Citi: Nike China channel inventory buyback expected to ease "Double 11" price war concerns; bullish on ANTA SPORTS (02020) and LI NING (02331)

Citi issued a research report stating that Nike recently held its fiscal 2027 first-quarter earnings conference call, at which it was expected to buy back a large amount of China channel inventory over the next three quarters, with China market sales expected to see an expanded year-on-year decline from September this year to May next year, compared with a 26% decline from July to August this year; it also announced the merger of its Greater China and Asia-Pacific businesses into a new operating region, APGC, indicating a strategy of downplaying its China market operating structure, which may help ease investor concerns that Nike will drive the industry to launch a major price war during "Double 11." Citi expects ANTA SPORTS (02020) and LI NING (02331) to gain share from Nike, and holds a positive view on ANTA's possible integration of Puma's China retail and distribution business in 2027, maintaining a "Buy" rating on both ANTA and LI NING, with a preference for ANTA.