Investment Rating - The investment rating for Anta Sports is "Outperform the Market" (maintained) [1] Core Views - Anta Sports Group achieved double-digit revenue growth in the first half of the year, with healthy and controllable discount inventory levels [1][4] - In Q2 2025, Anta's main brand recorded low single-digit growth, while FILA achieved mid-single-digit growth, and other brands saw a remarkable 50-55% growth [2][4] - The management maintains its annual guidance for all brands despite the overall market pressure [4][5] Summary by Sections Retail Performance - In Q2 2025, Anta's overall revenue growth was double digits, with FILA and other brands performing well. The main brand's low single-digit growth was impacted by channel adjustments [3][5] - The online discount levels were influenced by the extended 618 promotional period, and inventory levels remained healthy [3][5] Brand Performance - Anta's main brand recorded low single-digit revenue growth in Q2 2025, with a sell-through ratio of five months at the end of the quarter. The running shoe series performed exceptionally well [6][9] - FILA's revenue growth was in the mid-single digits, with strong performance in golf and tennis categories [9][14] - Other brands, particularly KOLON, saw revenue growth exceeding 70%, while Descente grew over 40% [10] Financial Forecasts - The forecast for Anta's net profit for 2025-2027 is estimated at 134.8 billion, 154.6 billion, and 170.0 billion respectively, with comparable profit growth rates of 13.0%, 14.7%, and 10.0% [4][15] - The reasonable valuation range is maintained at 113-118 HKD, corresponding to a 2025 PE of 22-23X [4][15]

Investment Rating - The report maintains an "OUTPERFORM" rating for Anta Sports, with a target price of HK$102.80, representing a potential upside of 9.4% from the current price of HK$94.05 [2][8]. Core Insights - Anta Sports continues to gain market share through product upgrades and channel innovations, with brand sell-through exceeding RMB 40 billion in FY24, achieving high single-digit growth [3][13]. - The acquisition of Jack Wolfskin is expected to enhance Anta's outdoor brand matrix, further solidifying its position in the high-end outdoor market [5][15]. - The FILA brand is experiencing growth due to a new CEO and an expanded product range, with sales expected to maintain mid-single-digit growth in 2025 and accelerate in subsequent years [4][16]. Summary by Sections Anta Brand Performance - Anta's brand revenue exceeded RMB 40 billion in 2024, driven by successful product upgrades and channel innovations, with a focus on high-end and mass-market positioning [3][13]. - The introduction of new product lines, such as the Anta Junior Series and various running shoe models, has contributed to significant sales growth [3][13]. FILA Brand Developments - FILA's revenue surpassed RMB 30 billion in 2024, with a strong online presence accounting for approximately 40% of sales [4][14]. - The brand's management transition is expected to support sustainable growth, with a focus on product positioning and brand development [4][14]. Other Brands and Acquisitions - Other brands under Anta, including DESCENTE and Kolon, reported significant revenue growth, with DESCENTE establishing a strong position in the high-end golf market [5][15]. - The planned acquisition of Jack Wolfskin for USD 290 million is anticipated to enhance Anta's outdoor product offerings and market presence [7][15]. Financial Projections - Revenue forecasts for Anta Sports are projected at RMB 78.97 billion for 2025, with a low double-digit growth rate expected through 2027 [8][16]. - Net profit estimates for the same period are RMB 13.39 billion in 2025, with a year-on-year growth of -14.1% due to one-off impacts in 2024 [8][16].