HK Stock Market Move | ANTA SPORTS (02020) rises over 3% as PUMA's Greater China sell-through begins to recover; Nomura maintains the company as its top pick in China's sportswear sector.

ANTA SPORTS (02020) rose over 3%, up 2.32% as of press time to HK$79.3, with turnover of HK$549 million. On the news front, Nomura released a research report maintaining ANTA SPORTS as its top pick in China's sportswear sector, stating that ANTA has completed the acquisition of PUMA shares, becoming its largest shareholder and long-term strategic partner, and maintaining a "Buy" rating on ANTA with a target price of HK$91.4. The bank believes ANTA SPORTS will benefit from long-term structural growth opportunities, its multi-brand strategy, and attractive valuation levels. Nomura noted that PUMA's third-quarter revenue fell 6.3% year-on-year at constant currency to EUR1.78 billion, slightly above market expectations of EUR1.76 billion; gross margin rose 4.2 percentage points year-on-year to 49.5%, beating market expectations of 48.5%, mainly driven by lower sourcing costs, tariff refunds, and improved channel mix. During the period, sales declines continued in core markets of Europe, the Middle East and Africa, and the Americas, but sales in the Greater China market began to recover, with revenue up 3.5% year-on-year, accelerating from 0.9% growth in the second quarter, mainly driven by double-digit year-on-year growth in the direct-to-consumer (DTC) business.