Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 116, reflecting an adjustment based on slightly better-than-expected performance in the first half of 2025 [1][4]. Core Insights - Anta Sports reported a revenue increase of 14.3% year-on-year to RMB 38.544 billion in H1 2025, with a net profit attributable to shareholders (excluding the impact of Amer's listing gains) rising by 14.5% to RMB 7.03 billion [1][2]. - The Amer brand has turned profitable, contributing approximately RMB 430 million in profit, a significant improvement from a loss of RMB 20 million in H1 2024 [2]. - The main brand, Anta, achieved revenue of RMB 16.95 billion in H1 2025, up 5.4% year-on-year, while FILA's revenue grew by 8.6% to RMB 14.18 billion, driven by strong performance in professional sports categories [3]. Financial Summary - The report projects the following earnings per share (EPS) for 2025-2027: RMB 4.84, RMB 5.36, and RMB 5.88, respectively, with an upward revision from previous estimates [1][4]. - Revenue forecasts for 2025, 2026, and 2027 are RMB 78.967 billion, RMB 86.321 billion, and RMB 93.886 billion, respectively, reflecting growth rates of 11.5%, 9.3%, and 8.8% [5][12]. - The gross profit margin is expected to stabilize around 62.2% for 2025, with a net profit margin of 17.2% [5][13]. Brand Performance - The other brands under Anta, including Descente and Kolon, saw a remarkable revenue growth of 61.1% to RMB 7.41 billion in H1 2025, with a gross margin of 73.9% [3]. - Anta's strategy includes targeting different consumer segments through various store formats and product lines, enhancing its market presence [2][3].

Investment Rating - The report maintains a "Buy" rating for Anta Sports with a target price of HKD 128, based on a 25x PE for 2025 [2][5]. Core Insights - Anta Sports reported a revenue increase of 13.6% year-on-year to RMB 70.826 billion for 2024, with a net profit attributable to shareholders (excluding one-time gains from Amer's listing) rising by 16.5% to RMB 11.927 billion [3][5]. - The company successfully turned around Amer Sports, contributing approximately RMB 200 million to the group's profit from joint ventures [3]. - The main brand, Anta, achieved a revenue of RMB 33.5 billion in 2024, reflecting a growth of 13.5% [4]. Financial Performance Summary - Revenue for 2024 was RMB 70.826 billion, with a growth rate of 13.6% [6]. - Net profit attributable to shareholders for 2024 was RMB 15.596 billion, showing a significant increase of 50.7% [6]. - Gross margin decreased by 0.4 percentage points to 62.2%, while operating profit margin fell by 1.2 percentage points to 23.4% [3][6]. - EPS for 2025 is projected at RMB 4.78, with a forecasted growth rate of 10.6% for revenue in 2025 [6]. Brand Performance - FILA achieved a revenue of RMB 26.6 billion in 2024, growing by 6.1% [4]. - Other brands collectively surpassed RMB 10.7 billion in revenue, marking a 53.7% increase year-on-year [4]. - The company continues to focus on multi-brand strategies, with significant growth in the number of stores for Descente and Kolon [4].