ANTA SPORTS(02020) 海通国际·2024-03-28 16:00Investment Rating - Maintains an Outperform rating with a target price of HK83.20 [3][5] Core Views - Anta Sports' 2023 revenue of RMB 62.36 billion (+16.2% YoY) met market expectations, with FILA and other brands surpassing the main Anta brand in revenue [4][8] - Net profit in 2023 reached RMB 10.24 billion (+34.9% YoY), exceeding market expectations but in line with the report's forecasts [4][8] - The company plans to increase marketing efforts in 2024, focusing on basketball, running, Olympic promotions, and children's products to drive brand growth [4][8] Financial Performance - Revenue for 2024-2026 is projected to grow at a low double-digit rate, with expected revenues of RMB 69.89 billion, RMB 78.29 billion, and RMB 87.69 billion, respectively [5][9] - Net profit for 2024-2026 is forecasted at RMB 13.2 billion, RMB 14.34 billion, and RMB 16.59 billion, with YoY growth rates of 29%, 8.6%, and 15.7%, respectively [5][9] - Gross margins for Anta, FILA, and other brands are expected to remain strong, with slight improvements in 2024 [4][9] Brand Performance - Anta brand revenue in 2023 was RMB 30.31 billion (+9.3% YoY), while FILA and other brands grew by 16.6% and 57.7%, respectively [4][8] - FILA's gross margin improved by 2.6 percentage points to 69.0%, driven by better discount rates and product mix [4][8] - Other brands, including Descente and Kolon, achieved record store efficiencies, with Descente surpassing RMB 5 billion in revenue [4][8] Growth Drivers - Anta's basketball series, led by the Kyrie Irving line, is expected to boost global brand recognition [4][8] - The company's sponsorship of the Paris Olympics will enhance its global brand image [4][8] - FILA's expansion in golf, tennis, and fashion categories is expected to drive further growth in 2024 [4][8] Valuation - The company is valued at 22x PE for 2024, with a target price of HK$113.1, reflecting its strong multi-brand platform and global operational capabilities [5][9]