Core Viewpoint - Anta's main brand experienced a slight decline in revenue in Q4 2025, primarily due to fluctuating weather, misalignment of the Spring Festival, and weak consumer spending [1][2] Group 1: Anta Brand Performance - In Q4 2025, Anta's main brand revenue showed a low single-digit decline, transitioning from low single-digit growth in Q3 2025, with an estimated online growth and slight offline decline [2][4] - The inventory turnover ratio for Anta's main brand was slightly over 5 months, with stable offline discounts and a 2 percentage point reduction in online discounts year-on-year [2][3] - The company is focusing on differentiated store construction and new retail formats, such as Anta Champion Stores and Super Anta Stores, which are performing better than regular stores [2] Group 2: FILA Brand Performance - FILA's revenue in Q4 2025 showed a mid-single-digit year-on-year growth, accelerating from low single-digit growth in Q3 2025, with an estimated double-digit growth online [3][4] - The discount rates for FILA were approximately 73% offline and 55% online, with slight fluctuations due to seasonal promotions [3] - The "One FILA" strategy aims to drive brand growth through "brand elevation," "product innovation," and "retail upgrades," with effects gradually becoming evident in 2025 [3] Group 3: Other Brands Performance - Other brands collectively achieved a revenue growth of 35%-40% in Q4 2025 and 45%-50% for the entire year, with Kolon showing a growth rate of 55% in Q4 and nearly 70% for the year [3][4] - Descente is expected to grow by 25-30% in Q4 2025 and nearly 40% for the year, becoming the third brand under the group to exceed a retail scale of 10 billion [3] - Maia Active's revenue grew by 25-30% in Q4 2025, while the management team of Wolf Claw is focusing on revitalization strategies in key markets [3] Group 4: Future Outlook - For 2026, Anta's main brand is expected to continue channel innovation to boost brand performance, with anticipated improvements in e-commerce sales [4] - The operating profit margin is expected to slightly decline due to significant market investments in Anta and FILA, while Descente and Kolon are expected to maintain high profit margins [4] - Revenue forecasts for 2025-2027 are adjusted to 78.5 billion, 85.88 billion, and 93.29 billion respectively, with corresponding net profits of 13.23 billion, 14.08 billion, and 15.56 billion [4]

Core Viewpoint - Anta Sports reported a decline in brand revenue for Q4 2025, while Fila and other brands showed growth, indicating a mixed performance across its portfolio [1][2]. Anta Brand - In Q4 2025, Anta brand revenue decreased by a low single-digit percentage year-on-year, attributed to a weak domestic consumption environment and the delayed timing of the Chinese New Year [1]. - E-commerce sales are expected to show slight growth, while offline sales, particularly in children's apparel, face more significant pressure due to holiday consumption patterns [1]. - The inventory turnover ratio for Anta brand is projected to be slightly above 5, indicating a healthy inventory level [1]. - Looking ahead to 2026, improvements in e-commerce sales and differentiated store development are anticipated to enhance Anta's brand performance [1]. Fila Brand - Fila brand revenue grew in the mid-single digits year-on-year in Q4 2025, with an acceleration compared to Q3 [2]. - Despite external challenges affecting consumer demand, Fila achieved strong growth due to multi-faceted optimizations in branding, channels, and products [2]. - E-commerce is expected to see double-digit growth driven by major promotional events [2]. - The inventory turnover ratio for Fila is also projected to be slightly above 5, indicating a healthy state [2]. - For 2026, Fila aims to continue high-quality operations and optimize product structure to drive steady growth [2]. Other Brands - Other brands within the group experienced a revenue growth rate of 35% to 40% in Q4 2025, showcasing strong performance [2]. - Descente and KOLON are establishing strong brand power in the high-end outdoor segment, with market share expected to increase amid rapid growth in the domestic outdoor sports market [2]. - Maia Active is also anticipated to perform well in Q4 2025 following successful adjustments [2]. Financial Projections - For 2025, the company is expected to achieve a net profit of approximately 13.2 billion yuan, with a revenue growth of 10.9% to 78.564 billion yuan [3]. - The net profit for 2026 is projected to grow by 6.4% to 14 billion yuan, considering ongoing uncertainties in the consumption environment and costs associated with the acquisition of Jack Wolfskin [3]. - The company maintains a "buy" rating with adjusted profit forecasts for 2025-2027, estimating net profits of 13.194 billion, 14.035 billion, and 15.937 billion yuan respectively [3].

Investment Rating - The report maintains a "Buy" rating for Anta Sports [5] Core Views - Anta Sports is expected to have stable operations in 2025, with a focus on long-term multi-brand performance [1] - The company anticipates a revenue growth of over 10% in 2026, despite a slight decline in net profit margin [3] - The report highlights the strong performance of the Fila brand and other brands, with significant growth expected in the outdoor segment [2][3] Summary by Sections Anta Brand Performance - In Q4 2025, Anta brand revenue is expected to decline by a low single-digit percentage year-on-year, attributed to a weak domestic consumption environment and the late timing of the Chinese New Year [1] - The inventory turnover ratio for Anta is projected to be slightly above 5, indicating a healthy inventory level [1] Fila Brand Performance - Fila brand revenue is expected to grow in the mid-single digits year-on-year in Q4 2025, with a faster growth rate compared to Q3 [2] - The report anticipates double-digit growth for Fila's e-commerce sales during major promotional events [2] Other Brands Performance - Other brands under Anta are projected to see a revenue growth of 35% to 40% in Q4 2025, with strong brand presence in the high-end outdoor market [2] - The report indicates that Maia Active is also expected to perform well in Q4 2025 [2] Financial Projections - For 2025, the company is projected to achieve a revenue of approximately 785.64 billion yuan, with a net profit of around 13.2 billion yuan, reflecting an 11% increase from 2024 [3] - The expected net profit for 2026 is forecasted to be 14 billion yuan, representing a 6.4% growth [3] Valuation Metrics - The report adjusts profit forecasts for 2025-2027, estimating net profits of 131.94 billion yuan, 140.35 billion yuan, and 159.37 billion yuan respectively [3] - The projected P/E ratio for 2026 is 15 times [3]