Bank of China International: Maintains confidence in the profits of SHENZOU INTL(02313), ANTA SPORTS(02020) may indirectly benefit.

Bank of China International released a research report stating that since NIKE, Inc. Class B (NKE.US) lowered its profit guidance in June, the problems of NIKE, Inc. Class B are more severe than expected. On the one hand, it is believed that the demand for the brand in the West and China will face challenges, and it will take one to two years to readjust. On the other hand, this will bring uncertainty to the orders of the company's suppliers. The bank expects downstream issues to be more severe, especially in China. At the same time, considering the resilience of the upstream leaders in adjusting orders, a positive view is maintained on these companies. Therefore, the bank remains confident in the profitability of SHENZHOU INTL (02313). On the downstream side, the bank expects ANTA SPORTS (02020) to indirectly benefit from the plight of NIKE, Inc. Class B, but considering the tough retail environment in China, there is a more cautious stance on the stock in the short term. The bank added that TOPSPORTS (06110) is expected to have a difficult year until the end of the 2025 fiscal year. Its offline sales are expected to be far below previous expectations. According to the bank's latest estimates, its net profit for the 2025 fiscal year is expected to drop by 37% year-on-year, and the second half of the fiscal year until the end of February will be more challenging. Its future profit recovery will depend on the resilience of NIKE, Inc. Class B and the speed of adjusting its business focus, such as accelerating the opening of other brand stores.