BOCI Research: Anticipate that Puma will bring significant profits to ANTA SPORTS (02020), but it may take longer than expected. There may be more mergers and acquisitions in the future.

China International Bank released a research report stating that ANTA SPORTS (02020) announced the acquisition of 29.06% stake in German sports brand Puma for 1.5 billion euros. Although the market had anticipated this transaction, the bank believes that the actual consideration paid is better than market expectations. However, investors may still hold a cautious attitude towards the transaction itself and its structure. Overall, the bank expects this transaction to have limited impact on its adjusted profit forecasts for 2026 and 2027, and will not change the bank's "buy" rating on ANTA; the target price is now set at 95.4 Hong Kong dollars. The bank predicts that Puma's turnaround path will be different from Amer Sports or Fila, meaning that it may take longer for Puma to bring significant profit contribution to ANTA. At the same time, the bank believes that ANTA's global expansion plan may not stop at this transaction, and there will be more merger and acquisition activities in the future.