Group 1 - The company reported a revenue of 6.8 billion RMB for H1 2025, representing a year-on-year increase of 7%, with the main brand contributing 6.1 billion RMB, up 5% year-on-year, and the professional sports segment generating 790 million RMB, up 33% year-on-year [1] - Operating profit for the continuing operations was 1.3 billion RMB, a 9% increase year-on-year, while the professional sports segment's operating profit surged by 237% to 80 million RMB [1] - The company recorded a net profit attributable to ordinary shareholders of 900 million RMB for H1 2025, reflecting a year-on-year growth of 21.5% [1] Group 2 - The balance sheet remains robust with a net cash position of 1.9 billion RMB, an increase of 94% year-on-year [1] - The board declared an interim dividend of 0.18 HKD per share, with a payout ratio of 50% [1] - As of June 30, 2025, the company operated 6,360 adult stores and 1,564 youth stores in mainland China, along with 155 stores for the Saucony brand [1] Group 3 - The company is focusing on running to consolidate its market leadership, launching several running shoe models and sponsoring 27 marathons and road races in China [1] - Saucony is undergoing a comprehensive brand repositioning, including flagship store openings and product line upgrades, while also enhancing its brand influence through collaborations and immersive training camps [2] - The company is seizing opportunities in the outdoor sports market and enhancing its basketball brand visibility through various promotional activities and sponsorships [2] Group 4 - The company adjusted its profit forecasts, expecting revenues of 14.6 billion RMB, 15.4 billion RMB, and 16.5 billion RMB for 2025-2027, with net profits of 1.4 billion RMB, 1.52 billion RMB, and 1.7 billion RMB respectively [2] - The corresponding price-to-earnings ratios are projected to be 11.5x, 10.5x, and 9.4x for the same period [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Insights - The company reported a revenue of 6.8 billion RMB for H1 2025, representing a year-on-year increase of 7%, with the main brand contributing 6.1 billion RMB (+5% YoY) and the professional sports segment achieving 790 million RMB (+33% YoY) [1] - Operating profit for continuing operations reached 1.3 billion RMB, up 9% YoY, while the professional sports segment saw a significant increase in operating profit to 80 million RMB, a 237% growth YoY [1] - The company reported a net profit attributable to ordinary shareholders of 900 million RMB for H1 2025, reflecting a 21.5% increase YoY [1] - The balance sheet remains robust with cash and cash equivalents netting 1.9 billion RMB, a 94% increase YoY [1] - The board declared an interim dividend of 0.18 HKD, with a payout ratio of 50% [1] Summary by Sections Brand Development - The company has launched several running shoe models, including the "160X" championship series and "360X 2.0" carbon plate shoes, contributing to athletes' success in marathons [2] - It has strengthened its event sponsorship matrix by partnering with 27 marathon and road running events in China, including several gold standard events [2] - The company showcased its technological prowess by being the official partner and exclusive sports equipment sponsor for the 13th Versailles Royal Run, featuring humanoid robots wearing its high-performance running shoes [2] Market Expansion - The company is seizing opportunities in the outdoor sports market by expanding its product matrix with high-performance products like the "Flying Stone" hiking shoes and "Mountain Cat" trail running shoes [3] - In the basketball sector, the brand ambassador Jeremy Lin has been actively promoting the brand through various events, including store openings and interactive basketball competitions [3] Financial Forecast - The report adjusts the profit forecast for the company, expecting revenues of 14.6 billion RMB, 15.4 billion RMB, and 16.5 billion RMB for 2025-2027, respectively [4] - The net profit attributable to shareholders is projected to be 1.4 billion RMB, 1.52 billion RMB, and 1.7 billion RMB for the same period [4]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's Q2 2025 operational data shows that the main brand achieved low single-digit growth, while FILA and other brands recorded mid to high single-digit growth [2][3] - The report anticipates high single-digit growth for the main brand and mid single-digit growth for FILA in 2025, with KOLON and DESCENTE expected to grow by 30% [4] - The report highlights the potential for KOLON and DESCENTE to enhance their market share and product competitiveness due to favorable outdoor market conditions [4] Summary by Sections Event Overview - In Q2 2025, the main brand, FILA, and other brands recorded low single-digit, mid single-digit, and 50-55% growth respectively [2] - For H1 2025, retail sales for Anta, FILA, and other brands showed mid single-digit, high single-digit, and 60-65% growth year-on-year [2] Analysis and Judgment - The main brand's growth in Q2 2025 slowed compared to Q1 2025 and Q2 2024, attributed to a slowdown in both online and offline sales [3] - FILA's growth in Q2 2025 was driven by improvements in children's and trendy brands, although it showed a slight slowdown compared to Q1 2025 [3] - Other brands like DESCENTE, KOLON, and MAIA experienced 50-55% growth in Q2 2025, which is a decrease from Q1 2025 but an improvement from Q2 2024 [3] Investment Recommendations - The report projects revenue forecasts of 770 billion, 859 billion, and 960 billion for 2025, 2026, and 2027 respectively, with net profit estimates of 138.74 billion, 159.07 billion, and 178.76 billion for the same years [4] - The report maintains EPS forecasts of 4.94, 5.67, and 6.37 for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 17, 15, and 13 [4]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported Q1 2025 operational data showing high single-digit growth for its main brand, FILA, and other brands, which aligns with market expectations. The acquisition of the German outdoor brand Jack Wolfskin for a base price of $290 million is expected to be completed by the end of Q2 or early Q3 2025 [2][3] Summary by Sections Q1 Performance - In Q1 2025, the main brand achieved high single-digit growth, consistent with the annual growth forecast. The growth rate remained stable compared to Q4 2024 and improved from Q1 2024. This growth is attributed to the continuous adjustment of store types, including the opening of new store formats like Super Anta and Anta Champion [3] - FILA also reported high single-digit growth in Q1 2025, exceeding annual growth expectations, with growth rates stable compared to Q4 2024 [3] - Other brands, including Descente, KOLON, and MAIA, experienced growth rates of 65-70% in Q1 2025, up from 50-55% in Q4 2024 and 25-30% in Q1 2024, indicating improvements in both year-on-year and quarter-on-quarter growth [3] Investment Recommendations - The impact of U.S. tax increases on the company is minimal, as overseas revenue accounts for less than 1%. The company anticipates high single-digit growth for the main brand and mid-single-digit growth for FILA in 2025, with KOLON and DESCENTE expected to grow by 30%. The company plans to have a total of 6,900-7,000 Anta stores, 2,600-2,700 Anta Kids stores, 2,100-2,200 FILA stores, and 260-270 DESCENTE stores by the end of 2025 [4] - In the medium to long term, the outdoor market is expected to improve, with KOLON and DESCENTE likely to enhance their core competitiveness and market share. The newly acquired Jack Wolfskin is expected to contribute additional revenue, although there may be short-term integration losses and cost pressures [4] - The company maintains revenue forecasts of 77 billion, 85.9 billion, and 96 billion yuan for 2025, 2026, and 2027, respectively, with net profit forecasts of 13.87 billion, 15.91 billion, and 17.88 billion yuan for the same years. The earnings per share (EPS) are projected to be 4.94, 5.67, and 6.37 yuan for 2025, 2026, and 2027, respectively. The price-to-earnings (PE) ratios for 2025, 2026, and 2027 are expected to be 16, 14, and 12 times, respectively [4][7]