Core Viewpoint - The controversy surrounding the "Anatomy of the Ancestor Bird" event has negatively impacted Anta Sports' stock performance and raised concerns about its ESG ratings due to governance and ecological risk management failures [2][3][4][5] Company Performance - Anta Sports' stock price fell by 2.22% on September 22 and continued to decline by 0.95% on September 23, bringing its total market capitalization to 263.2 billion HKD [3] - The company reported a revenue of 38.544 billion CNY in the first half of 2023, a year-on-year increase of 14.3%, while the net profit attributable to shareholders was 7.031 billion CNY, a decrease of 8.9% [7] ESG Considerations - The incident has the potential to negatively affect Anta Sports' ESG ratings, particularly in environmental and governance dimensions, as sub-brands' actions are included in the overall assessment [4][5] - The response to the controversy will significantly influence the extent of the impact on Anta's ESG ratings, with effective remedial actions potentially mitigating negative effects [5] Multi-Brand Strategy - Anta Sports has pursued an aggressive multi-brand acquisition strategy, acquiring brands such as Amer Sports, FILA, and Descente, which has contributed to revenue growth [7][8] - However, the complexity of managing multiple brands has led to increased operational challenges, including a rise in average inventory turnover days to 136 days, an increase of 22 days compared to the previous year [8][9] Market Challenges - The competitive landscape in the sportswear industry is intensifying, with Anta facing challenges in maintaining brand identity and operational efficiency across its diverse portfolio [9][10]

花旗分析师研报表示，负面舆论目前仅限于始祖鸟，该品牌由安踏的联营公司亚玛芬体育所有。分析师 还说，安踏直营的户外品牌迪桑特和可隆受到的影响可能微乎其微。花旗对安踏的评级为买入，目标股 价为111.60港元。 来源：视频滚动新闻 ...

Group 1 - The company achieved a revenue growth of 14.3% in the first half of the year despite a relatively weak domestic discretionary consumption environment, with Anta brand, Fila brand, and other brands growing by 5.4%, 8.6%, and 61.1% respectively [1] - The overall operating profit margin increased by 0.6 percentage points year-on-year, attributed to refined operations, optimized resource allocation, and an increase in government subsidies [1] - Anta and Fila are expected to maintain steady growth, with each brand projected to sustain a scale of around 30 billion, supported by strategies focused on brand innovation and overseas market expansion [2] Group 2 - Other brands, primarily Descente and KOLON, are anticipated to maintain rapid growth, with a projected compound annual growth rate of over 30% in revenue over the next three years, becoming a significant growth driver for the company [2] - The company is recognized as one of the few truly multi-brand, international, and long-term oriented global sportswear leaders, with positive expectations for the integration of the newly acquired Wolf Claw brand [2] - The earnings forecast for the company has been slightly adjusted, with expected earnings per share for 2025-2027 being 4.80, 5.54, and 6.21 RMB respectively, and a target price of 135.86 HKD based on a 26x PE valuation for 2025 [3]

Core Insights - Anta Group's revenue for the first half of 2025 reached RMB 38.54 billion, marking a 14.3% year-on-year increase and setting a new historical high, maintaining its position as the leading sportswear brand in China [2][13] - The combined revenue of Anta Group and Amer Sports exceeded RMB 100 billion, with Anta's revenue surpassing that of its competitors, including Nike China and Adidas China [2][4] Revenue Performance - Anta brand revenue was RMB 16.95 billion, up 5.4% year-on-year; FILA revenue was RMB 14.18 billion, up 8.6%; other brands, including Kolon and Descente, generated RMB 7.41 billion, a significant increase of 61.1% [4] - Amer Sports reported revenue of USD 2.709 billion, a 23.5% increase, with Greater China revenue growing by 42.4% to USD 856 million [4] Store Efficiency and Growth - Anta Group's revenue increased by 163% from RMB 14.669 billion in H1 2020 to RMB 38.544 billion in H1 2025, while the number of stores remained relatively stable, indicating a significant improvement in retail efficiency [6] - New store formats such as "Anta Arena Level" and "FILA Fusion" have enhanced consumer experience and targeted customer engagement [8] Strategic Initiatives - Anta Group emphasizes a strategy of "multi-brand assets + excellent operations + global collaboration" for sustainable growth, including acquisitions of high-potential brands and establishing joint ventures [11] - The acquisition of the German outdoor brand Jack Wolfskin is expected to become a significant revenue growth point in the outdoor sector [11] Research and Development - R&D investment for H1 2025 remained stable at RMB 1 billion, with a cumulative investment of RMB 20 billion over the past decade, and plans for an additional RMB 20 billion over the next five years [12] - Anta Group has established seven design and R&D centers globally, collaborating with over 70 universities and research institutions [12] ESG Performance - Anta Group was included in the Hang Seng ESG 50 Index and ranked in the top 6% of global textile, apparel, and luxury goods companies in the S&P Global Corporate Sustainability Assessment [12] Competitive Landscape - Among China's major sportswear brands, Anta led with a 14.3% revenue growth, while Li Ning reported a 3.3% increase, indicating a strong competitive position [13] - Recent market rumors suggest potential acquisition interest in Puma by Chinese brands, including Anta, although the company has not commented on these speculations [15]

Core Viewpoint - Anta Group reported strong financial results for the first half of the year, with revenue reaching 38.544 billion yuan, a year-on-year increase of 14.3%, and net profit of 7.031 billion yuan, up 14.5% [1][4] Financial Performance - Revenue for the first half of the year was 38.544 billion yuan, representing a 14.3% increase year-on-year [1] - Net profit reached 7.031 billion yuan, marking a 14.5% increase compared to the previous year [1] - Operating profit was 10.131 billion yuan, with a year-on-year growth of 17% [1] - Operating profit margin stood at 26.3%, exceeding market expectations [1] Strategic Focus - The company maintains a "single focus, multi-brand, globalization" strategy, aiming to meet diverse consumer needs across different segments and scenarios [1][4] - Anta and FILA, the two main brands, both achieved revenue exceeding 30 billion yuan, demonstrating resilience and growth above industry averages [4] - Other brands, including Descente and Kolon Sport, also reported strong and high-quality growth [4] Investment and Acquisition Strategy - Anta Group plans to invest in MUSINSA China, holding a 40% stake, to align with young consumer trends and explore the integration of the fashion and sports industries [2][7] - The acquisition strategy focuses on two types of opportunities: acquiring brands with strong value and genes, and investing in high-potential emerging brands [8] - The company emphasizes the importance of not only acquiring well but also managing and collaborating effectively to enhance market competitiveness [8] Long-term Vision - Anta aims to become a world-leading multi-brand sports goods group, contributing to the construction of a strong sports nation in China [6][7] - The company has signed contracts to support 36 Chinese national teams, reflecting its commitment to social responsibility and value creation for stakeholders [6] - Anta's stock has appreciated nearly 20 times since its listing in Hong Kong in 2007, indicating a focus on long-term stakeholder benefits rather than short-term gains [7]

Core Viewpoint - Anta is facing a critical question regarding the continuation of its Direct-to-Consumer (DTC) strategy as both Nike and Adidas are reassessing their own DTC approaches amid slowing growth for Anta [1][3]. Group 1: Anta's Performance and Market Context - Anta's growth has begun to slow down, with its main brand and FILA showing only low to mid-single-digit growth in retail sales for Q2 2025, while emerging brands have seen growth rates of 50% to 65% [6][8]. - The overall sports goods market has been a growth highlight, with retail sales growth of 25.7% in the first five months of the year, compared to 15.2% the previous year [11]. - FILA's performance has been particularly disappointing, with a reported 6.8% growth in H1 2024, significantly lower than the main brand's 13.5% growth [7][10]. Group 2: DTC Strategy Insights - DTC, which allows brands to sell directly to consumers, was initially seen as a way to enhance growth and profitability, but its effectiveness is now under scrutiny as major brands like Nike and Adidas face challenges related to inventory and channel management [9][10]. - The DTC model can significantly increase gross margins by eliminating middlemen, allowing brands to retain a larger share of sales revenue [16][21]. - However, transitioning to a DTC model also increases operational costs, as brands must now cover expenses traditionally borne by distributors, which can pressure net profits if not managed efficiently [22][23]. Group 3: Anta's Unique DTC Approach - Anta's DTC strategy began in 2020 during a challenging market environment, allowing for a smoother transition and testing phase [29][30]. - FILA served as a successful testing ground for DTC, enabling Anta to validate its model with lower costs and risks [31][32]. - Unlike Nike and Adidas, Anta has maintained a higher number of franchise stores compared to direct stores, indicating a more integrated approach to DTC that does not completely abandon distributors [35][36].

Core Viewpoint - The company is experiencing stable growth in its main brand and FILA, while all other brands are showing rapid growth driven by the outdoor sports trend [1][2]. Group 1: Company Performance - In Q2 2025, the main brand recorded low single-digit year-on-year growth, while FILA achieved mid single-digit growth, and all other brands saw a significant increase of 50-55% [1]. - For the first half of 2025, the main brand achieved mid single-digit year-on-year growth, FILA recorded high single-digit growth, and all other brands experienced a growth rate of 60-65% [1]. - The main brand's retail growth in Q2 was slightly below expectations, prompting a focus on the effectiveness of online and offline channel enhancement plans [1]. Group 2: Brand Performance - FILA's Q2 retail growth was in line with expectations, achieving mid single-digit year-on-year growth [2]. - The outdoor industry is thriving, with high demand for premium outdoor brands like Descente and KOLON, contributing to the rapid growth of all other brands [2]. - Maia Active is gaining momentum, with a new endorsement deal and the launch of a Yoga Studio store format expected to enhance brand visibility [2]. Group 3: Profit Forecast and Rating - The company is recognized as a leading player in the sports footwear and apparel industry, with a strong competitive edge and significant growth potential through multi-brand operations and overseas expansion [3]. - Projected net profits for 2025-2027 are 13.5 billion, 15.567 billion, and 17.163 billion respectively, with year-on-year growth rates of -13.44%, 15.31%, and 10.25% [3]. - The company maintains a "buy" rating due to the stability provided by its main brand and FILA, along with growth potential in the outdoor segment [3].

Core Viewpoint - Anta Sports reported mixed performance for Q2 2025, with the main brand showing low single-digit growth, while FILA and other brands experienced higher growth rates, indicating a diversified brand performance strategy [1][2] Group 1: Brand Performance - Anta's main brand recorded low single-digit growth in Q2 2025, slightly below expectations, with children's products performing better than bulk goods [1] - FILA achieved mid-single-digit growth in Q2 2025, meeting expectations, with children's and Fusion products showing strong performance [1] - Other brands experienced a significant growth of 50-55% in Q2 2025, with Descente and KOLON showing over 40% and 70% growth respectively [2] Group 2: Financial Projections - The company forecasts EPS for 2025-2027 to be 4.72, 5.26, and 5.88 CNY respectively, with a target price of 113.6 HKD based on a 22x PE ratio for 2025 [2] Group 3: Strategic Developments - The acquisition of Jack Wolfskin, a German outdoor brand, was completed in Q2 2025, which is expected to enhance Anta's presence in the outdoor market in China [2] - The company is implementing a "lighthouse store plan" to strengthen its offline presence while enhancing online sales strategies [1]

Investment Rating - The investment rating for Anta Sports (02020.HK) is "Buy" (maintained) [1] Core Views - Anta Sports is advancing channel upgrades for its brand, with outdoor brands leading growth [1] - The company aims for high single-digit growth in overall retail sales for the year, despite short-term impacts from store renovations and online competition [8] Financial Forecasts - Total revenue projections (in million RMB) are as follows: - 2023A: 62,356 - 2024A: 70,826 (up 16.23% YoY) - 2025E: 78,173 (up 10.37% YoY) - 2026E: 86,079 (up 10.11% YoY) - 2027E: 94,239 (up 9.48% YoY) [1] - Net profit attributable to shareholders (in million RMB) is projected as: - 2023A: 10,236 - 2024A: 15,596 (up 52.36% YoY) - 2025E: 13,232 (down 15.16% YoY) - 2026E: 14,763 (up 11.57% YoY) - 2027E: 16,431 (up 11.30% YoY) [1] - Earnings per share (EPS) forecast (in RMB) is: - 2023A: 3.65 - 2024A: 5.56 - 2025E: 4.71 - 2026E: 5.26 - 2027E: 5.85 [1] - Price-to-earnings (P/E) ratios are projected as: - 2024A: 14.71 - 2025E: 17.34 - 2026E: 15.54 - 2027E: 13.96 [1] Retail Performance - In Q2 2025, retail sales for Anta brand grew low single digits, while FILA and other brands saw mid single-digit and 50-55% growth respectively [8] - The company is implementing a "lighthouse store plan" to enhance store image in lower-tier cities, which may temporarily affect sales [8] - FILA's performance met expectations with mid single-digit growth in Q2 2025, and other brands maintained rapid growth, particularly benefiting from seasonal trends [8]

Group 1 - Morgan Stanley maintains Anta Sports' target price at HKD 117 and an "Overweight" investment rating [1] - Anta's sales in May showed better growth compared to April, attributed to factors such as the earlier 6.18 shopping festival, increased holidays, and normalized weather [1] - Anta indicated that if demand weakens post the 6.18 shopping festival, it will consider offering more online discounts in June to boost sales [1] Group 2 - The retail sales growth for Anta and FILA is expected to reach 5-9% by Q2 2025, with FILA's growth anticipated to be stronger than Anta's [1] - Morgan Stanley maintains the operating profit margin guidance for Anta/FILA at 20-25%/~25% for 2025, while noting that Descente and KOLON currently have operating profit margins of over 30% and over 20% respectively [1]