2025-09-07 16:19Summary of Anta Sports Products Conference Call Company Overview - Company: Anta Sports Products (2020.HK) - Market Cap: HK$262.8 billion / $33.7 billion - Enterprise Value: HK$302.7 billion / $38.8 billion - 3m ADTV: HK$892.0 million / $113.8 million Key Industry Insights - Market Sentiment: The market has largely absorbed the mediocre trading performance of Anta and Fila in the third quarter to date (3QTD) [1] - Growth Drivers: Strengthened product offerings are identified as the key growth pillar for the Anta brand, with visible changes in Fila expected by early 2026 [1] - Smaller Brands Performance: Smaller brands experienced natural growth moderation in 3QTD compared to 2Q25, but still showed robust performance against peers [1] Financial Performance and Projections - Revenue Growth: Anta and Fila reported positive year-over-year growth in July and August, despite challenges such as unfavorable weather and a low season in July [2] - Management Outlook: The management expressed cautious optimism regarding the consumption environment, anticipating weak consumer willingness in September [2] - Cost Control: The company demonstrated industry-leading cost control capabilities, with a confident tone regarding achieving operating profit margin (OPM) targets across brands [1] Strategic Initiatives - M&A Exploration: Anta is actively exploring new mergers and acquisitions in various sports verticals globally, with a thoughtful decision-making process focusing on product quality and reasonable valuations [1][20] - Product Focus: Significant efforts have been made to enhance product offerings, particularly in running and outdoor products, which are expected to benefit from seasonal trends [20] Financial Forecasts - Revenue Projections: - 2024: Rmb 70,826 million - 2025E: Rmb 80,548 million - 2026E: Rmb 89,250 million - 2027E: Rmb 98,183 million [7] - EBITDA Projections: - 2024: Rmb 19,658 million - 2025E: Rmb 22,611 million - 2026E: Rmb 25,869 million - 2027E: Rmb 28,933 million [7] - EPS Projections: - 2024: Rmb 5.55 - 2025E: Rmb 4.82 - 2026E: Rmb 5.48 - 2027E: Rmb 6.23 [7] Risks and Challenges - Key Risks: Potential risks include weaker growth for Anta and Fila, discount pressures, and challenges in operating expense control [22] Conclusion - Investment Rating: The company maintains a "Buy" rating, with a price target of HK$121 based on a 21x 2027E P/E ratio [21]