EBSCN·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020.HK) with a current price of HKD 83.55 [2]. Core Views - Anta Sports achieved a revenue of HKD 623.56 billion in 2023, representing a year-on-year growth of 16.2%. The net profit attributable to shareholders, including the impact of the joint venture AMER, was HKD 102.36 billion, up 34.9% year-on-year, exceeding expectations [6][10]. - The company is expected to continue its high-quality growth in 2024, driven by its multi-brand strategy and the upcoming Paris Olympics [10][13]. Financial Performance Summary - Revenue and Profit Growth: In 2023, revenue grew by 16.2% year-on-year, while net profit (including AMER) increased by 34.9%. Excluding AMER, net profit rose by 44.9% [6][10]. - Earnings Per Share (EPS): The EPS for 2023 was HKD 3.69, with a proposed final cash dividend of HKD 1.15 per share, leading to an annual payout ratio of 50.7% [6][10]. - Profitability Metrics: The gross margin improved by 2.4 percentage points to 62.6%, and the operating margin increased by 3.7 percentage points to 24.6% [8][9]. - Retail Performance: The main brand Anta, FILA, and other brands saw significant revenue growth, with Anta growing in the mid-single digits to high-teens range throughout the year [6][10]. Brand and Market Strategy - Multi-Brand Strategy: Anta continues to focus on a "single focus, multi-brand, globalization" strategy, enhancing its competitive edge in various market segments [10][11]. - Brand Performance: Anta brand maintained its leading position in the domestic running market, while FILA expanded its presence in high-end fashion sports [10][11]. - Global Expansion: The successful listing of AMER on the NYSE in early 2024 is expected to further support Anta's global expansion efforts [11][12]. Future Outlook - Revenue Projections: The company targets a revenue growth rate of 10-15% for Anta and FILA in 2024, with higher targets for Descente and Kolon [13]. - Store Expansion Plans: Anta plans to increase its store count significantly across its brands, with specific targets set for 2024 [13]. - Profit Forecast Adjustments: The report has raised profit forecasts for 2024 and 2025 by 12% and 2% respectively, reflecting the strong performance and future potential [13][14].