Core Viewpoint - The company reported a revenue of 38.544 billion yuan for the first half of 2025, representing a year-on-year growth of 14.3%, while the net profit attributable to shareholders decreased by 8.9% to 7.031 billion yuan. Excluding one-time gains from the Amer listing, net profit actually increased by 14.5% [1][4]. Group 1: Company Performance - In H1 2025, the company's revenue reached 38.544 billion yuan, with a year-on-year increase of 14.3%. The e-commerce channel revenue grew by 17.6%, accounting for 34.8% of total revenue, an increase of 1.0 percentage points [1]. - The company's net profit attributable to shareholders was 7.031 billion yuan, down 8.9% year-on-year. However, excluding the one-time gain from the Amer listing, net profit increased by 14.5% [1][4]. - The overall gross profit margin decreased by 0.7 percentage points to 63.4%, primarily due to the lower margins from e-commerce and increased contributions from footwear products [4]. Group 2: Brand Performance - Anta brand revenue grew by 5.4% to 16.95 billion yuan in H1 2025, with direct-to-consumer (DTC) and e-commerce channels showing growth of 5.3% and 10.1%, respectively [2]. - FILA brand achieved a revenue of 14.18 billion yuan, up 8.6% year-on-year, but experienced a decline in gross margin by 2.2 percentage points to 68.0% due to increased costs from enhancing product functionality [3]. - Other brands, including Descente and KOLON SPORTS, saw a significant revenue increase of 61.1% to 7.41 billion yuan, with gross margin improving by 1.2 percentage points to 73.9% [3]. Group 3: Financial Metrics - The company proposed an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1]. - The average inventory turnover days increased by 22 days to 136 days in H1 2025, indicating a potential challenge in inventory management [4]. - The net cash balance at the end of H1 2025 was 31.539 billion yuan, reflecting a strong liquidity position [4].

Investment Rating - The investment rating for the company is "Buy-A" (maintained) [1] Core Views - The company reported a revenue of 38.544 billion yuan for the first half of 2025, representing a year-on-year growth of 14.3%, while the net profit attributable to shareholders decreased by 8.9% to 7.031 billion yuan [2][4] - The company plans to distribute an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [2] - The growth in outdoor brands is strong, and the effects of refined operational management are becoming evident [1] Revenue and Profitability - In the first half of 2025, the company's revenue reached 38.544 billion yuan, with a year-on-year increase of 14.3%. Excluding the one-time gain from Amer's listing, the revenue and performance showed good growth [4] - The e-commerce channel revenue grew by 17.6% year-on-year, accounting for 34.8% of total revenue, an increase of 1.0 percentage points [4] - The overall gross profit margin decreased by 0.7 percentage points to 63.4%, primarily due to the lower margin from e-commerce and increased contributions from footwear products [9] Brand Performance - Anta brand revenue increased by 5.4% to 16.95 billion yuan in the first half of 2025, with direct-to-consumer (DTC) model, e-commerce, and traditional wholesale revenues growing by 5.3%, 10.1%, and declining by 10.6% respectively [5] - FILA brand revenue grew by 8.6% to 14.18 billion yuan, but the gross profit margin decreased by 2.2 percentage points to 68.0% due to increased costs from enhancing product functionality [6] - Other brands, including Descente and KOLON Sports, saw a revenue increase of 61.1% to 7.41 billion yuan, with gross profit margin improving by 1.2 percentage points to 73.9% [7] Financial Forecasts - The company is expected to achieve earnings per share (EPS) of 4.97, 5.65, and 6.55 yuan for the years 2025, 2026, and 2027 respectively [11] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 17.6, 15.5, and 13.4 times respectively [11] - Revenue forecasts for the years 2025 to 2027 are 78.943 billion yuan, 88.275 billion yuan, and 98.821 billion yuan, with year-on-year growth rates of 11.5%, 11.8%, and 11.9% respectively [13]

Core Viewpoint - Company has maintained revenue growth despite challenges in the apparel industry, focusing on design, brand investment, and terminal operation management [1] Group 1: Financial Performance - In Q1 2025, the company's net profit attributable to shareholders increased by 40.24% year-on-year to 40.94 million yuan, driven by steady domestic market growth and effective cost control [1] - Online sales for 2024 are projected to grow by 32% to 521 million yuan, with online sales accounting for 17.4% of total revenue, an increase of 3.7 percentage points from the previous year [2] - In Q1 2025, online revenue continued to grow, with a year-on-year increase of 26% in comparable terms, and significant growth in various brands, including ELLASSAY (23%), Laurèl (25%), self-portrait (31%), and IRO (62%) in China [2] Group 2: Strategic Initiatives - The company is committed to a multi-brand, multi-platform development strategy, enhancing e-commerce operational capabilities to increase the proportion of e-commerce revenue [2] - 2025 is designated as a cost-reduction year, with strict control over expenses, including production, supply chain, sales, and management costs [3] - Future profit growth is expected to be driven by same-store sales growth, quality expansion of brand stores, online growth potential, and the continuous expansion of multi-brand and product lines [3] Group 3: Industry Outlook - The chairman of the company believes that the apparel industry will continue to be significant, with consumer demand evolving towards brand-oriented and personalized needs [3] - The industry is expected to develop in two directions: affordable basic needs and high-end, branded, quality, and personalized consumption upgrades [3]