Group 1 - Anta Group reported a low single-digit year-on-year growth in retail sales for the Anta brand in Q2 2025, and a mid single-digit growth for H1 2025 [1] - FILA brand showed a strong performance with a mid single-digit year-on-year growth in Q2 2025 and a high single-digit growth in H1 2025 [1] - Other brands (excluding those added after April 1, 2025) achieved a year-on-year growth of 50-55% in Q2 2025 and 60-65% in H1 2025, indicating excellent performance across the diversified brand portfolio [1] Group 2 - The company is optimistic about its performance in the sports and outdoor footwear and apparel sector in 2025, expecting continued market share expansion due to an expanding brand matrix [2] - The profit forecast for 2025 and 2026 has been adjusted downwards to a net profit of 13.412 billion yuan (previously 13.801 billion yuan) and 15.045 billion yuan (previously 15.389 billion yuan) respectively, with a new forecast of 17.281 billion yuan for 2027 [2] - The current stock price corresponds to a PE ratio of 17.6 times for 2025, maintaining a "strong buy" rating [2]

Core Viewpoint - The company reported its Q2 2025 operational data, showing performance in line with expectations, with a double-digit revenue growth overall, while the main brand Anta experienced low single-digit growth [1][2]. Group 1: Anta Brand Performance - In Q2 2025, Anta's brand revenue growth was low single-digit, while the first half of the year showed mid single-digit growth, which was below internal expectations due to several factors [2]. - The company accelerated store upgrades in lower-tier cities, impacting short-term sales but laying a foundation for future growth [2]. - The competitive landscape during the online 618 shopping festival led to a cautious approach on discounts to maintain brand health [2]. - A new e-commerce head was appointed to enhance product differentiation across platforms, with expectations for improved sales performance in the second half of the year [2]. Group 2: New Retail Formats and Other Brands - Anta's new retail formats, such as champion stores and SV collection stores, have shown significant effectiveness, with champion stores achieving 80% higher sales efficiency than regular stores [3]. - FILA continued its steady growth with mid single-digit revenue growth in Q2, driven by a recovery in main products and strong e-commerce performance [3]. - New brands like Descente, KOLON, and Maia Active showed exceptional growth, with Descente exceeding 40% and KOLON over 70% in Q2 [3]. Group 3: Inventory and Financial Outlook - Inventory levels remained healthy, with a stock-to-sales ratio of around five months for Anta and FILA [4]. - The company maintained effective cost control, which is beneficial for stabilizing overall operating profit margins [4]. - The multi-brand matrix is seen as a valuable asset, with expectations for continued growth potential, maintaining a "buy" rating and profit forecasts for 2025-2027 [4].

Investment Rating - The investment rating for Anta Sports is "Buy" [6] Core Views - Anta Sports reported a short-term adjustment in its main brand, with FILA meeting expectations and other brands performing strongly [1] - The main brand's revenue in Q2 showed a low single-digit year-on-year growth, while H1 revenue grew in the mid-single digits [1] - FILA's Q2 revenue grew in the mid-single digits year-on-year, with H1 revenue increasing in the high single digits, aligning with expectations [2] - Other brands, including Descente and Maia Active, exhibited significant growth, with Descente's revenue increasing over 40% and Maia Active's over 30% [3] - The acquisition of the German outdoor brand Wolfskin for approximately 2.9 billion USD (about 21.2 billion RMB) is expected to enhance Anta's outdoor segment and market presence in Europe [4] - Revenue forecasts for 2025, 2026, and 2027 are projected to grow by 12%, 9%, and 8% respectively, with net profit expected to be 134 billion RMB, 148 billion RMB, and 161 billion RMB [5] Summary by Sections Main Brand Performance - Q2 revenue for the main brand grew in low single digits year-on-year, with H1 showing mid-single-digit growth; children's products performed slightly better than bulk products [1] - The company is implementing a store efficiency improvement plan for offline franchises and has appointed a new e-commerce head to enhance product strategy [1] FILA Brand Performance - FILA's Q2 revenue increased in the mid-single digits year-on-year, with strong performance in bulk and kids' categories [2] Other Brands Performance - Descente's revenue grew over 40%, KOLON over 70%, and Maia Active over 30%, with continued improvements in store efficiency and product line expansion [3] Acquisition Impact - The acquisition of Wolfskin is expected to strengthen Anta's position in the mid-range outdoor market and enhance its international presence [4] Financial Forecasts - Revenue projections for 2025, 2026, and 2027 are 796 billion RMB, 868 billion RMB, and 937 billion RMB respectively, with corresponding net profits of 134 billion RMB, 148 billion RMB, and 161 billion RMB [5]

Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Key Brands**: Anta, FILA, Descente, and others - **Recent Developments**: Integration of the Jack Wolfskin brand into Anta's financials Key Points Industry Performance - Anta's main brand performance during the 618 shopping festival was slightly below expectations due to controlled inventory strategies and increased competition from international brands [2][4] - FILA and Descente performed exceptionally well, with FILA ranking highly on both traditional and interest e-commerce platforms [2][5][7] Financial Performance - Overall revenue for the first half of the year met or exceeded expectations, with FILA's operating profit margin slightly down but better than market predictions [2][8][20] - Interest income is expected to decrease this year due to the overall decline in interest rates [9] - The financial impact of the Jack Wolfskin brand, which is currently in a loss position, is being managed through personnel restructuring and strategic planning [10] Strategic Initiatives - Anta plans to enhance its e-commerce channels and invest in new store formats (Arena, Super Anta) to improve performance, despite high initial costs [2][6] - The company aims to increase the proportion of high-end city stores and diversify its product lines, including launching black label products and Super Anta champion stores, with a goal to surpass Nike in three years [2][14] Marketing and Consumer Engagement - Anta is adjusting its marketing strategy to focus on core retail business and strengthen connections with female consumers [3][19] - The company is optimizing its supply chain and differentiating its outdoor brands to address market competition effectively [3][23] Future Outlook - Anta expects significant improvement in the second half of the year, with plans to recruit a new e-commerce head to streamline product matching across platforms [6] - The company is cautious about its future buyback plans due to recent acquisitions and aims to reassess in February 2026 [17] Brand Differentiation - Anta's outdoor brands are positioned with clear differentiation in pricing and target markets, ensuring they complement rather than compete with each other [23][24] - The company is focusing on enhancing its supply chain capabilities to support rapid response to market demands [26] Sales and Marketing Investments - Sales expenses this year are concentrated on trendy brands, children's series, and FILA Classic, with expectations of continued double-digit growth [22] Inventory Management - Current inventory levels are reported to be stable, with specific data to be released soon [12] Competitive Landscape - Anta is closely monitoring the competitive landscape, particularly the impact of international brands' promotions on its market performance [5][16] This summary encapsulates the key insights from the Anta Sports conference call, highlighting the company's performance, strategic initiatives, and future outlook in the competitive sportswear industry.

Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Date**: May 9, 2025 Key Points Industry and Market Performance - Anta Sports maintains stable discount levels at retail, with manageable inventory, expecting sales growth driven by the 618 shopping festival, while remaining cautious about the domestic economic situation's impact on future months [2][4] - The company reported good revenue growth in Q1 2025, with a positive outlook for Q2 despite slight early July fatigue, supported by strong performance during the May Day holiday [4] Brand Acquisition and Strategy - The acquisition of the Jack Wolfskin brand is expected to be completed between Q2 and Q3 of 2025, with a focus on integrating operations over the next six months to a year, prioritizing the Chinese market and adopting a Direct-to-Consumer (DTC) model [2][5][6] - Anta anticipates significant improvement potential for Jack Wolfskin in both the Chinese and German markets, with a transition period expected in 2025-2026 [2][7] FILA Brand Performance - FILA has shown stable performance, with expectations for continued growth under the new leadership of Jiang Yan, focusing on core products and reducing SKU counts to create best-sellers [2][8][9] Future Product and Channel Strategy - Anta plans to continue its investor strategy in 2025, with new products expected to launch in Q1 2026, emphasizing multi-scenario consumption and maintaining VIP customer loyalty [2][9] - The company is optimizing its online channel strategy to increase the online sales proportion of its main brand [3][14] Store Expansion and Innovation - Anta is expanding its store formats, with plans to increase the number of Champion stores from 80 to 120 and Super Anta stores from 50 to 100 by the end of 2025 [11] - The Super Anta stores are designed to attract high-end consumers, while the regular Anta stores will gradually decrease in number [13] Stock Buyback and Market Confidence - Anta Group plans to repurchase HKD 10 billion worth of shares, having completed HKD 2 billion so far, indicating confidence in market prospects [3][18] Pricing and Sales Strategy - The pricing strategy for FILA remains stable, with adjustments made to certain series to attract more customers, particularly in children's apparel [10] - Anta is focusing on reducing return rates during major sales events by optimizing promotional strategies and prioritizing low-return products [15][16] Urban Market Dynamics - Profitability varies by city tier, with second and third-tier cities showing the highest profitability, while first-tier cities face lower single-store profitability due to high rent [21] - Anta plans to close 100 to 200 outdated stores in lower-tier cities due to reduced foot traffic [21] Sales Performance During Holidays - During the May Day holiday, high-end small brands performed well, while Anta and FILA met expectations overall [22]