GF SEC: Maintains a "buy" rating on ANTA SPORTS (02020) with a fair value of HKD 108.03 per share.

GF SEC released a research report, stating that they predict ANTA SPORTS (02020) EPS for the years 2026-2028 to be 5.28/6.05/7.01 Hong Kong dollars per share. Considering comparable companies, and the fact that the company is a leader in the industry with strong competitiveness, they give the company a P/E ratio of 18 for the year 2026, corresponding to a fair value of 108.03 Hong Kong dollars per share, maintaining a "buy" rating. GF SEC's main points are as follows: Company announces 2025 annual performance In 2025, the company's revenue was 80.219 billion yuan, a year-on-year increase of 13.3%. Excluding the gains from the listing of YAMAFIN and the dilution of equity from the YAMAFIN placement in 2024, the net profit attributable to the parent company was 13.588 billion yuan, a year-on-year increase of 13.9%. The company proposes to distribute HK$1.08 per share, plus HK$1.37 for the first half of the year, a total of HK$2.45 per share for the full year of 2025, with a dividend yield of 3.04% at the closing price on April 2. Steady growth in revenue for ANTA, FILA, and high growth for all other brands In 2025, ANTA's revenue was 34.754 billion yuan, a year-on-year increase of 3.7%, FILA's revenue was 28.469 billion yuan, a year-on-year increase of 6.9%, and all other brands' revenue was 16.996 billion yuan, a year-on-year increase of 59.2%. In terms of operating profit margins, ANTA was at 20.7%, FILA at 26.1%, with an increase of 0.8 percentage points, and all other brands at 27.9%, with a decrease of 0.7 percentage points. In terms of distribution channels, ANTA had 7,203 large stores, 2,652 children's stores, FILA had 1,273 large stores (+9), 578 children's stores, 189 trend stores, 256 DISANT stores, 209 COOLIN stores, and 52 MAIA stores. Company profit analysis In 2025, the company's gross profit margin was 62.0%, with ANTA's gross profit margin at 53.6%, mainly due to increased investment in professional product costs and the proportion of e-commerce business, and FILA's gross profit margin at 66.4%, mainly due to the increase in product features and quality as well as rising costs and the proportion of e-commerce business. The company's operating expense ratio was 26%, mainly due to the high proportion of advertising investment in 2024 as it was a big year for sports. Risks: Regulatory approval risks; risks of ANTA and other brands, as well as Amer's overseas business, falling below expectations.