Investment Rating - The report assigns a target price of HKD 121.2 for Anta Sports (2020.HK), indicating a potential upside of 19.3% from the current price of HKD 101.6 [1]. Core Insights - Anta's management has adjusted the annual revenue guidance for the Anta brand from high single-digit growth to mid single-digit growth due to weaker retail performance in July and August, although recent trends show improvement [4]. - The company continues to optimize and upgrade its channels, focusing on enhancing store efficiency rather than significantly increasing the number of stores [4]. - Anta's multi-brand strategy is deepening, with other brands like Descente and Kolon showing strong revenue growth, contributing to overall profitability [4]. - The first half of 2025 saw a 14.5% year-on-year increase in net profit to RMB 7.03 billion, aligning with market expectations [5]. Financial Performance - Revenue for 2023 is projected at RMB 62.36 billion, with a year-on-year growth of 16.2%, and expected to reach RMB 80.95 billion by 2025 [6]. - The net profit for 2023 is estimated at RMB 10.24 billion, reflecting a significant year-on-year increase of 34.9% [6]. - The operating profit margin for the first half of 2025 is reported at 26.3%, indicating operational efficiency improvements [9]. Brand Performance - The Anta brand's gross margin decreased by 1.7 percentage points due to a higher proportion of e-commerce sales, while the operating profit margin increased by 1.5 percentage points, aided by government subsidies [5]. - The Fila brand's gross margin fell by 2.2 percentage points, primarily due to increased retail discounts [5]. - Other brands, including Descente and Kolon, experienced a 61% year-on-year revenue growth in the first half of 2025, contributing to 19% of total revenue [4]. Market Position - Anta's market capitalization stands at HKD 285.213 billion, with an average daily trading volume of HKD 876.3 million over the past three months [1]. - The stock has traded within a 52-week range of HKD 68.35 to HKD 107.5, reflecting market volatility [1].

Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020.HK) and raises the target price to HKD 118.8, indicating a potential upside of 21.3% from the current price of HKD 97.9 [2][5]. Core Insights - Despite facing significant pressure on profit margins in the short term, Anta's revenue from its main brand is expected to steadily expand, with other brands maintaining rapid growth. The contribution from Amer Sports is projected to significantly increase, supporting a high growth rate in core net profit by 2025. The multi-brand strategy is anticipated to continue driving overall revenue expansion for the company [1][7][8]. Financial Projections - Revenue is forecasted to grow from RMB 62,356 million in 2023 to RMB 78,838 million in 2025, reflecting a compound annual growth rate (CAGR) of 11.3% [9][13]. - The net profit attributable to shareholders is expected to decrease from RMB 15,596 million in 2024 to RMB 13,965 million in 2025, indicating a decline of 10.5% [9][13]. - The gross margin is projected to remain stable around 62.5% in 2025, with operating profit margin slightly declining to 23.2% [11][12]. Brand Performance - Anta's brand revenue is expected to grow at a high single-digit percentage in 2025, while Fila is projected to grow in the mid-single digits. Other brands like Descente and Kolon are anticipated to exceed 30% growth [7][8]. - The online sales channel is expected to continue to grow, contributing to the overall revenue but also leading to increased discounting pressures on margins [7][8]. Market Strategy - Anta plans to increase market investments in 2025, focusing on expanding the new retail formats, enhancing overseas market presence, and increasing product launches. The company aims for overseas revenue to account for 15% within five years [7][8]. - The multi-brand strategy is expected to be a key driver for long-term revenue growth, with Descente and Kolon brands showing strong growth momentum [7][8].

Investment Rating - The report maintains a "Buy" rating for Anta Sports (2020.HK) and raises the target price to HKD 118.8, indicating a potential upside of 21.3% from the current price of HKD 97.9 [1][2]. Core Views - Despite facing significant pressure on profit margins in the short term, Anta's revenue from its main brand is expected to steadily expand, with other brands maintaining rapid growth. The contribution from Amer Sports is anticipated to significantly increase, supporting a high growth rate in core net profit by 2025. The multi-brand strategy is expected to continue driving overall revenue expansion for the company [1][7]. Financial Projections - Revenue is projected to grow from RMB 62,356 million in 2023 to RMB 78,838 million in 2025, reflecting a compound annual growth rate (CAGR) of 11.3% [9][13]. - The net profit attributable to shareholders is expected to decrease from RMB 15,596 million in 2024 to RMB 13,965 million in 2025, indicating a decline of 10.5% [9][13]. - The gross margin is projected to remain stable around 62.5% in 2025, with operating profit margin slightly declining to 23.2% [11][13]. Brand Performance - The management anticipates that the Anta brand's revenue will grow at a high single-digit percentage in 2025, while Fila is expected to see mid-single-digit growth. Other brands like Descente and Kolon are projected to exceed 30% growth [7][15]. - The online sales channel is expected to continue driving revenue growth for Fila, which is projected to contribute 40% of its revenue in 2024, up from 35% in 2023 [7][11]. Market Strategy - Anta plans to increase market investments in 2025, focusing on expanding the new retail format (Super Anta stores), enhancing overseas market presence, and increasing sponsorship for domestic events [7][11]. - The multi-brand strategy is expected to be a key driver for long-term revenue growth, with Descente and Kolon brands contributing 15% of the group's revenue in 2024 [7][11].