Core Insights - Anta Sports reported Q3 2025 retail data showing low single-digit growth for Anta and FILA brands, while other brands experienced a growth of 45%-50% [1] Group 1: Retail Performance - Anta brand retail showed low single-digit growth year-on-year, aligning with trends in the mass sports market, with channel adjustments expected to drive future growth [1] - FILA brand retail performance was relatively weak with low single-digit growth year-on-year, and inventory levels were noted to be high [1] Group 2: Discount and Inventory Management - Anta is expected to face weaker terminal discounts in the short term, but the inventory-to-sales ratio remains healthy [1] - For FILA, offline discounts are expected to remain stable, with an anticipated improvement in the inventory-to-sales ratio [1] Group 3: Future Outlook - The company is expected to enhance its brand matrix through acquisitions, with previous acquisitions like Jack Wolfskin contributing to long-term growth potential [1] - Projected net profits for the company from 2025 to 2027 are estimated at 13.1 billion, 14.6 billion, and 16.1 billion yuan, with corresponding P/E ratios of 17, 15, and 14 times [1] - The company's share buyback plan continues, providing short-term support for the stock price, maintaining a "buy" rating [1]

Core Insights - Anta Sports (02020) is expected to gradually reflect the results of its online and offline reforms, with a strong performance from its multi-brand matrix including FILA and outdoor brands [1] - The company maintains a "Buy" rating from Zheshang Securities, highlighting the vitality of its multi-brand strategy [1] Group 1: Anta Brand Performance - Anta's Q3 revenue growth is in the low single digits, showing slight acceleration compared to Q2, with online growth in the high single digits [1] - Offline discounts are at 71%, year-on-year stable, while online discounts are at 50%, slightly deepening [1] - Inventory turnover ratio has slightly exceeded 5X due to increased stocking for Double Eleven [1] Group 2: FILA Brand Performance - FILA's Q3 revenue growth is in the low single digits, with a slight deceleration compared to previous quarters, attributed to the delayed sales of autumn apparel due to higher temperatures in September [1] - Offline discounts are at 74%, while online discounts are at 58%, remaining stable on a month-on-month basis but slightly deepening year-on-year [1] - The inventory turnover ratio has increased to 6X due to Double Eleven preparations, with expectations to return to 5-6X by year-end [1] Group 3: Outdoor and Other Brands - The outdoor brand matrix continues to perform strongly, with Descente brand revenue growing by 30% in Q3 and KOLON brand revenue increasing by 70%, both maintaining a healthy discount of 90% [2] - Maia Active, a women's sports brand, saw a revenue increase of 45% in Q3, enhancing its brand influence and channel layout [2] - The global business of Wolf Claw has been consolidated since June, with an active brand revitalization strategy being developed [2]

Core Insights - The report from Zheshang Securities expresses optimism about Anta Sports' (02020) ongoing online and offline reforms, as well as the strong performance of its FILA and outdoor brand matrix, maintaining a "buy" rating for the stock [1] Group 1: Anta Sports Performance - Anta's Q3 revenue growth is in the low single digits, showing slight acceleration compared to Q2, with online growth in the high single digits [1] - Offline discounts are at 71%, remaining stable year-on-year, while online discounts have deepened to 50% [1] - The inventory-to-sales ratio has slightly exceeded 5X due to increased stocking for the Double Eleven shopping festival [1] - Adjustments in the e-commerce organizational structure are ongoing, focusing on inventory management and enhancing content on social media platforms like Douyin [1] - New store formats such as Champion, SV, and Palace are performing well, and the Super Anta store format is being actively refined [1] Group 2: FILA and Other Brands - FILA's Q3 revenue growth is in the low single digits, with a slight deceleration compared to previous months, attributed to delayed sales of autumn apparel due to higher temperatures in September [1] - Offline discounts for FILA are at 74%, while online discounts are stable at 58%, with the inventory-to-sales ratio increasing to 6X due to Double Eleven preparations, expected to return to 5-6X by year-end [1] - FILA held a strategic launch event in Q3, announcing Yun Chaoke as the brand ambassador and collaborating with Beijing Sport University and Beijing Institute of Fashion Technology to create a closed-loop ecosystem [1] - FILA is also the exclusive sports footwear and apparel sponsor for the China Open Tennis Tournament [1] Group 3: Outdoor Brands Performance - The outdoor brand matrix continues to thrive, with Descente achieving a 30% revenue growth in Q3, and KOLON seeing a 70% increase, both maintaining a healthy discount rate of 90% [2] - Maia Active, a women's sports brand, reported a 45% revenue growth in Q3, enhancing its brand influence and channel layout [2] - The global business of Wolf Claw has been consolidated since June, with an active brand revitalization strategy being developed [2]

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]

Core Viewpoint - Anta Group is intensifying anti-corruption measures and enhancing internal controls while pursuing aggressive acquisition strategies to maintain growth and profitability in a challenging market environment [2][4][11]. Anti-Corruption Measures - By 2025, Anta Group is focusing on high-risk areas for anti-corruption governance, employing internal audits and inspections to combat corruption [2]. - As of August 2025, 74 employees were dismissed for serious misconduct, and 46 individuals were referred to judicial authorities, including one executive and 14 senior managers [4]. - Anta has established a "career tracing mechanism" to hold employees accountable for misconduct regardless of their employment status [4]. - The company has formed an "Integrity and Ethics Committee" and revised six core policies to strengthen compliance and risk management [4]. Financial Performance - In the first half of the year, Anta reported revenue of 38.544 billion yuan, a year-on-year increase of 14.3%, while net profit attributable to shareholders fell by 8.9% to 7.031 billion yuan [8]. - The overall gross margin decreased by 0.7 percentage points to 63.4%, attributed to lower margins in e-commerce and footwear segments [8]. - The main brand, Anta, saw a gross margin decline from 56.6% to 54.9%, while FILA's gross margin fell to 68% [8]. Acquisition Strategy - Anta continues its acquisition strategy, having completed the acquisition of Jack Wolfskin and is reportedly pursuing the Reebok brand [7][11]. - The company aims to replicate the success of FILA, which has become a significant revenue contributor since its acquisition [7]. Global Expansion - Anta is committed to a "single focus, multi-brand, globalization" strategy, with plans to establish a strong presence in Southeast Asia and other international markets [11]. - The company aims to open 1,000 stores for the Anta brand in Southeast Asia over the next three years [11].

Core Viewpoint - The Hong Kong stock market has been recovering since 2025, leading to a resurgence for domestic sports brands, with notable stock price increases for companies like Anta, Xtep, 361 Degrees, and Li Ning, although challenges remain in consumer spending and industry competition [1] Financial Performance - Anta continues to dominate the market, with a revenue of 38.54 billion RMB in the first half of the year, approximately 1.4 times that of Li Ning, Xtep, and 361 Degrees combined; its net profit reached 7 billion RMB, more than double that of the other three brands combined [3][4] - Among the four brands, Anta had the highest revenue growth rate at 14.26%, although its net profit saw a nearly 9% decline; when excluding certain gains, its net profit increased by 14.5% year-on-year [4][5] - Xtep was the only company to report a revenue decline of about 5%, but its net profit growth was the highest at 21.47%, attributed to the exclusion of losses from divested brands and strong performance from its main brand [5][6] - Li Ning lagged behind with a revenue growth of only 3.29% and a significant net profit decline of over 10%, impacted by a drop in retail channel performance [6][7] - 361 Degrees showed balanced performance with a revenue growth of 10% and a net profit increase of over 8% [7] Stock Performance - The stock price increases for the four companies varied significantly, with 361 Degrees leading at nearly 50%, followed by Anta with over 20%, while Xtep and Li Ning had increases of 16% and 14%, respectively [8][9] Strategic Directions - Anta is focused on strategic acquisitions to enhance its multi-brand matrix, believing that a differentiated brand portfolio is key to sustained growth [17] - Li Ning aims to maintain a cautious approach while solidifying its business foundation and capturing structural opportunities in the market [18] - 361 Degrees is encouraging the opening of larger stores and upgrading to the latest store formats, focusing on a multi-category product ecosystem [19] - Xtep is strategically concentrating on the running segment to solidify its position as a leading brand in this category, enhancing its brand influence and market share [20]

Core Insights - Anta Sports achieved a revenue of 38.544 billion yuan in H1 2025, representing a year-on-year growth of 14.3% [1] - The net profit attributable to shareholders, excluding the dilution from Amer Sports' listing, was 7.031 billion yuan, also up 14.5% year-on-year, with a net profit margin of 18.2% [1] - The company plans to distribute an interim dividend of 1.37 HKD per share, with a stable payout ratio of 50.2% [1] Brand Performance - Anta's main brand revenue grew by 5.4% to 16.95 billion yuan in H1 2025, with a gross margin decrease of 1.7 percentage points to 54.9% due to increased investment in professional products and a higher proportion of lower-margin e-commerce sales [2] - FILA's revenue increased by 8.6% to 14.18 billion yuan, with a gross margin decline of 2.2 percentage points to 68.0% [2] - Other brands saw a significant revenue increase of 61.1% to 7.41 billion yuan, with a gross margin and operating profit margin rising to 73.9% and 33.2%, respectively, driven by high-end outdoor brands like DESCENTE and Kolon Sport [2] Channel Performance - Online sales grew by 17.6%, with online revenue accounting for 34.8% of total revenue, an increase of 2.0 percentage points year-on-year [2] - As of mid-2025, Anta's main brand operated 7,187 stores, with various new store formats being introduced [3] - FILA's store count remained stable, while DESCENTE and KOLON SPORT continued to expand rapidly [3] Strategic Initiatives - The multi-brand strategy remains central to the company's operations, with the acquisition of JACK WOLFSKIN and the establishment of a joint venture with MUSINSA to enhance market presence in China [3] - The company is expected to see net profits of 13.814 billion yuan, 15.738 billion yuan, and 17.747 billion yuan from 2025 to 2027, with year-on-year growth rates of -11.43%, 13.93%, and 12.77%, respectively [3] Outlook - The company is expected to maintain stable contributions from its main brand and FILA, while outdoor segments are anticipated to drive growth [4] - The scalability of operations and overseas expansion prospects are viewed positively, leading to a "buy" rating [4]

Core Viewpoint - Zhaoyin International has raised the target price for Anta Sports (02020) to HKD 118.55, indicating that the company's performance in the first half of the year met expectations [1] Group 1: Company Performance - Anta Sports' first-half performance aligns with expectations, with FILA's growth guidance maintained in the single digits [1] - The growth guidance for other brands has been revised upward from over 30% to over 40%, which is largely in line with Zhaoyin International's expectations [1] Group 2: Industry Outlook - The industry is anticipated to experience a recovery, positioning Anta Sports favorably within the market [1] - Zhaoyin International maintains a "Buy" rating for Anta Sports, reflecting confidence in the company's future performance [1] Group 3: Financial Projections - The target price for Anta Sports has been increased from HKD 111.54 to HKD 118.55 [1] - Net profit forecasts for 2025 to 2027 have been raised by 2% each [1]

Group 1 - The core viewpoint of the report is that Anta Sports' (02020) performance in the first half of the year meets expectations, indicating a positive outlook for the company [1] - The report maintains the growth guidance for FILA in terms of unit numbers, while raising the growth guidance for other brands from over 30% to over 40%, which aligns with the bank's expectations [1] - The industry is anticipated to enter a recovery phase, positioning Anta favorably within the market [1] Group 2 - The bank maintains a "Buy" rating for Anta Sports, increasing the target price from HKD 111.54 to HKD 118.55 [1] - The net profit forecasts for 2025 to 2027 have been raised by 2% each [1]

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]