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 is "Buy" and is maintained [5]. Core Views - Anta Sports achieved a revenue of 38.54 billion yuan in H1 2025, representing a year-on-year increase of 14.3%. The operating profit margin (OPM) was 26.3%, up 0.6 percentage points year-on-year, and the net profit attributable to shareholders was 7.03 billion yuan, also up 14.5% year-on-year, indicating performance exceeded expectations. The company plans to distribute an interim dividend of 3.53 billion yuan, with a payout ratio of 50% [2][4]. Summary by Sections Performance Overview - In H1 2025, Anta's revenue from its brands was as follows: Anta brand revenue increased by 5% to 16.9 billion yuan, FILA brand revenue increased by 9% to 14.2 billion yuan, and other brands saw a significant increase of 61% to 7.4 billion yuan. The company is experiencing steady growth in the domestic market due to a multi-channel store model, and overseas market expansion is gradually showing results [6]. Gross Profit Margin (GPM) and Operating Profit Margin (OPM) - The GPM for Anta and FILA brands decreased by 1.7 percentage points and 2.2 percentage points respectively. The decline in Anta's GPM is attributed to increased costs in professional categories and a higher proportion of online business. However, the OPM for Anta and FILA brands increased by 1.5 percentage points and decreased by 0.9 percentage points to 23.3% and 27.7% respectively. Government subsidies contributed positively to Anta's OPM performance [6]. Long-term Growth Path - Despite short-term pressures from increased competition and ongoing investments, Anta's long-term growth trajectory remains clear. The company is accelerating its international expansion, and the recent acquisition of the Wolf Claw brand is expected to enhance its brand portfolio. Projections for net profit attributable to shareholders for 2025-2027 are 13.4 billion yuan, 15 billion yuan, and 16.8 billion yuan, representing year-on-year growth of 13%, 12%, and 12% respectively [6][8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][10] Core Views - The report highlights a stable performance in H1 2025, with a revenue of 38.54 billion, representing a year-on-year increase of 14.3%, while the net profit attributable to the parent company was 7.03 billion, down 8.9% year-on-year, but adjusted for the impact of Amer Sports' listing, it shows a 14.5% increase [4][6] - The company is optimistic about the development of its multi-brand matrix, with strong growth in outdoor brands and a focus on refined store operations [6][9] Financial Performance Summary - In H1 2025, the company's revenue by brand showed a year-on-year increase: Anta brand revenue increased by 5.4% to 16.95 billion, FILA brand revenue increased by 8.6% to 14.18 billion, and other brands saw a significant increase of 61.1% to 7.41 billion [6] - The gross profit margin slightly decreased by 0.7 percentage points to 63.4%, primarily due to a decline in Anta's gross margin by 1.7 percentage points to 54.9% and a decrease in FILA's gross margin by 2.2 percentage points to 68% [6] - The operating profit margin increased by 0.6 percentage points to 26.3%, while the adjusted net profit margin decreased by 1.2 percentage points to 17.1% [6] Store Network and Operational Efficiency - As of H1 2025, the company operated 7,187 Anta stores, 2,722 Anta Kids stores, 2,054 FILA stores, 241 Descente stores, 199 Kolon stores, and 50 MAIAACTIVE stores, indicating a strategic focus on enhancing store efficiency and consumer experience [7] - The average inventory turnover days increased by 22 days to 136 days, while accounts receivable turnover days remained stable at 19 days, and accounts payable turnover days also remained stable at 52 days [6] Future Earnings Forecast - The company is projected to achieve revenues of 79.56 billion, 88.05 billion, and 97.57 billion for 2025, 2026, and 2027 respectively, with growth rates of 12%, 11%, and 11% [9][10] - The net profit attributable to the parent company is expected to be 13.52 billion, 15.34 billion, and 17.05 billion for the same years, with a decrease of 13% in 2025 followed by increases of 13% and 11% in subsequent years [9][10]

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]

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].

Core Insights - Anta Sports achieved a revenue of 38.544 billion yuan in the first half of 2025, representing a year-on-year growth of 14.3%, while net profit attributable to shareholders decreased by 8.9% due to non-recurring gains in the previous year [2] - The growth dynamics within Anta's business segments have shifted, with the "Other Brands" segment (including Descente and Kolon) experiencing a significant revenue increase of 61.1% to 7.412 billion yuan, contrasting with slower growth in the main brands [3][4] Revenue Breakdown - Anta's main brand and FILA accounted for 44% and 37% of total revenue, respectively, but both experienced slower growth than the overall company growth rate [2] - Anta's main brand revenue was 16.95 billion yuan, growing by 5.4%, while FILA's revenue was 14.182 billion yuan, growing by 8.6%, marking a decline from previous double-digit growth rates [2][3] E-commerce Performance - E-commerce revenue constituted 34.8% of total revenue, up from 33.8% in the previous year, with online sales increasing by 17.6% year-on-year [3] - However, the expansion of e-commerce has led to a decline in overall gross margin by 0.7%, with both main brands experiencing a drop in gross margin [3][4] Strategic Developments - Anta Sports is advancing its "single focus, multi-brand, globalization" strategy, successfully localizing international brands like Arc'teryx and Descente [4] - The acquisition of Jack Wolfskin for $290 million is aimed at enhancing Anta's international operational capabilities, with the brand positioned between mass and premium markets [4] New Investments - Anta announced a joint investment with Korean fashion group MUSINSA to establish a new company, MUSINSA China, with Anta holding a 40% stake [4][5] - This partnership aims to tap into the trend of merging sports and fashion, targeting younger consumers and expanding Anta's market presence [6][7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The outdoor trend is driving high growth for the company's other brands, while the main brand's efficiency improvements are being monitored [5] - The company has shown stable performance from its main brand and FILA, with all other brands experiencing rapid growth [7] - The company is expected to maintain a strong growth trajectory due to its multi-brand strategy and overseas expansion potential [7] Financial Performance Summary - Revenue projections for 2023 to 2027 are as follows: - 2023: 62,356 million RMB - 2024: 70,826 million RMB (growth of 16.23%) - 2025E: 78,944.69 million RMB (growth of 11.46%) - 2026E: 87,795.88 million RMB (growth of 11.21%) - 2027E: 96,556.82 million RMB (growth of 9.98%) [6] - Net profit projections for the same period are: - 2023: 10,236 million RMB - 2024: 15,596 million RMB (growth of 52.36%) - 2025E: 13,500.18 million RMB (decline of 13.44%) - 2026E: 15,567.18 million RMB (growth of 15.31%) - 2027E: 17,163.18 million RMB (growth of 10.25%) [6] - Earnings per share (EPS) are projected to be: - 2023: 3.69 RMB - 2024: 5.55 RMB - 2025E: 4.81 RMB - 2026E: 5.55 RMB - 2027E: 6.11 RMB [6] Brand Performance Summary - In Q2 2025, the main brand recorded low single-digit growth, while FILA achieved mid-single-digit growth, and all other brands saw growth of 50-55% [7] - The main brand's growth is expected to improve in the second half of the year due to operational efficiency initiatives [7] - The outdoor segment remains strong, with high demand for premium outdoor brands like Descente and Kolon [7]

Core Viewpoint - Anta Group achieved double-digit revenue growth in Q2 2025, with the main brand, FILA, and other brands showing varying growth rates, indicating a strong operational performance despite a challenging retail environment [1][2]. Group 1: Revenue Performance - Anta Group's overall revenue grew by double digits in Q2 2025, with the main brand experiencing low single-digit growth, FILA achieving mid-single-digit growth, and other brands growing by 50-55% [1]. - Specific brand performances include Descente growing over 40%, KOLON growing over 70%, and other brands growing over 30% [1]. Group 2: Operational Strategies - The main brand's online and offline operations are being optimized, with a focus on low-tier store renovations and a new e-commerce head appointed to enhance operational efficiency [2]. - The company is implementing a "lighthouse" plan to empower low-tier franchisees with direct-to-consumer (DTC) experience [2]. Group 3: New Business Developments - Anta's new business initiatives are progressing well, with 17 new Champion stores opened in H1 2025, nearing a total of 100 stores [2]. - The Anta SV collection opened 12 new stores, reaching a total of 62, targeting young trendsetters in first and second-tier cities [2]. - The Super Anta brand opened 20 new stores, with ongoing optimization of its business model [2]. Group 4: FILA Brand Performance - FILA's performance met company expectations, with significant growth in e-commerce and strong sales in tennis and golf categories [2]. - The brand is deepening its focus on fashion sports, with new product lines set to launch in Q3 2025 [2]. Group 5: Other Outdoor Brands - Other outdoor brands are expected to maintain strong momentum in H2 2025, with Descente's revenue growth nearing 50%, KOLON's growth over 80%, and MAIA ACTIVE's growth over 30% in H1 2025 [3].

Core Viewpoint - Anta's main brand revenue growth in Q2 2025 is low single digits, with a slowdown in growth rate compared to previous quarters, primarily due to optimization of franchise stores in lower-tier cities and online discount control [1][2] Group 1: Anta Brand Performance - In Q2 2025, Anta's main brand revenue growth is low single digits, while H1 shows mid single-digit growth, a decrease from high single digits in Q1 [2] - The company is focusing on optimizing franchise channels in lower-tier cities and has appointed a new e-commerce head to enhance online sales management [2][3] - The inventory-to-sales ratio remains around 5 months, with offline discounts stable year-on-year and online discounts slightly deepening [2][3] Group 2: FILA Brand Performance - FILA's revenue in Q2 2025 shows mid single-digit growth year-on-year, with H1 growth at high single digits [3] - FILA's large goods are expected to grow at high single digits, while Fusion and children's wear are projected to grow at mid single digits [3] - Online sales for FILA are performing better than offline, with an overall inventory-to-sales ratio of about 5 months [3] Group 3: Other Brands Performance - Other brands collectively achieved revenue growth of 50%-55% in Q2 2025, with Kolon exceeding 70% and Descente projected to grow over 40% [3] - Maia Active shows over 30% revenue growth, with double-digit growth in store efficiency and rapid membership growth driven by endorsements [3] Group 4: Outlook for H2 2025 - The company maintains expectations for high single-digit growth for Anta, mid single-digit growth for FILA, and over 30% growth for other brands in 2025 [4] - Continuous optimization of offline franchise stores and expansion of new retail formats for Anta are planned [4] - Anticipated decline in interest income and increased market investment for Anta and FILA may lead to a slight decrease in operating profit margins [4] Group 5: Profit Forecast - Revenue projections for 2025-2027 are 784.4 billion, 848.8 billion, and 911.0 billion, with year-on-year growth rates of +10.7%, +8.2%, and +7.3% respectively [5] - Expected net profit for the parent company is 134.1 billion, 149.7 billion, and 165.4 billion, with a year-on-year decrease of -14.0% (excluding one-time losses from Amer) [5] - Corresponding P/E ratios are 17.7x, 15.9x, and 14.3x, with a maintained "buy" rating [5]

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 113.6, reflecting a potential upside from the current price of HKD 92.45 [6]. Core Insights - Anta's main brand recorded low single-digit growth in Q2 2025, slightly below expectations, while FILA achieved mid-single-digit growth. Other brands saw significant growth of 50-55% [2][3]. - The company has completed the acquisition of Jack Wolfskin, a German outdoor brand, for USD 290 million, which is expected to enhance its presence in the outdoor market in China [3]. - The financial projections for EPS from 2025 to 2027 are estimated at RMB 4.72, RMB 5.26, and RMB 5.88 respectively, indicating a positive growth trajectory despite some fluctuations in profit margins [4][3]. Summary by Sections Brand Performance - Anta's main brand experienced low single-digit growth in Q2 2025, with children's products performing better than bulk items. The overall H1 performance showed mid-single-digit growth [2]. - FILA's Q2 2025 revenue growth was in the mid-single digits, aligning with expectations, while other brands, including Descente and KOLON, reported over 40% and 70% growth respectively [2][3]. Financial Projections - Revenue is projected to grow from RMB 62.36 billion in 2023 to RMB 92.97 billion by 2027, with a compound annual growth rate (CAGR) of approximately 10.8% [4]. - The net profit for 2025 is expected to be RMB 13.25 billion, reflecting a decrease of 15% compared to 2024, followed by a recovery in subsequent years [4]. Valuation Metrics - The report assigns a 2025 PE ratio of 22 times, based on industry averages and brand premium considerations, supporting the target price of HKD 113.6 [3][4]. - The projected gross margin remains stable around 62%, with net profit margins expected to fluctuate between 16.9% and 17.8% over the forecast period [4][11].