textile and apparel exports amounted to $25.99 billion, reflecting a year-on-year decline of 7.4%, with apparel exports down by 10.2% [33]. Key Developments - Anta's acquisition of PUMA is a strategic move to enhance its multi-brand global strategy, leveraging PUMA's established market presence and resources in Europe and America [10][14]. - The report highlights the potential for recovery in the women's apparel sector, with companies like Ge Li Si and Xin He expected to turn profitable in 2025 [12][11]. Market Trends - The report notes a significant increase in the price of Australian wool, with the index reaching 1177 cents/kg, a year-on-year increase of 58.6% [40]. - The overall retail sales of clothing, shoes, and textiles in China for 2025 are projected to grow by 3.2% year-on-year, indicating a positive trend in consumer spending [27].