Zhongtai: Maintaining a "buy" rating for ANTA SPORTS (02020) as its global expansion is steadily progressing.

Zhongtai released a research report stating that ANTA SPORTS (02020), as a leader in domestic sportswear, has achieved significant results with its multi-brand strategy and successfully seized the opportunity in the outdoor sports sector. The main brand has maintained steady growth through channel and product innovation, FILA is expected to stabilize after adjustments, and the newly acquired Lining brand further enhances the outdoor brand matrix, with a steady progress in global layout. The bank expects the company to achieve a net profit attributable to shareholders of 13.2/14.8/16.6 billion yuan in 2025-2027, and maintains a "buy" rating. Zhongtai's main points are as follows: ANTA SPORTS released its performance for 25Q3 In 25Q3, both ANTA and FILA brand revenue achieved low single-digit positive growth, while the revenue of all other brands increased by 45-50% year-on-year. ANTA brand: Adjustments in e-commerce channels and weather impact, achieving low single-digit positive growth year-on-year ANTA brand revenue in 25Q3 achieved low single-digit positive growth year-on-year. The bank estimates that the main brand's offline/online businesses achieved low single/high double-digit growth respectively, with an inventory-to-sales ratio slightly higher than 5 months, still in the healthy range. The bank estimates that with the optimization of the TikTok live streaming strategy and product adjustments, e-commerce performance is expected to improve. FILA: Performance in line with expectations, inventory slightly high due to Double Eleven stocking FILA brand revenue achieved low single-digit positive growth year-on-year in 25Q3, with e-commerce performance estimated to be better than offline. In terms of operations, the bank estimates that the inventory-to-sales ratio has increased to 6 months due to the Golden Week and Double Eleven stocking nodes. If the Q4 e-commerce promotions are successfully completed, it is expected to fall back to 5-6 months by the end of the year. In September this year, FILA officially launched its tennis strategy, renewing its sponsorship of the China Open and upgrading to become the exclusive official sponsor of sports shoes and clothing, with expectations that the category performance will outperform the overall performance. Other brands: Continuing high growth momentum, becoming an important engine for the group's growth Revenue for other brands increased by 45-50% year-on-year in 35Q3, with the bank estimating growth of over 30% for Descente, over 70% for Kolon, and around 45% for MaiaActive. Each brand has continuously strengthened its differentiated brand image and upgraded the retail experience, with new store openings performing very well, and expected to maintain high growth momentum in the outdoor peak season of Q4.