Goldman Sachs maintains a "buy" rating on ANTA SPORTS (02020) with a target price of HK$111.

Goldman Sachs released a research report stating that it maintains a "buy" rating on ANTA SPORTS (02020) mainly due to its multi-brand strategy, which will make market share and profit growth more flexible, with a target price of HK$111 remaining unchanged. Goldman Sachs is encouraged by Amer Sports' performance, expecting a net profit of 448 million RMB from its joint venture with Amer Sports. The report mentioned that Amer Sports, in which ANTA holds a stake, reported an adjusted EBITDA of $255 million in the third quarter, and raised its 2024 fiscal year guidance to adjusted earnings per share in the range of $0.43-0.45, mainly driven by high revenue growth (16-17%) and stable operating profit margin guidance. Confidence remains to reach its long-term growth target by 2025, with adjusted operating profit margins increasing by around 30-70 basis points annually. The expansion of operating profit margins comes from the expansion of gross profit margins.