Lyon: Reiterates "outperform" rating on ANTA SPORTS (02020) with a target price of HK$108

Lyon released a research report stating that it has reiterated its "outperform the market" rating for ANTA SPORTS (02020), with a target price of HK$108. The firm expects the company's sales and recurring net profit in the second half of 2024 to increase by 10% and 5% respectively compared to the previous year, and to grow by 12% and 16% in the 2024 fiscal year. The firm predicts that the sales of ANTA, Fila, and other brands in the 2024 fiscal year will increase by 10%, 6%, and 41% respectively. In terms of profit, it is expected that the operating profit margins for ANTA, Fila, and other brands in the 2024 fiscal year will be approximately 21%, 25%, and 27%, in line with expectations. The firm expects that ANTA's stock price will be supported by the continued improvement in retail sales in the fourth quarter of 2024, better than expected performance from Fila and other brands, and in line performance from the ANTA brand. For 2024, the firm predicts that sales and recurring net profit will increase by 12% and 16% respectively compared to the previous year, and that profit margins for each segment will reach targets. For 2025 and the medium term, it is expected that the group's market share will continue to grow (with sales increasing by 11% in 2025, higher than the industry's mid-single digit growth) and core operating profit margins expanding (with a 40 basis point increase in 2025). This is due to the expansion of ANTA and outdoor brand products and diversification of channels.