Investment Rating - The report assigns a "Buy" rating to the company, with a current price of HKD 19.00 and a fair value of HKD 20.22 [5]. Core Insights - The launch of the Honor Gold Standard product series and the new "Dragon Store" concept is expected to drive brand performance growth. The Dragon Store aims to create a space that integrates product experience, emotional resonance, and cultural exchange, while the Honor Gold Standard series focuses on multifunctional and versatile designs for various scenarios [9]. - The company anticipates that the synergy between the Honor Gold Standard series and the Dragon Store will contribute to revenue growth in 2026, targeting high-quality consumer segments with diverse needs [9]. - Profit forecasts indicate that the company's net profit attributable to shareholders is expected to be CNY 2.472 billion in 2025, CNY 2.634 billion in 2026, and CNY 2.828 billion in 2027, with a reference PE of 18 times for 2026 [9]. Financial Summary - Main revenue projections for the company are as follows: - 2023: CNY 27,598 million - 2024: CNY 28,676 million - 2025: CNY 28,986 million - 2026: CNY 30,325 million - 2027: CNY 32,871 million - The growth rates for main revenue are projected at 7.0% for 2023, 3.9% for 2024, 1.1% for 2025, 4.6% for 2026, and 8.4% for 2027 [4]. - The company's EBITDA is forecasted to be CNY 5,814 million in 2023, declining to CNY 5,631 million in 2025, and then increasing to CNY 6,736 million by 2027 [4]. - The net profit attributable to shareholders is projected to decline from CNY 3,187 million in 2023 to CNY 2,472 million in 2025, before recovering to CNY 2,828 million in 2027 [4]. - The report also highlights key financial ratios, including a projected ROE of 9.0% in 2025 and an EV/EBITDA ratio of 6.4 in 2025 [4].

Core Viewpoint - The outdoor brand Arc'teryx, owned by Amer Sports Corporation, faced significant backlash and a stock price drop due to a controversial fireworks event in the Himalayas, resulting in a market value loss of 15 billion yuan [2][20]. Company Overview - Arc'teryx is a high-end outdoor apparel brand based in Canada, with its parent company Amer Sports headquartered in Helsinki, Finland. Amer Sports is set to go public in the U.S. in 2024, with a market capitalization exceeding 20 billion USD as of the last trading day [3]. - The brand has gained immense popularity in China, with discussions around "Arc'teryx" reaching 1.54 billion views on social media platforms like Xiaohongshu [3]. Product Pricing and Quality Issues - Arc'teryx products are positioned in the mid-to-high price range, with jackets priced between 4,500 yuan and 20,000 yuan. A limited edition jacket for the Year of the Dragon was sold for 8,200 yuan, with resale prices reaching up to 12,000 yuan [3]. - Despite the high prices, there have been numerous quality complaints from consumers, leading to a perception that high price does not equate to high quality [3]. Financial Performance - Amer Sports reported a revenue of 5.183 billion USD in 2024, marking an 18% year-on-year increase, with operating profit rising 56% to 471 million USD. The fourth quarter saw a 29% revenue growth for Arc'teryx, contributing to a 33% increase in the outdoor apparel segment [15]. - In the first half of 2025, Amer Sports' revenue grew by 23% to 2.709 billion USD, with adjusted net profit increasing by 146% to 184 million USD [16]. Market Dynamics - The Greater China region has shown significant growth, with revenues increasing by over 40% in both 2024 and the first half of 2025, largely driven by Arc'teryx's performance [17]. - However, there are signs of slowing growth in Arc'teryx's revenue, with the technical apparel segment experiencing a decline in revenue growth for three consecutive years [17]. Management Changes - Recent leadership changes at Amer Sports include the appointment of Jeffery Ma as the new president for Greater China, effective July 1, 2025. He replaces Yao Jian, who previously led the brand to significant growth in the region [11][14]. - The company has acknowledged the contributions of Yao Jian in establishing Amer Sports as a leading sports goods company in Greater China [13]. Stock Market Reaction - Following the controversy, Amer Sports' stock price dropped over 11% in pre-market trading, with a market capitalization loss of approximately 2.15 billion USD (around 15.3 billion yuan) [20].