Summary of Anta Sports Conference Call Company Overview - **Company**: Anta Sports - **Date**: September 10, 2025 Industry Insights - **Market Size**: The Chinese sports footwear and apparel market is approximately 400 billion RMB, with a compound annual growth rate (CAGR) of 17% over the five years prior to the pandemic. Post-pandemic growth has slowed, with a projected growth rate of 6% in 2024, but the penetration rate continues to rise, indicating strong growth potential in the sports apparel sector [2][6][29]. - **Brand Concentration**: The Chinese sports footwear and apparel market has a high brand concentration, with numerous comprehensive sports brands. As consumer engagement in sports deepens, niche brands are expected to see greater growth opportunities [2][11]. Financial Performance - **Revenue**: Anta Group's total revenue for 2024 exceeded 100 billion RMB, with the main brand accounting for less than half of this revenue. The operating profit margin for Anta is approximately 20%, while Fila accounts for nearly 40% of revenue with a profit margin of about 25% [2][12][14]. - **Growth Strategy**: Anta's diversified brand operation strategy allows it to expand into the entire footwear and apparel market, which is valued at 2.4 trillion RMB, creating a market expansion opportunity of about five times [2][12][23]. Globalization Strategy - **International Expansion**: Anta's globalization strategy is crucial for enhancing valuation and long-term growth potential. The overseas sports market is significantly larger than China's, with higher per capita consumption. Successful international expansion could lead to substantial increases in both valuation and profitability, referred to as a "Davis Double" [2][5][26][29]. - **Store Presence**: Anta currently operates over 240 stores internationally, including in Southeast Asia, the Middle East, and Europe, and has established strategic partnerships with leading distributors in these regions [2][26][27]. Competitive Landscape - **Valuation Comparison**: International sports brands generally have higher price-to-earnings (PE) ratios compared to domestic brands, reflecting their cross-regional growth potential. Anta's current valuation is around 15 times, which is considered low given its growth prospects [3][28][29]. - **Market Trends**: The market is witnessing a shift towards functional specialization in daily leisure needs and a trend towards social demand in the mid to high-end footwear and apparel market, which is valued at approximately 500 billion RMB [16][20]. Brand Strategy and Positioning - **Brand Operations**: Anta's strategy involves operating multiple brands to cater to different consumer segments, extending beyond just sports footwear and apparel. This approach has allowed Anta to capture a larger market share and enhance its brand presence [23][30]. - **Product Design Success**: Anta has successfully launched products like the PG7 running shoes, which combine professional technology with affordability, enhancing its competitive edge in the market [17][30]. Future Opportunities - **Market Growth Potential**: The increasing depth and frequency of consumer participation in sports in China will provide significant growth opportunities for niche sports footwear and apparel segments [15][24]. - **Social Media Engagement**: Anta's brands have shown a significant increase in social media engagement and search interest, indicating a positive trend that could translate into sales growth [25][30]. Conclusion Anta Sports is positioned for substantial growth through its globalization strategy, diversified brand operations, and strong market presence. The company is well-placed to capitalize on emerging trends in consumer behavior and market dynamics, potentially leading to significant valuation increases in the coming years [32].

Investment Rating - The investment rating for the company is "Outperform the Market" [5][40]. Core Views - The company is expected to achieve double-digit growth in both revenue and core profit in the first half of 2025, driven by its brand matrix [1][7]. - The management remains confident in the company's development and has updated the guidance for 2025, indicating continued growth potential [3][37]. - The acquisition of JACK WOLFSKIN is expected to enhance the outdoor brand matrix and contribute positively to future growth [30]. Revenue and Profitability - In the first half of 2025, the company's revenue increased by 14.3% year-on-year to 38.54 billion RMB, while the net profit attributable to shareholders rose by 14.5% to 7.03 billion RMB [1][7]. - The revenue breakdown by brand shows Anta at 16.95 billion RMB (up 5.4%), FILA at 14.18 billion RMB (up 8.6%), and other brands at 7.41 billion RMB (up 61.1%) [2][7]. - The overall gross margin decreased by 0.7 percentage points to 63.4%, while the operating profit margin improved by 0.6 percentage points to 26.3% due to effective cost control [1][8]. Brand Performance - Anta brand's revenue growth is attributed to refined operations and a push for globalization, with a gross margin of 54.9% [25]. - FILA brand focuses on high-end sports fashion and professional breakthroughs, achieving a revenue of 14.18 billion RMB with a gross margin of 68.0% [29]. - Other brands, including DESCENTE and KOLON SPORT, saw significant growth, with a revenue increase of 61.1% and a gross margin of 73.9% [30]. Financial Forecasts - The company forecasts net profits of 13.48 billion RMB, 15.46 billion RMB, and 17.36 billion RMB for 2025, 2026, and 2027 respectively, with corresponding growth rates of 13.0%, 14.6%, and 12.3% [3][40]. - The reasonable valuation has been adjusted to 119-124 HKD, corresponding to a PE ratio of 23-24x for 2025 [3][40]. Cash Flow and Financial Health - The net cash position is reported at 31.54 billion RMB, indicating a strong financial condition [1][22]. - The company declared an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1][22].

Core Viewpoint - Anta Group demonstrated strong resilience in its performance, achieving over 14% growth in the first half of the year, contrasting with a relatively weak sports goods market in 2025, which is termed a "small sports year" [1] Group Performance - Anta Group's revenue reached 38.54 billion yuan, a year-on-year increase of 14.3%, with a significant gap of over 15 billion yuan compared to Nike China's half-year revenue [1] - The group's operating profit was 10.131 billion yuan, up 17%, with an operating profit margin of 26.3%, exceeding market expectations [1] Brand Performance - Revenue by brand: Anta brand generated 16.95 billion yuan (up 5.4%), Fila brand reached 14.18 billion yuan (up 8.6%), and other brands including Kolon and Descente totaled 7.41 billion yuan (up 61.1%), all achieving record highs [3] - Amer Sports, controlled by Anta Group, reported a revenue increase of 23.5% to 2.709 billion USD, with Greater China revenue up 42.4% to 856 million USD [3] Multi-Brand Strategy - Anta Group's multi-brand strategy has been validated, with all brands showing strong performance and high growth rates, indicating the effectiveness of its multi-brand management capabilities [3][6] - The company is deepening its multi-brand operational precision, providing new growth momentum [3] Retail and Channel Development - Anta Group enhanced retail capabilities through new store formats, such as "Anta Arena" and "Anta Palace," which significantly increased sales and became key growth drivers [4] - Fila opened its first Fila Fusion and Fila Kids stores, while Kolon launched its flagship store in Chengdu, and Descente upgraded its stores to improve operational efficiency [4] Product Innovation - Anta Group integrated its advantages and research resources to offer superior products, with popular items like the PG7 running shoes and "Anta Membrane" driving consumer growth [5] - Fila's innovative products, such as dad shoes and elite running shoes, also saw significant sales increases [5] Core Competencies - Anta Group has developed a unique business model combining "brand + retail," leveraging three core competencies: multi-brand collaborative management, multi-brand retail operation, and global operation and resource integration [7] - This model supports the company's ability to meet diverse consumer needs and expand into new markets [7] Expansion and Acquisition - Anta Group's acquisition of the German outdoor brand Jack Wolfskin and the establishment of a joint venture with South Korean fashion group Musinsa are expected to broaden its consumer base and enhance its market presence [8] - The company is implementing a global strategy to penetrate mature markets like North America and expand aggressively in high-growth regions such as Southeast Asia [8][9]

Investment Rating - The report maintains a "Buy" rating for Anta Sports [5][7] Core Views - Anta Sports demonstrated strong sales growth in Q2 2025, with a notable performance across its multi-brand portfolio, achieving overall sales growth in the first half of 2025 [1][4] - The report anticipates a revenue growth of 11% for 2025, with a net profit growth of 13% compared to 2024, excluding one-time gains [4] Summary by Sections Anta Brand - In Q2 2025, Anta brand sales grew by a low single-digit percentage year-on-year, a slowdown compared to the high single-digit growth in Q1 2025. This is attributed to store optimization efforts and cautious discounting during the "618 Shopping Festival" [2] - The inventory turnover ratio for Anta brand is expected to remain around 5, indicating a healthy operational level [2] - For H2 2025, sales growth is expected to accelerate as the brand continues to optimize product structure and channel efficiency [2] Fila Brand - Fila brand achieved a mid-single-digit year-on-year sales growth in Q2 2025, with strong performance expected in its core products and e-commerce channels [3] - The brand's inventory turnover ratio is also projected to maintain around 5, with stable discounts in physical stores [3] - For H2 2025, Fila is expected to continue its strong growth trajectory, supported by an expanded product range [3] Other Brands - Other brands within the Anta portfolio saw a remarkable sales growth of 50% to 55% in Q2 2025, driven by improved product offerings and store operations [4] - The acquisition of Maia Active in 2023 is expected to contribute positively to growth, alongside the recent acquisition of outdoor brand Jack Wolfskin [4] - Overall, the company is projected to maintain robust revenue growth in 2025, particularly in its outdoor brands [4] Financial Projections - The report forecasts net profits for Anta Sports to be 135.12 billion yuan in 2025, with a corresponding P/E ratio of 17 times [5][6] - Revenue is expected to grow from 62.36 billion yuan in 2023 to 78.70 billion yuan in 2025, reflecting a compound annual growth rate [6][13]

Investment Rating - The report maintains a "Buy" rating for key companies in the sports footwear and apparel sector, specifically recommending Anta Sports, Li Ning, Xtep International, and 361 Degrees [7]. Core Insights - The sports footwear and apparel sector is expected to achieve steady growth in 2024, with a focus on leading companies' long-term investment value [1]. - In 2024, the combined revenue of four Hong Kong-listed sports footwear and apparel companies grew by 9% year-on-year to 123.2 billion yuan, while net profit attributable to shareholders increased by 36.21% to 21 billion yuan [1][11]. - The sector's stock prices have shown volatility but are expected to rise as consumer confidence improves and national policies stimulate demand [1][39]. Summary by Sections 2024 Review - The sports footwear and apparel sector demonstrated stable growth in terminal sales and maintained healthy inventory levels [1][11]. - The combined revenue of key companies in the sector showed consistent growth across the first and second halves of 2024, with a year-on-year increase of 9% [11]. - The inventory turnover days for major companies are healthy, averaging between 4-5 months, setting a solid foundation for growth in 2025 [1][24]. 2025 Outlook - The demand resilience in the sector is expected to continue, with a forecast for steady growth driven by recovering consumer confidence and an increasing preference for functional apparel [2][44]. - The report anticipates a trend of lower growth in the first quarter of 2025, followed by an increase in subsequent quarters, contingent on overall consumer sentiment improving [2][44]. Operational Trends - Companies are focusing on enhancing product quality, optimizing channel operations, and increasing marketing efforts to capture consumer attention [3]. - Key product categories such as running and outdoor gear are driving growth, with notable increases in sales for brands like Li Ning and Saucony [2][3]. - The report highlights the importance of channel optimization and marketing investments, with companies like 361 Degrees sponsoring major events to boost brand visibility [3][44]. Key Company Analysis and Investment Recommendations - Anta Sports is highlighted as a top pick due to its strong performance and expected revenue growth of 10.5% in 2025, with a projected net profit of 13% growth [45][46]. - Li Ning is expected to maintain stable revenue but face a decline in net profit due to prior asset impairments [45]. - Xtep International is projected to grow revenue by 7% and net profit by 10.3% in 2025, benefiting from its focus on professional sports segments [45][46]. - 361 Degrees is anticipated to achieve a 14% revenue increase and a 14.2% rise in net profit, supported by its broad market positioning [45][46].

证券研究报告·海外公司点评·纺织及服饰(HS) 股价走势 安踏体育（02020.HK） 2024 年业绩点评：新业态引领市场，看好 25 年延续增势 买入（维持） | [Table_EPS] 盈利预测与估值 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 62356 | 70826 | 78173 | 86079 | 94239 | | 同比(%) | 16.23 | 13.58 | 10.37 | 10.11 | 9.48 | | 归母净利润（百万元） | 10236 | 15596 | 13232 | 14763 | 16431 | | 同比(%) | 34.86 | 52.36 | (15.16) | 11.57 | 11.30 | | EPS-最新摊薄（元/股） | 3.65 | 5.56 | 4.71 | 5.26 | 5.85 | | P/E（现价&最新摊薄） | 23.50 | 15.43 | 18.18 | 16.30 | 14.64 | [Table_ ...

Investment Rating - The report maintains a "Buy" rating for Anta Sports [1] Core Views - Anta Sports reported a revenue of 70.83 billion yuan for 2024, representing a year-on-year increase of 13.6%, and a net profit of 15.60 billion yuan, up 52.4% year-on-year [7] - The company aims for high single-digit growth for its main brand by 2025, with significant contributions from various store formats and a strong performance in key markets [7] - FILA is expected to achieve mid-single-digit growth by 2025, with a notable increase in footwear sales [7] - Other brands under Anta Sports are projected to grow over 30% by 2025, driven by strong sales performance [7] - Amer Sports is anticipated to see a revenue growth of 13%-15% in 2025, following a successful turnaround [7] - The report adjusts the net profit forecast for 2025-2026 slightly downward but increases the 2027 forecast, maintaining a positive outlook on the company's growth trajectory [7] Financial Summary - Total revenue projections for Anta Sports are as follows: 70.83 billion yuan in 2024, 78.17 billion yuan in 2025, 86.08 billion yuan in 2026, and 94.24 billion yuan in 2027 [1] - The net profit estimates are 15.60 billion yuan for 2024, 13.23 billion yuan for 2025, 14.76 billion yuan for 2026, and 16.43 billion yuan for 2027 [1] - The report indicates a slight decrease in gross margin to 62.2% in 2024, with expectations for gradual recovery in subsequent years [7] - The company's P/E ratios are projected to be 15.43 for 2024, 18.18 for 2025, and 16.30 for 2026 [1]

Investment Rating - The report maintains an "Outperform" rating for Anta Sports [3][40]. Core Views - Anta Sports is expected to achieve a core net profit growth of 16.5% in 2024, with a revenue increase of 13.6% to 70.83 billion RMB, excluding non-cash profits from Amer Sports [1][7]. - The company is optimistic about the growth potential in the Chinese sports consumption market, with management projecting high single-digit growth for the Anta brand and over 30% growth for other brands in 2025 [2][39]. Financial Performance Summary - **Revenue and Profit**: In 2024, Anta's revenue is projected to reach 70.83 billion RMB, with a core net profit of 11.93 billion RMB, reflecting a 16.5% increase [1][4]. - **Brand Performance**: Revenue from Anta, FILA, and other brands is expected to be 33.5 billion RMB, 26.6 billion RMB, and 10.7 billion RMB respectively, with growth rates of 10.6%, 6.1%, and 53.7% [2][7]. - **Profit Margins**: The overall gross margin is projected to be 62.2%, with a decline of 0.4 percentage points from the previous year, while the operating profit margin is expected to decrease by 1.2 percentage points to 23.4% [8][29]. Brand-Specific Insights - **Anta Brand**: Revenue is expected to grow by 10.6% to 33.5 billion RMB, with a focus on e-commerce and new retail formats [18][19]. - **FILA Brand**: Revenue growth of 6.1% is anticipated, driven by professional sports series and e-commerce channels, despite a decline in profit margins [22][23]. - **Other Brands**: Significant growth of 53.7% is expected, with Descente and Kolon achieving strong performance [24][26]. Cash Flow and Dividend Policy - The company maintains a robust cash flow with a net cash position of 31.4 billion RMB and a dividend payout ratio of 51.4% [15][39]. - Operating cash inflow is projected at approximately 16.74 billion RMB, indicating a healthy net cash ratio [15][39]. Future Outlook - The report projects net profits for 2025-2027 to be 13.48 billion RMB, 15.46 billion RMB, and 17 billion RMB respectively, with a corresponding growth rate of 13.0%, 14.7%, and 10.0% [3][39]. - The reasonable valuation is adjusted to 113-118 HKD, reflecting an increase from the previous estimate of 103-112 HKD [3][39].

公司于 3 月 19 日公布 2024 年年报。全年实现营收 708.3 亿元， 同增 13.0%，不包含 Amer Sports 上市收益的归母净利润 119.3 亿 元，同增 16.5%，多品牌矩阵保持快速发展趋势。公司 2024 年预 计总计派发股息 2.36 港元，派息率为 51.4%，维持买入评级。 安踏牌：多店型策略显效，核心场拉动增长。24 全年安踏主品牌 营收为 335.2 亿元，同增 10.6%，其中核心场拉动作用显著，超级 安踏、作品集等新零售业态店效持续提升，部分超级安踏店店效已 提升至传统店 3 倍。同时安踏爆品策略进一步强化，24 年新品 PG7 跑鞋凭借其高性价比上市三个月内销售量破百万双。安踏儿童方 面亦延续推出安踏 CAMPUS 特色门店新业态，已在一线城市高端商 场开设，店效达到传统店态 2 倍，增长潜力显著。 FILA：儿童、潮牌调整迅速，鞋类心智强化。FILA 品牌营收为 266.3 亿元，同增 6.1%，其中鞋类拓展顺利，24 年增长超 10%、达 2300 万双，预计 25 年进一步打造鞋类百万 IP，拉动品牌增长。FILA 儿 童、潮牌的增量品类鞋、书包等亦持续突破 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [3][40]. Core Insights - The company is expected to achieve a core net profit growth of 16.5% in 2024, with a revenue increase of 13.6% to 70.83 billion RMB. The net profit attributable to shareholders is projected to grow to 11.93 billion RMB, excluding non-cash gains from Amer Sports [1][7]. - The company maintains a high dividend payout ratio of 51.4% and has repurchased approximately 1.28 billion HKD worth of shares during the year [1][15]. - The management remains optimistic about the growth prospects of the sports consumption market in China, with expectations for significant growth across its brand portfolio [2][39]. Financial Performance Summary - **Revenue and Profit Growth**: The company reported a revenue of 70.83 billion RMB in 2024, reflecting a 13.6% year-on-year increase. The core net profit is expected to reach 11.93 billion RMB, marking a 16.5% increase [1][7]. - **Brand Performance**: Revenue from the Anta brand reached 33.52 billion RMB, up 10.6%, while FILA's revenue grew by 6.1% to 26.63 billion RMB. Other brands saw a significant increase of 53.7% to 10.68 billion RMB [2][24]. - **Profit Margins**: The overall gross margin for 2024 is projected at 62.2%, a slight decrease from 62.6% in 2023. The operating profit margin is expected to be 23.4%, down from 24.6% [8][29]. Brand and Market Strategy - **Anta Brand**: The Anta brand is focusing on new retail formats and has launched successful products like the PG7 running shoes. The brand's revenue from e-commerce channels grew by 20.7% [2][19]. - **FILA Brand**: FILA's revenue growth is driven by its professional sports series and footwear. The brand aims to enhance its product functionality and quality while expanding its retail presence [22][23]. - **Other Brands**: Brands like Descente and KOLON have shown strong growth, with Descente's revenue increasing by over 35% and KOLON by more than 60% [24][26]. Future Outlook - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 13.48 billion RMB, 15.46 billion RMB, and 17 billion RMB respectively, reflecting a growth rate of 13.0%, 14.7%, and 10.0% [3][39]. - The target price has been revised to 113-118 HKD, based on the updated profit forecasts, corresponding to a PE ratio of 22-23x for 2025 [3][40].