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CLSA Keeps 'Outperform' on Anta Sports, Names It a Top Pick
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CLSA (via Zhitong Finance) released a research report maintaining an 'outperform' rating on Anta Sports (02020) with a target price of HKD 110, naming it a top pick. The firm cites Anta's global布局, strong execution, and solid balance sheet. CLSA forecasts a 7% revenue CAGR and 12% adjusted net profit CAGR for fiscal years 2026-2028, driven by improved store productivity, outperformance of outdoor brands, a potential turnaround of Jack Wolfskin's China business next year, and higher net profit from Amer Sports. The report notes that holdings in PUMA (29% equity) and Jack Wolfskin expand Anta's addressable market in professional sports and mass outdoor segments. While Q3 demand slowed versus H1 due to extreme weather in July, sales improved in August and September. Golden Week and Singles' Day are seen as key to meeting the FY2026 guidance. CLSA adds that Anta is strictly controlling discounts despite increased online discounting from international peers, and expects market competition to normalize by 2027.
Source report
CLSA has released a research report maintaining an "Outperform" rating on Anta Sports (02020.HK) , with a target price of HK$110, and has named the company as one of its top picks.
The brokerage believes that Anta benefits from its global footprint, strong execution capabilities, and a solid balance sheet.
Key Growth Drivers and Financial Forecasts
CLSA projects that Anta will achieve a compound annual growth rate (CAGR) of 7% in sales and 12% in adjusted net profit for fiscal years 2026 to 2028, driven by:
- Improved store productivity
- Outdoor brands outperforming the market
- Jack Wolfskin's China business potentially turning profitable next year
- Higher net profit from Amer Sports
Strategic Advantages and Market Outlook
The report notes that Anta's 29% stake in PUMA and ownership of Jack Wolfskin expand its addressable market in both professional sports and mass outdoor segments.
Productivity gains, store format upgrades, and online growth are expected to offset the impact of store optimization.
Recent Performance Trends
- Third-quarter demand slowed compared to the first half of the year
- After being affected by extreme weather in July, sales improved in August and September
- The Golden Week holiday and Singles' Day (Double 11) will be critical for Anta to meet its FY2026 performance guidance
Competitive Landscape and Discount Strategy
While international peers have intensified online discounting amid inventory clearance, Anta has maintained strict control over discounts. CLSA expects the competitive environment to return to rationality by 2027.
Source
智通财经Regional