Core Insights - Amer Sports Inc. is highlighted as a promising investment opportunity, with UBS raising its price target to $54 from $52 while maintaining a Buy rating due to strong growth prospects, particularly for brands like Arc'teryx and Salomon [1] - The company reported a significant revenue increase of 30% year-over-year in Q3 2025, totaling $1.76 billion, which exceeded market expectations [2][3] - Amer Sports' adjusted net income rose to $185 million, a substantial increase from $71 million in the previous year, leading to an adjusted diluted EPS of $0.33, up from $0.14 [3] Financial Performance - Q3 2025 revenue reached $1.76 billion, surpassing expectations by $29.35 million [2] - Adjusted gross margin improved by 2.4% to 57.9%, while adjusted operating margin expanded by 1.3% to 15.7% [2] - Direct-to-Consumer (DTC) sales surged by 51%, particularly driven by the Salomon brand in Greater China and the APAC region [3] Brand and Segment Performance - Technical Apparel revenue, led by Arc'teryx, increased by 31% to $683 million [3] - The growth was broad-based across various segments and geographies, indicating strong overall performance [3] Company Overview - Amer Sports Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories globally, operating through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports [4]

Core Viewpoint - Anta Sports Products Ltd. is exploring a potential takeover of Puma SE, with discussions being preliminary and involving potential partnerships with private equity firms [1][3]. Group 1: Anta Sports - Anta is working with an adviser to evaluate a bid for Puma and may collaborate with a private equity firm if it proceeds [1]. - Anta has a market value of $31 billion and has gained 10% in Hong Kong trading this year [5]. - Anta previously led a consortium that acquired Amer Sports for $5.2 billion in 2019, maintaining its position as the largest investor after Amer's IPO in New York [5]. Group 2: Puma - Puma shares surged 19% in Frankfurt trading, marking the largest increase since October 2001, but had previously dropped 62% this year, resulting in a market value of €2.5 billion ($2.9 billion) [2][3]. - The valuation expectations of Puma's largest shareholder, the Pinault family, may pose a significant challenge to any potential transaction [3]. - The Pinault family's Artémis holding company owned 29% of Puma at the end of the previous year [4]. Group 3: Other Potential Bidders - Other potential bidders for Puma include rival Chinese apparel firm Li Ning, which is exploring financing options with banks [2]. - Li Ning's stock has risen about 7% in 2025, giving it a market value of $5.8 billion [6]. - Asics Corp. has stated it is not in talks and has no plans to acquire Puma, while Li Ning has indicated it remains focused on its brand growth without conducting substantive negotiations regarding Puma [6].

Core Viewpoint - Puma's shares have surged following reports that Anta Sports Products is exploring a potential takeover of the German sports company, indicating strong interest from Asian firms in acquiring Puma [2][3]. Company Overview - Puma has been refocusing its activities on key sports categories, particularly soccer, under the leadership of new CEO Arthur Hoeld [10]. - The company has faced challenges in generating consumer enthusiasm for its product ranges in recent years [10]. Market Activity - Puma's shares increased nearly 15% in early Frankfurt trading, although they remain down over 50% year-to-date [3]. - The market value of Puma prior to the takeover rumors was approximately $2.9 billion [5]. Potential Bidders - Anta Sports, which has a market capitalization of around $31 billion and owns brands like Fila and Jack Wolfskin, is reportedly working with an adviser to evaluate a bid for Puma [3][8]. - Other potential bidders include Chinese rival Li Ning Co. and Japan's Asics Corp. [3]. Financial Context - Anta's previous acquisition of Amer Sports for $5.2 billion in 2019 demonstrates its capability to finance large transactions [4]. - Anta's strong cash position and free cash flow generation suggest it can manage the financial aspects of a potential acquisition [8]. Strategic Implications - Acquiring Puma would allow Anta to expand its footprint in competitive markets like North America and EMEA [7]. - Anta's strategy involves buying scale while preserving brand autonomy, as seen in its handling of Fila China and Amer Sports [8]. Future Outlook - Puma aims to return to growth by 2027 and re-establish itself as a top three sports brand globally, which includes plans to cut 900 jobs and sharpen its focus on running, soccer, and training [11].

Core Viewpoint - Anta Sports Products Ltd. is exploring a potential takeover of Puma SE, with discussions being preliminary and involving potential partnerships with private equity firms [1][3]. Group 1: Anta Sports and Potential Bidders - Anta is working with an adviser to evaluate a bid for Puma and may collaborate with a private equity firm if it proceeds [1]. - Other potential bidders for Puma include Li Ning Co, which is exploring financing options, and Asics Corp from Japan [2][5]. Group 2: Puma's Current Situation - Puma shares have increased by 11% on Germany's Tradegate exchange, but the company has seen a 62% drop in shares in Frankfurt this year, leading to a market value of €2.5 billion ($2.9 billion) [2][3]. - The Pinault family's Artémis holding company owned 29% of Puma at the end of the previous year, which may pose a challenge for any transaction due to high valuation expectations [3][4]. Group 3: Puma's Financial Performance and Strategy - Puma reported €281.6 million in net income and €8.8 billion in sales last year, with sponsorships including Manchester City and the Portugal national team [8]. - The company is undergoing a revamp under new CEO Arthur Hoeld, focusing on running, football, and training, and plans to cut 900 jobs to return to growth by 2027 [7][9].

Investment Rating - The report maintains a "Buy" rating for several key companies in the textile and apparel industry, including Shenzhou International, Tabo, and Anta Sports [5][12][35]. Core Insights - Amer Sports reported a significant performance in Q3 2025, with adjusted net profit increasing by 161% and revenue growing by 30% year-on-year to $1.76 billion [1][15]. - The report highlights the strong growth in the Technical Apparel segment, particularly driven by the Arc'teryx brand, which saw a 31% revenue increase in Q3 2025 [16]. - The Outdoor Performance segment, led by Salomon, experienced a 36% revenue growth in Q3 2025, with direct-to-consumer (DTC) sales rising by 67% [22]. - The Ball & Racquet segment, centered around Wilson, achieved a 16% revenue increase in Q3 2025, with plans to expand store presence in China [25]. Summary by Sections Amer Sports Q3 2025 Performance - Adjusted net profit grew by 161% to $185 million, with revenue reaching $1.76 billion [1][15]. - Revenue growth by region: Americas +18%, Greater China +47%, EMEA +23%, Asia Pacific +54% [1][15]. - Expected revenue growth for 2025 is projected at 23%-24% [1][15]. Technical Apparel - Revenue increased by 31% to $683 million in Q3 2025, with a DTC revenue growth of 46% [16]. - The segment's adjusted operating profit margin (OPM) decreased by 1 percentage point to 19% [16]. Outdoor Performance - Revenue rose by 36% to $724 million in Q3 2025, with a 67% increase in DTC sales [22]. - The segment's adjusted OPM improved by 4.2 percentage points to 21.7% [22]. Ball & Racquet - Revenue grew by 16% to $350 million in Q3 2025, with an adjusted OPM increase of 0.7 percentage points to 7.6% [25]. - The segment's growth was primarily driven by apparel and racquet products, with plans to open 35 new stores in China [25]. Investment Recommendations - The report recommends several companies based on their strong fundamentals and growth potential, including Shenzhou International, Tabo, and Anta Sports, with respective PE ratios of 14x, 15x, and 16x for 2025 [32][33][35].

Summary of Anta Sports Products Conference Call Company Overview - **Company**: Anta Sports Products (2020.HK) - **Related Company**: Amer Sports Key Industry Insights - **Amer Sports Performance**: Amer Sports reported a strong 3Q performance with an adjusted EPS of $0.33, exceeding consensus estimates of $0.25. Revenue increased by 29.7% year-over-year, surpassing expectations of 27.2% [1][3] - **Greater China Growth**: The Greater China market showed robust growth at 47% year-over-year, up from 42% in the previous quarter, with notable performance from brands like Salomon and Wilson [2][11] - **Arc'teryx Recovery**: The Arc'teryx brand experienced a recovery in Q4 after a slow start, attributed to cooler weather, which positively impacted sales [2][3] Financial Outlook - **Guidance Update**: Amer Sports raised its FY25 sales and EPS guidance, although the guidance for Q4 is slightly below consensus forecasts [1][3] - **Anta's Financials**: Anta's adjusted EPS is projected to be between $0.88 and $0.92, higher than previous estimates. The anticipated associate income from Amer to Anta is approximately RMB 1,170 million, representing about 9% of Anta's net income [10][11] Market Dynamics - **Outdoor Segment Trends**: The outdoor segment is expected to peak in Q4, with brands that have strong market presence likely to capitalize on peak season sales. However, some outdoor brands are showing signs of growth moderation and increased discounting due to competitive pressures [4][5] - **Consumer Preferences**: There is a sustained consumer preference for outdoor activities, leading to a shift from casual wear to outdoor apparel [3][4] Risks and Challenges - **Anta Brand Performance**: Concerns exist regarding the muted growth outlook for the Anta brand, particularly during the Double-11 shopping festival [5][21] - **Competitive Pressures**: Some outdoor brands are facing deeper discounting and growth slowdowns, which could impact overall market dynamics [4][21] Strategic Initiatives - **Store Expansion Plans**: Arc'teryx plans to close some stores in China while opening larger, more productive direct-to-consumer (DTC) stores, with expectations for net openings in Greater China into 2026 [13] - **Salomon's Growth**: Salomon's footwear segment continues to show strong growth, contributing positively to the outdoor segment's performance [12] Valuation and Investment Recommendation - **Price Target**: Anta is rated as a "Buy" with a 12-month price target of HK$115, indicating a potential upside of 43.6% from the current price of HK$80.10 [20][22] - **Valuation Metrics**: The valuation is based on a 21x P/E for 2027E, discounted back to mid-2026E at 11% [20] Conclusion - The overall outlook for Anta Sports Products remains positive, driven by strong performance from associated brands and a favorable market environment for outdoor activities, despite some near-term challenges and competitive pressures.

Core Insights - Amer Sports, Inc. reported stronger-than-expected third-quarter results, driven by strong performance in outdoor brands and effective cost management [1] - The company raised its 2025 GAAP earnings guidance to a range of 88 to 92 cents per share, exceeding analyst expectations [2] - Despite positive results, there are concerns regarding brand challenges in China and a cautious outlook for future performance [1][5] Financial Performance - The third-quarter adjusted earnings per share were 33 cents, surpassing the analyst consensus estimate of 25 cents [1] - Revenue exceeded forecasts, particularly in the Outdoor Performance segment, with notable contributions from the Salomon brand [3] - Comparable sales for the Arc'teryx brand increased by approximately 27% [3] Guidance and Outlook - The company raised its full-year 2025 revenue growth and EPS guidance, with initial 2026 revenue expectations positioned at the high end of long-term growth targets [4] - Analyst Brooke Roach noted that the fourth-quarter sales and EPS guidance appears modestly below current consensus [5] - Commentary during the upcoming conference call is expected to be critical for stock direction, especially regarding trends for Arc'teryx and performance in China [6] Market Reaction - Following the announcement, Amer Sports shares increased by 7.93%, reaching $33.19 [6]

Core Insights - Amer Sports reported a strong third quarter, with revenue soaring 30% and significant growth across all operating segments, leading to a 10% increase in stock price [1][5] - The company has raised its guidance for sales and profitability, now expecting at least 23% sales growth and improvements in gross and operating margins [3][4] - Popular brands like Salomon and Arc'teryx are driving sales and profitability, appealing to both professional athletes and outdoor enthusiasts [4][7] Financial Performance - Revenue increased by 30% in Q3, exceeding sales and margin expectations across all three operating segments [5] - The company has raised its revenue growth forecast to at least 20% for the year, with management now boosting this guidance further [3][4] - Earnings per share (EPS) have also seen a meaningful increase alongside the raised guidance for gross and operating margins [4] Market Reaction - Following the strong quarterly results, investors responded positively, driving Amer Sports' stock price up by as much as 10% [1] - After a previous decline of over 20% in stock price over the last three months, there has been a notable rebound as investors buy back in [5][7]

Financial Data and Key Metrics Changes - Amer Sports reported a 30% growth in sales for Q3, with an adjusted operating margin increase of 130 basis points and adjusted EPS more than doubling [5][22][24] - Adjusted gross margin increased by 240 basis points to 57.9%, driven by favorable channel, geographic, product, and brand mix [23][35] - Adjusted net income for Q3 was $185 million, compared to $71 million in the prior year, with adjusted diluted EPS rising to $0.33 from $0.14 [24][40] Business Line Data and Key Metrics Changes - Technical apparel revenues increased by 31% to $683 million, led by Arc'teryx, with direct-to-consumer growth of 46% [24][25] - Outdoor performance segment revenues rose by 36% to $724 million, driven by strong performance in Salomon footwear and apparel [30][35] - Ball and racket segment revenue increased by 16% to $350 million, with significant growth in soft goods and racket sports [17][36] Market Data and Key Metrics Changes - Regional growth was led by Asia-Pacific, which increased by 54%, followed by China at 47%, EMEA at 23%, and the Americas at 18% [22][23] - Salomon footwear showed strong demand across all regions, particularly in Asia, with a notable increase in brand awareness among younger consumers [14][15][31] - The company experienced double-digit revenue growth across all four regions in Q3, with momentum continuing into Q4 [6][22] Company Strategy and Development Direction - Amer Sports aims to leverage its unique portfolio of premium brands to capture market share in the sports and outdoor sectors [7][8] - The company is focusing on expanding its direct-to-consumer channels and optimizing its retail footprint, particularly in Greater China and North America [26][29] - The strategy includes opening new flagship stores and enhancing brand presence in key metro markets [15][27][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong brand performance and market demand [7][20] - The company anticipates continued momentum into 2026, with revenue growth expected towards the high end of the low double-digit to mid-teens range [40][43] - Management addressed the impact of a recent incident in China, noting a temporary dip in sales but a subsequent recovery [8][46][48] Other Important Information - The company plans to open approximately 25 net new Arc'teryx stores for the full year, with a focus on North America [26][27] - Corporate expenses increased to $38 million from $23 million in the prior year, reflecting ongoing investments in growth [24] - The company is raising its full-year revenue, operating margin, and EPS expectations based on strong Q3 results [40][41] Q&A Session Summary Question: Impact of the fireworks incident on sales in China - Management noted that Arc'teryx's sales trends were softer at the beginning of Q4 but have since rebounded as weather cooled [46][47] Question: Confidence in guiding 2026 revenue growth - Management expressed confidence in achieving mid-teens growth in 2026 due to a solid foundation built in 2025 [50][51] Question: Update on Salomon's distribution and growth in the U.S. - Management highlighted the focus on building a strong presence in the U.S. market, with plans for more epicenter stores and strategic partnerships [58][64] Question: Long-term opportunity for Tennis 360 stores - Management discussed the growth of Tennis 360 stores in China and the U.S., emphasizing the potential for expansion in southern markets [73][75] Question: Margin guidance for next year - Management indicated that margin expansion will primarily be driven by gross margin improvements and strategic investments [79][80]

Amer Sports Third Quarter 2025 FORWARD LOOKING STATEMENTS This presentation contains statements that constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Many of the forward-looking statements contained herein can be identified by the use of forward-looking words such as "anticipate," "believe," "may," "will," "expect," "coul ...