Core Viewpoint - Anta Sports achieved a revenue of 38.54 billion yuan in H1 2025, representing a year-on-year increase of 14.3%, with a net profit of 7.03 billion yuan, also up by 14.5%, exceeding expectations [1][2] Group 1: Financial Performance - The company plans to distribute a mid-term dividend of 3.53 billion yuan, with a payout ratio of 50% [1] - Anta's operating profit margin (OPM) reached 26.3%, an increase of 0.6 percentage points year-on-year [1] - The revenue breakdown for H1 2025 shows Anta brand at 16.9 billion yuan (+5%), FILA at 14.2 billion yuan (+9%), and other brands at 7.4 billion yuan (+61%) [1] Group 2: Brand Performance - FILA and outdoor brands showed strong performance, with FILA's new CEO enhancing brand and retail channel strategies [1][2] - Descente and Kolon maintained high-quality growth due to favorable market conditions and refined operations [1] Group 3: Margin Analysis - Gross profit margins (GPM) for Anta and FILA decreased by 1.7 percentage points and 2.2 percentage points respectively, attributed to increased costs in professional categories and a higher proportion of online sales [2] - Despite GPM pressure, Anta's OPM improved due to increased government subsidies, with OPM expected to remain healthy through refined expense management [2] Group 4: Future Outlook - The company anticipates net profits of 13.4 billion yuan, 15 billion yuan, and 16.8 billion yuan for 2025-2027, reflecting year-on-year growth of 13%, 12%, and 12% respectively [2] - Anta's brand expansion overseas is accelerating, with plans for increased investment in FILA and recent acquisition of the Wolf Paw brand to enhance its brand matrix [2]

Investment Rating - The investment rating for Anta Sports (2020.HK) is "Buy" and is maintained [8]. Core Views - Anta's retail performance in Q2 2025 showed low single-digit growth for the Anta brand, while FILA brand experienced mid-single-digit growth, and other brands grew by 50%-55% year-on-year [2][6]. - The company is facing short-term operational pressure due to intensified competition and discounting, but the long-term outlook remains stable with expected healthy growth in revenue and net profit for H1 2025 [8]. - The forecast for net profit from 2025 to 2027 is projected at 134 billion, 150 billion, and 166 billion respectively, with year-on-year growth rates of 13%, 11%, and 11% [8]. Summary by Sections Retail Performance - Anta's retail performance in Q2 2025 was slightly below expectations, primarily due to adjustments in offline franchise stores and pressure from the 618 sales event [8]. - FILA's performance met expectations, with stable discounts in offline channels and a slight increase in e-commerce discounts [8]. Financial Projections - Total revenue projections for Anta are 70,826 million in 2024, 77,975 million in 2025, 85,282 million in 2026, and 92,167 million in 2027, reflecting growth rates of 13.58%, 10.09%, 9.37%, and 8.07% respectively [10]. - The projected net profit for 2025 is 13,420 million, showing a decrease of 13.95% compared to 2024, followed by increases of 11.47% and 10.93% in the subsequent years [10].