Core Viewpoint - Anta Sports reported a revenue of 80.22 billion yuan for 2025, representing a year-on-year growth of 13.3%, while the net profit attributable to shareholders, including the impact of AMER, was 13.59 billion yuan, a decline of 12.9% year-on-year. Excluding AMER's impact, the net profit was 12.39 billion yuan, showing a growth of 5.6% year-on-year [4]. Financial Performance - The company achieved an EPS of 4.89 yuan and proposed a final cash dividend of 1.08 HKD per share, with a total payout ratio of 50.1% for the year [4]. - The gross margin for 2025 slightly decreased by 0.2 percentage points to 62%, while the operating profit margin increased by 0.4 percentage points to 23.8% [7][8]. - The net profit margin, including and excluding AMER's impact, was 16.9% and 15.4%, respectively, reflecting a decline of 5.1 and 1.2 percentage points year-on-year [4]. Revenue Breakdown - The main brand Anta, FILA, and other brands saw revenue growth of low single digits, mid single digits, and 45-50%, respectively, in 2025 [5]. - For the year, the revenue from footwear, apparel, and accessories accounted for 39.3%, 57.1%, and 3.6% of total revenue, with year-on-year growth rates of 7.9%, 16.3%, and 29.8%, respectively [6]. - Online sales increased by 15.5%, contributing to 35.8% of total revenue, which is a 0.7 percentage point increase year-on-year [6]. Brand Performance - The revenue contribution from Anta, FILA, and other brands was 43.3%, 35.5%, and 21.2%, with respective year-on-year growth rates of 3.7%, 6.9%, and 59.2% [6]. - The DTC (Direct-to-Consumer) channels for Anta brand showed positive growth, with revenue from DTC direct sales, DTC franchise, e-commerce, and traditional wholesale contributing 35.4%, 18.4%, 37%, and 9.2% of total revenue, respectively [6]. Cost and Expenses - The expense ratio increased by 0.3 percentage points to 40.5%, with sales, management, and financial expense ratios at 35.5%, 6.5%, and -1.4%, respectively [8]. - Advertising and promotional expenses, employee costs, and R&D expenses accounted for 8%, 15.3%, and 2.7% of revenue, with year-on-year changes of -1%, +0.5%, and -0.1%, respectively [8]. Inventory and Cash Flow - Inventory at the end of 2025 increased by 12.9% to 12.15 billion yuan, with an inventory turnover period of 137 days, an increase of 14 days year-on-year [9]. - Operating net cash flow for 2025 was 21 billion yuan, reflecting a year-on-year increase of 25.4% [9].

Investment Rating - The report assigns a "BUY" rating for the company, indicating a potential upside in the stock price [7][8]. Core Insights - The company achieved a revenue of RMB 80.22 billion in 2025, representing a year-on-year increase of 13.3%. However, the net profit attributable to shareholders decreased by 12.9% to RMB 13.59 billion. Excluding the impact of Amer Sports' listing, the net profit increased by 13.9% year-on-year [8][9]. - The company plans to expand its global operations, aiming to establish 1,000 retail outlets in Southeast Asia by 2028 and entering markets in South Asia, Australia, New Zealand, and India [9]. - The company has made strategic acquisitions, including the purchase of shares in Wolf Claw and PUMA, and invested in the South Korean fashion e-commerce platform MUSINSA, which is expected to enhance its brand portfolio and market coverage [9]. Summary by Sections Company Overview - The company operates in the textile and apparel industry, with a current stock price of HKD 75.75 and a market capitalization of HKD 215.85 billion [2]. Recent Ratings - The company has consistently received "BUY" ratings in recent reports, with the last rating issued on January 27, 2026, at a closing price of HKD 76.35 [3]. Product Mix - The product portfolio consists of footwear (39.3%), apparel (57.1%), and accessories (3.6%) [4]. Financial Performance - The company reported a gross margin of 62% for the reporting period, a decrease of 0.2 percentage points year-on-year, attributed to the rising proportion of lower-margin e-commerce business and increased costs [9]. - The projected net profits for 2026, 2027, and 2028 are RMB 14.6 billion, RMB 16.27 billion, and RMB 18.27 billion, respectively, with corresponding year-on-year growth rates of 7.4%, 11.4%, and 12.3% [9][11]. Dividend Policy - The company announced a cash dividend of HKD 1.08 per share for the reporting period [8].

Investment Rating - The investment rating for the company is "BUY" with a target price of HKD 89, indicating a potential upside from the current price of HKD 75.75 [1][7]. Core Insights - The company achieved a revenue of RMB 80.22 billion in 2025, representing a year-on-year increase of 13.3%. However, the net profit attributable to shareholders decreased by 12.9% to RMB 13.59 billion. Excluding the impact of Amer Sports' listing, the net profit increased by 13.9% [8][9]. - The company plans to expand its global operations, aiming to establish 1,000 retail outlets in Southeast Asia by 2028 and entering markets in South Asia, Australia, New Zealand, and India [9]. - The company has made strategic acquisitions, including the purchase of shares in Wolf Claw and PUMA, and invested in the South Korean fashion e-commerce platform MUSINSA, which is expected to enhance its brand portfolio and market coverage [9]. Summary by Sections Company Overview - The company operates in the textile and apparel industry, with a market capitalization of HKD 215.846 billion and a total share count of 2,796.65 million [2]. Recent Ratings - The company has consistently received "BUY" ratings in recent reports, with the last rating issued on January 27, 2026, at a closing price of HKD 76.35 [3]. Product Mix - The product mix consists of footwear (39.3%), apparel (57.1%), and accessories (3.6%) [4]. Financial Performance - The company reported a gross profit margin of 62% for the reporting period, a decrease of 0.2 percentage points year-on-year, attributed to the increased proportion of lower-margin e-commerce business and rising costs [9]. - The company expects net profits for 2026, 2027, and 2028 to be RMB 14.6 billion, RMB 16.27 billion, and RMB 18.27 billion, respectively, with corresponding year-on-year growth rates of 7.4%, 11.4%, and 12.3% [9][11]. Dividend Policy - The company announced a cash dividend of HKD 1.08 per share for the reporting period [8].

Investment Rating - The industry investment rating is "Positive" [10] Core Insights - In FY2025Q4, the adidas brand achieved revenue of €6.08 billion, representing a year-on-year increase of 11% at constant exchange rates. The gross margin improved by 1.0 percentage points to 50.8%, primarily due to reduced product and freight costs, business structure optimization, and full-price sales. Operating profit surged by 188% to €160 million, with an operating margin increase of 1.7 percentage points to 2.7%. The net profit margin turned positive at 1.3% [2][6] Revenue Breakdown - By region, at constant exchange rates, adidas brand revenues for FY2025Q4 grew year-on-year as follows: Europe +6% (€1.83 billion), North America +5% (€1.27 billion), Latin America +18% (€840 million), Emerging Markets +15% (€940 million), Japan/Korea +13% (€320 million), and Greater China +15% (€850 million). For FY2025, revenues increased by 10% in Europe (€8.14 billion), 10% in North America (€5.09 billion), 22% in Latin America (€2.93 billion), 17% in Emerging Markets (€3.51 billion), 14% in Japan/Korea (€1.41 billion), and 13% in Greater China (€3.62 billion) [7][8] - By channel, at constant exchange rates, adidas brand revenues for FY2025Q4 were up 2% in wholesale (€3.04 billion) and 19% in DTC (€3.01 billion). For FY2025, revenues increased by 12% in wholesale (€14.83 billion) and 14% in DTC (€9.93 billion). The DTC channel showed strong growth in FY2025Q4, with e-commerce revenue up 21% and self-operated retail store revenue up 17% [7][8] - By product category, at constant exchange rates, adidas brand revenues for FY2025Q4 were as follows: footwear +5% (€3.25 billion), apparel +20% (€2.38 billion), and accessories +7% (€450 million). For FY2025, revenues increased by 12% in footwear (€14.23 billion), 15% in apparel (€8.76 billion), and 6% in accessories (€1.82 billion). Notably, running shoes saw over 35% growth in FY2025Q4, supported by World Cup-related apparel [8] Inventory and Performance Guidance - As of FY2025Q4, the company's inventory increased by 16.9% year-on-year to €5.83 billion, primarily due to revenue growth plans and early procurement of World Cup-related products. The overall inventory structure remains healthy, supporting sustained revenue growth [14] - For FY2026, the company expects revenue growth of approximately €2 billion at constant exchange rates, with all markets projected to gain market share. North America, Greater China, Emerging Markets, Latin America, and Japan/Korea are expected to see low double-digit growth, while Europe is anticipated to achieve mid-single-digit growth. Operating profit is projected to be around €2.3 billion, which is below market expectations [14]

Market Trends - The domestic market indices showed a slight decline, with the Shanghai Composite Index closing at 4,129.10, down 0.10%, while the Shenzhen Component Index fell by 0.63% [4][5]. Industry Commentary Chemical Raw Materials - The new materials sector experienced a decline of 5.28%, underperforming the ChiNext Index by 2.83%. Key segments such as semiconductor materials and electronic chemicals saw significant drops of 9.92% and 7.39%, respectively [6]. - The disruption of commercial shipping in the Strait of Hormuz due to geopolitical tensions has led to increased prices in the vitamin and amino acid sectors. For instance, the price of vitamin E rose by 11.76% to 66,500 CNY/ton, and methionine surged by 24.54% to 23,850 CNY/ton [6][7]. Communication Industry - Nvidia's strategic investment of $4 billion in optical communication firms Lumentum and Coherent highlights the importance of optical chips and modules in AI infrastructure. This investment aims to enhance domestic manufacturing capabilities in the U.S. [8]. - The "14th Five-Year Plan" emphasizes the significance of AI computing and satellite internet as key investment areas, with plans for large-scale projects in integrated circuits and satellite internet [8][9]. Textile and Apparel - The textile and apparel sector saw a decline of 2.8%, with specific sub-sectors like textile manufacturing and home textiles also experiencing downturns. Notably, On Running reported a 30% revenue increase for FY2025, with a projected 23% growth for FY2026 [11][15]. - Adidas reported record global revenue of 24.8 billion euros for 2025, marking a 13% increase, with significant growth in the Greater China region [14][15]. Company Commentary Zhongchumai (688267.SH) - Zhongchumai reported a historical high in performance, with a revenue of 856 million CNY for 2025, reflecting a 28.37% year-on-year increase, and a net profit of 212 million CNY, up 45.55% [18][20]. - The company is benefiting from increased demand for tail gas catalysts and has successfully expanded its product line through continuous R&D innovation [20][21].

Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Insights - The textile and apparel industry is experiencing a weak recovery, with a focus on consumer performance at the clothing retail end, innovation in home textile products, and the IP economy [8] - On Running reported a 30% year-on-year revenue increase for FY2025, with expectations of a 23% growth in FY2026 [2][17] - Adidas achieved record global revenue of €24.8 billion in 2025, with a 13% year-on-year growth, and anticipates high single-digit growth in 2026 [5][60] Summary by Sections Company Performance - On Running's FY2025 revenue reached CHF 3.014 billion, a 30% increase, while net profit decreased by 15.9% to CHF 204 million [2][17] - Adidas reported a global revenue of €24.8 billion for 2025, with a 54% increase in operating profit to €2.06 billion and a gross margin improvement to 51.6% [5][60] - Amer Sports announced a public offering of $750 million in common stock to redeem existing debt [4][67] Market Trends - The textile and apparel sector saw a decline of 2.8% in the SW index, underperforming the broader market [19][20] - The SW textile manufacturing PE-TTM is at 25.03, while the apparel and home textile sectors are at 30.15 and 28.01 respectively, indicating high valuation levels [25] Regional Performance - On Running's revenue by region showed significant growth, with the Asia-Pacific region increasing by 96.4% [3][17] - Adidas's Greater China revenue for 2025 was €3.62 billion, reflecting a 13% year-on-year growth [61] Product Categories - On Running's revenue from footwear, apparel, and accessories grew by 27.5%, 68.2%, and 124.1% respectively [18] - Adidas's footwear and apparel segments also reported double-digit growth, with footwear revenue increasing over 12% [63] Future Outlook - On Running expects to achieve at least CHF 3.44 billion in revenue for FY2026, with a gross margin of over 63% [18] - Adidas anticipates continued growth in the coming years, with a target of high single-digit growth for 2026 and beyond [63]

Investment Rating - The report provides a "Buy" rating for the textile and apparel industry, indicating an expectation of stock performance exceeding the market by more than 10% over the next 12 months [43]. Core Insights - Adidas reported a revenue of €24.811 billion for FY2025, reflecting a year-on-year growth of 4.8%. The Q4 revenue was €6.076 billion, with a 1.8% increase compared to the previous year [3]. - The net profit attributable to shareholders for FY2025 was €1.34 billion, a significant increase of 75.4% year-on-year, while Q4 net profit reached €0.081 billion, up 307.7% year-on-year [3]. - The gross margin for FY2025 was 51.6%, an increase of 0.8 percentage points year-on-year, and the net profit margin was 5.40%, up 2.2 percentage points year-on-year [3]. Summary by Sections Revenue Performance - FY2025 Q4 revenue was €6.076 billion, a 1.8% increase year-on-year - FY2025 total revenue was €24.811 billion, a 4.8% increase year-on-year - Revenue by region for FY2025: - Europe: €8.136 billion, up 8.0% year-on-year - Greater China: €3.623 billion, up 9.0% year-on-year - North America: €5.087 billion, up 4.0% year-on-year - Emerging Markets: €3.510 billion, up 15.0% year-on-year - Latin America: €2.926 billion, up 21.0% year-on-year - Japan and South Korea: €1.406 billion, up 11.0% year-on-year [3]. Profitability Metrics - Q4 gross margin was 50.8%, up 1.0 percentage points year-on-year - FY2025 gross margin was 51.6%, up 0.8 percentage points year-on-year - Q4 net profit margin was 1.33%, up 303.9 percentage points year-on-year - FY2025 net profit margin was 5.40%, up 2.2 percentage points year-on-year [3]. Expense Management - Q4 selling, general, and administrative expense ratio was 48.82%, down 1.3 percentage points year-on-year - FY2025 selling, general, and administrative expense ratio was 43.82%, down 2.4 percentage points year-on-year [3]. Inventory and Cash Flow - As of FY2025 year-end, inventory was €5.832 billion, an increase of 16.9% year-on-year - Inventory turnover days were 164.49 days, an increase of 15.1 days year-on-year [3]. Future Outlook - The company expects a high single-digit percentage growth in sales revenue for 2026, with operating profit projected to reach around €2.3 billion [3].

Investment Rating - The industry rating is "Recommended" [5] Core Insights - The report highlights significant growth in the textile and apparel industry, with major companies like On Running and Adidas reporting record sales and profits for 2025. On Running's net sales reached 3.014 billion Swiss Francs, a 30% increase year-on-year, while Adidas achieved a global revenue of 24.8 billion Euros, a 13% increase [2][3][4][16]. Summary by Sections Company Performance - On Running's net sales for 2025 reached 3.014 billion Swiss Francs, marking a 30% year-on-year growth, with a net profit of 203 million Swiss Francs, despite a 15.9% decline in profit [2][15]. - Adidas reported a record global revenue of 24.8 billion Euros, a 13% increase, with operating profit rising 54% to 2.06 billion Euros and net profit increasing over 70% to 1.34 billion Euros [3][16]. Regional Performance - On Running's sales in the Asia-Pacific region surged by 96.4% to 511 million Swiss Francs, while Adidas's Greater China revenue grew by 13% to 3.62 billion Euros, marking eleven consecutive quarters of growth [2][3][15][16]. Product Category Performance - On Running's apparel sales increased by 68.2% to 170 million Swiss Francs, while Adidas's footwear revenue rose by 12% to 1.423 billion Euros, with running business revenue exceeding 30% growth [2][3][16]. Financial Health - On Running maintained a cash reserve exceeding 1 billion Swiss Francs and an operating cash flow of 359.5 million Swiss Francs. Adidas improved its operating expense ratio from 34.2% to 31.4% and plans to return 1.5 billion Euros to shareholders in 2026 [2][3][16]. Future Guidance - On Running expects a minimum of 23% growth in net sales for 2026, with a gross margin not lower than 63% and an adjusted EBITDA margin of 18.5%-19% [2][15]. - Adidas anticipates close to double-digit growth in revenue for 2026, with a focus on key markets and product categories, aiming for a gross margin target of 50%-52% by 2028 [3][16].

Investment Rating - The industry investment rating is "Positive" and maintained [9] Core Insights - FY2025Q4 revenue reached 740 million CHF, aligning with expectations (Bloomberg consensus of 730 million CHF), with a year-over-year growth of 30.6% at constant exchange rates. Gross margin improved by 1.8 percentage points to 63.9%, driven by operational efficiency, full-price sales, and exchange rate effects. However, net profit decreased by 22.9% to 70 million CHF, with a net profit margin down by 5.5 percentage points to 9.3% [2][6] - For the full FY2025, revenue was 3.01 billion CHF, exceeding the company's guidance of at least 34% growth at constant exchange rates, achieving a year-over-year increase of 35.6%. Gross margin rose by 2.2 percentage points to 62.8%, while net profit fell by 15.9% to 200 million CHF, with a net profit margin of 6.8% [6][7] Revenue Breakdown - Revenue growth remained strong with a more balanced revenue structure: 1. By region: At constant exchange rates, revenue growth for FY2025Q4 was 21.3% in the Americas, 27.5% in EMEA, and 85.1% in Asia-Pacific, totaling 430 million CHF, 180 million CHF, and 130 million CHF respectively. For FY2025, revenue growth was 23.4%, 34.7%, and 106.7%, reaching 1.74 billion CHF, 760 million CHF, and 510 million CHF respectively [7] 2. By channel: At constant exchange rates, DTC and wholesale channels saw revenue growth of 30.0% and 31.2% in FY2025Q4, totaling 360 million CHF and 380 million CHF respectively. For FY2025, revenue growth was 39.9% and 32.6%, reaching 1.26 billion CHF and 1.75 billion CHF respectively [7] 3. By product: At constant exchange rates, revenue growth for footwear, apparel, and accessories in FY2025Q4 was 28.8%, 46.0%, and 131.3%, totaling 690 million CHF, 50 million CHF, and 10 million CHF respectively. For FY2025, revenue growth was 32.9%, 75.5%, and 135.1%, reaching 2.8 billion CHF, 170 million CHF, and 40 million CHF respectively [8] Inventory and Guidance - As of FY2025Q4, the company's inventory remained stable at 420 million CHF, indicating a healthy inventory level that supports full-price sales [12] - For FY2026, the company expects revenue growth of at least 23% at constant exchange rates, projecting sales of 3.44 billion CHF, which is below market expectations (Bloomberg consensus of 3.675 billion CHF). The gross margin is expected to reach at least 63%, with adjusted EBITDA margin projected between 18.5% and 19% [12]

Investment Rating - The report assigns a rating of "Outperform" for On Holdings AG, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [19]. Core Insights - For FY2025, On Holdings AG achieved record high revenue and gross margin, with net sales surpassing CHF 3 billion for the first time, reflecting a 30% year-on-year increase in reported currency and a 35.6% increase in fixed currency [2][8]. - The company raised its full-year guidance for 2026, projecting at least a 23% increase in net sales at fixed currency, with a compound annual growth rate of at least 30.5% from 2023 to 2026 [5][11]. - The DTC (Direct-to-Consumer) channel's share rose to 41.8%, up 110 basis points year-on-year, indicating strong growth across various regions, particularly in APAC [2][8]. Summary by Sections Financial Performance - In FY2025, net profit was CHF 203 million, down 15.9% year-on-year, while gross margin reached 62.8% and adjusted EBITDA margin hit a record high of 18.8% [2][8]. - For Q4 FY2025, net sales reached CHF 743.8 million, a 22.6% increase year-on-year, with a gross margin of 63.9%, up 180 basis points from the previous year [3][9]. Regional Performance - The Americas, EMEA (Europe, Middle East, and Africa), and APAC regions all showed robust expansion, with APAC being the standout performer, achieving a 70.8% increase in net sales in reported currency [4][10]. - By region, net sales in the Americas totaled CHF 434.3 million, up 12.8% in reported currency, while EMEA reached CHF 183 million, up 24.2% [10]. Product Categories - Multi-category expansion significantly contributed to performance growth, with apparel sales increasing by 75.5% and accessories by 135.1% on a fixed currency basis [2][8]. - Footwear net sales reached CHF 687.3 million, reflecting a 20.8% increase in reported currency, driven by high-performance running shoes and popular product lines [10].