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CLSA: Anta Sports is a top pick, maintains target price of HK$110
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CLSA (里昂) has released a research report maintaining an 'Outperform' rating on Anta Sports (02020.HK) with a target price of HK$110, naming the stock as one of its top picks. The brokerage cites Anta's global布局, strong execution capabilities, and robust balance sheet as key reasons for its positive outlook. CLSA forecasts that Anta will benefit from improved store productivity, outperformance of its outdoor brands, a potential turnaround of Jack Wolfskin's China business next year, and higher net profit from Amer Sports. The firm estimates Anta's revenue and adjusted net profit compound annual growth rates (CAGR) will be 7% and 12% respectively for fiscal years 2026 to 2028. CLSA notes that Anta's 29% stake in PUMA and ownership of Jack Wolfskin expand its addressable market in professional sports and mass outdoor segments. While third-quarter demand slowed compared to the first half, with July affected by extreme weather, sales improved in August and September. The Golden Week holiday and Singles' Day (Double 11) are seen as critical for Anta to meet its fiscal 2026 guidance. The report also notes that while international peers are increasing online discounts to clear inventory, Anta is strictly controlling its own discounts, and CLSA expects the competitive environment 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 Anta benefits from a globalized footprint, strong execution capabilities, and a solid balance sheet.
Key Growth Drivers
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.
While demand in the third quarter of this year slowed compared to the first half, sales improved in August and September after being affected by extreme weather in July. CLSA highlights that Golden Week and Singles' Day (Double 11) will be critical for Anta to meet its fiscal 2026 performance guidance.
Competitive Landscape and Discount Strategy
Although international peers have intensified online discounting amid inventory clearance, Anta has maintained strict control over discounts. CLSA expects the competitive environment to return to rational levels by 2027.
Source
智通财经Regional
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