Orient Securities·2026-03-26 15:04Investment Rating - The report maintains a "Buy" rating for Anta Sports (02020.HK) with a target price of HKD 102.6 [1][8]. Core Views - Anta Sports has shown steady growth in its operations, with a revenue increase of 13.26% in 2025, although net profit decreased by 12.88% [7]. - The main brand, Anta, faces challenges in a competitive market but is expected to maintain low single-digit growth in 2026, while FILA and other brands are projected to grow at 5% and over 20% respectively [7][8]. - The company is focused on multi-brand internationalization, which is expected to enhance its resilience against industry cycles despite short-term integration costs from recent acquisitions [7]. Financial Performance Summary - Revenue projections for 2025-2027 are adjusted to HKD 80.219 billion, HKD 87.728 billion, and HKD 95.184 billion respectively, with year-on-year growth rates of 13.3%, 9.4%, and 8.5% [6][8]. - Operating profit is expected to grow to HKD 19.091 billion in 2025, with a margin increase to 22.5% [6]. - Net profit attributable to shareholders is forecasted at HKD 13.588 billion for 2025, reflecting a decline of 12.9% from the previous year [6][7]. - Earnings per share (EPS) are projected to be HKD 4.86, HKD 5.00, and HKD 5.48 for 2025, 2026, and 2027 respectively [6][8]. Market Position and Strategy - Anta's market share in the Chinese sports market has increased to 21.8% [7]. - The company is actively pursuing product and channel innovations to drive growth, particularly in its main brand [7]. - Recent acquisitions, including a stake in PUMA, are part of a strategy to enhance its multi-brand portfolio and international presence [7].