CLSA: ANTA SPORTS (02020) Is One of Its Top Picks, Maintains "Outperform" Rating and Target Price of HK$110

CLSA issued a research report maintaining its "Outperform" rating on ANTA SPORTS (02020) with a target price of HK$110, and listed it as one of its top picks. The bank believes the company has a global footprint, coupled with disciplined execution capabilities and a solid balance sheet. The bank expects ANTA to benefit from improved store productivity, outperformance of its outdoor brands, a potential turnaround to profitability for Jack Wolfskin's China market business next year, and higher net profit from Amer Sports. It forecasts a compound annual growth rate of 7% and 12% for sales and adjusted net profit, respectively, for the 2026 to 2028 fiscal years. The bank noted that its 29% stake in PUMA and Jack Wolfskin can broaden ANTA's addressable market in professional sports and mass outdoor. Productivity improvements, store format upgrades, and online growth are expected to offset store optimization. Demand in the third quarter of this year slowed compared with the first half; after extreme weather impacts in July, sales improved in August and September, with Golden Week and Double 11 set to be key to the company achieving its FY2026 guidance. In addition, destocking by international peers has intensified online discounts, but ANTA strictly controls discounts and expects the market competition environment to return to rationality in 2027.