JP Morgan: ANTA SPORTS (02020) acquires Puma shares to move towards globalization. Target price is 141 Hong Kong dollars.

J.P. Morgan released a research report stating that ANTA SPORTS (02020) acquiring a 29% stake in Puma is a key strategic step in achieving the vision of becoming a global multi-brand sportswear group. The bank maintains a buy rating on ANTA with a target price of 141 Hong Kong dollars. ANTA acquired the stake in Puma for 1.5 billion euros (approximately 12.3 billion RMB), and the bank believes that the price is reasonable considering Puma's brand history, strength in professional sports such as football and running, and its international market presence in Europe, Latin America, and other regions. The report emphasizes that the acquisition will be funded entirely by ANTA's internal resources, as the company had a net cash balance of 31.5 billion RMB as of the first half of 2025, which is sufficient to cover the transaction and maintain dividend policies with room to spare, alleviating concerns about financing pressure from the market. J.P. Morgan estimates that the transaction will have a low single-digit percentage impact on ANTA's net profit in 2026. The bank reminds short-term investors to pay attention to two factors: first, the impact of Puma's profitability on ANTA's financial statements; and second, the time required for the revitalization of the brand. The transaction is still pending approval from antitrust authorities in multiple countries and the National Development and Reform Commission of China, with an estimated timeline of 6 to 10 months.