CICC: Maintains "outperform" rating for ANTA SPORTS (02020) with a target price of HK$104.02.

CICC released a research report stating that it maintains a "outperform industry" rating for ANTA SPORTS (02020), with a basic 2024/25e EPS forecast of 4.16 yuan (non-GAAP)/4.80 yuan unchanged, and introduces a 2026 EPS forecast of 5.35 yuan, with a target price of 104.02 Hong Kong dollars. The bank believes that ANTA SPORTS' leading position and growth in the international sports brand market are not inferior to international peers, but its valuation is currently lower than international comparable companies, and there is still significant room for potential increase in the future. After more than 30 years of development, ANTA SPORTS has evolved from a local sports brand with its main brand ANTA becoming the market leader in China, to synergizing multiple brands and surpassing Nike in overall domestic market share, to successfully building a global presence. The bank revisited the company's history of boldly seizing opportunities and actively responding to challenges, and identified the internal reasons for ANTA's success: ANTA has developed strong strategic clarity, effective execution, and efficient synergy through self-growth. Key points from CICC's analysis are as follows: ANTA is the world's third-largest sports footwear and apparel group, leading the global industry and Chinese consumer market. The company's brand matrix is comprehensive, having the most star sports brands globally; it has the second-highest directly operated store rate in the world and world-leading retail efficiency at the terminal; its marketing effectively integrates Chinese athletic spirit and international trends, with a prominent brand image; its technology patent volume ranks first among Chinese sports brands; profitability and turnover efficiency lead the international industry; its ESG performance is the best among Chinese sports goods companies, demonstrating strong sustainability. ANTA has many classic cases worthy of industry recognition in its development history, such as turning crisis into opportunity to become the leading local brand, solidifying multi-brand operational capability starting from the acquisition of FILA, transitioning to DTC to build strong retail capabilities, and successfully acquiring and transforming Amer Sports, launching global development efforts. Behind these achievements is ANTA's strong corporate capabilities developed during its growth, particularly in strategic vision and management coordination. The group has a positive corporate values, with courage, adaptability, and constant iteration of development strategies, consolidating the core competitiveness of "brand + retail". With clear goals, accountability among employees, efficient coordination, customer-first approach, innovative product development philosophy, digital empowerment, emphasis on talent development, and team building. Looking ahead, with dual drivers internally and externally, ANTA is poised to enter a new period of stronger growth. The company continuously innovates in its operations and overseas expansion mode, solidifying a pattern of high-quality development. The bank believes the company is likely to dominate prime commercial districts with its top stores in the domestic market, providing room for increased profitability; and continuously strengthen store layouts in overseas markets, improve global operational efficiency, and consolidate resources, with broad room for growth.