Investment Rating - The report maintains a "Buy" rating for Amer Sports, indicating a strong investment outlook [2][5]. Core Insights - Amer Sports reported Q4 and full-year results that exceeded expectations, with Q4 revenue of $2.1 billion, a year-over-year increase of 28% (26% growth at constant currency). The full-year revenue grew by 27% to $6.57 billion, surpassing previous guidance of 23-24% growth [5]. - The net profit for the year reached $430 million, a staggering increase of 489%, while adjusted net profit grew by 131% to $550 million. The adjusted diluted earnings per share were $0.97, significantly above the prior guidance of $0.88-0.92 [5]. - The company anticipates continued double-digit revenue growth in 2026, projecting a revenue increase of 16-18%, with Q1 expected to grow by 22-24% [5]. Financial Data and Profit Forecast - Revenue projections for FY2024 to FY2028 are as follows: - FY2024: $5,183 million - FY2025: $6,566 million - FY2026E: $7,721 million - FY2027E: $8,914 million - FY2028E: $10,048 million - The expected year-over-year growth rates are 18% for FY2024, 27% for FY2025, 18% for FY2026, 15% for FY2027, and 13% for FY2028 [4]. - Adjusted net profit forecasts are as follows: - FY2026E: $669 million - FY2027E: $822 million - FY2028E: $973 million [4][5]. Business Segment Performance - The three main business segments showed comprehensive growth: - The technology apparel segment (Arc'teryx) generated $2.86 billion in revenue, a 30% increase, with a comparable store growth of 19% [5]. - The outdoor segment (Salomon) achieved $2.4 billion in revenue, up 31%, with a profit margin increase of 3.1 percentage points to 12.5% [5]. - The ball sports segment (Wilson) saw revenue of $1.31 billion, a 13% increase, with a profit margin improvement of 1.6 percentage points to 3.6% [5]. Regional and Channel Performance - All four regions experienced double-digit growth: - Americas: $2.13 billion, up 14% - EMEA: $1.81 billion, up 19% - Greater China: $1.86 billion, up 43% - Asia-Pacific: $770 million, up 51% [5]. - Direct-to-consumer (DTC) sales grew by 42% to $3.21 billion, accounting for 49% of total revenue [5]. Profitability and Inventory Management - The adjusted gross margin for the year was 58.0%, an increase of 2.3 percentage points, with a slight decrease in operating profit margin to 12.8% [5]. - Inventory increased by 33% to $1.62 billion, slightly above the revenue growth rate of 27%, but in line with company expectations [5].

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 113.6, reflecting a potential upside from the current price of HKD 92.45 [6]. Core Insights - Anta's main brand recorded low single-digit growth in Q2 2025, slightly below expectations, while FILA achieved mid-single-digit growth. Other brands saw significant growth of 50-55% [2][3]. - The company has completed the acquisition of Jack Wolfskin, a German outdoor brand, for USD 290 million, which is expected to enhance its presence in the outdoor market in China [3]. - The financial projections for EPS from 2025 to 2027 are estimated at RMB 4.72, RMB 5.26, and RMB 5.88 respectively, indicating a positive growth trajectory despite some fluctuations in profit margins [4][3]. Summary by Sections Brand Performance - Anta's main brand experienced low single-digit growth in Q2 2025, with children's products performing better than bulk items. The overall H1 performance showed mid-single-digit growth [2]. - FILA's Q2 2025 revenue growth was in the mid-single digits, aligning with expectations, while other brands, including Descente and KOLON, reported over 40% and 70% growth respectively [2][3]. Financial Projections - Revenue is projected to grow from RMB 62.36 billion in 2023 to RMB 92.97 billion by 2027, with a compound annual growth rate (CAGR) of approximately 10.8% [4]. - The net profit for 2025 is expected to be RMB 13.25 billion, reflecting a decrease of 15% compared to 2024, followed by a recovery in subsequent years [4]. Valuation Metrics - The report assigns a 2025 PE ratio of 22 times, based on industry averages and brand premium considerations, supporting the target price of HKD 113.6 [3][4]. - The projected gross margin remains stable around 62%, with net profit margins expected to fluctuate between 16.9% and 17.8% over the forecast period [4][11].