Walter Woo, an analyst from CMB International Securities, maintained the Buy rating on ANTA Sports Products (ANPDF – Research Report). The associated price target is HK$109.99.
Walter Woo’s Buy rating on ANTA Sports Products (ANPDF) is based on a number of factors. The company’s performance in 3Q23 was a bit soft, but its retail sales have been showing an improving trend since July-August, and particularly in September and during the 10-1 holidays. There are expectations of a turnaround since the company’s valuation of 23x FY23E P/E is considered too demanding given the better retail sales trend and already low investor expectations.
Further, ANTA’s FY23E guidance was maintained with a stable operating profit margin expected. The retail sales growth of ANTA’s brand is expected to improve in 4Q23E, with a retail sales growth target of HSD to 10%+ seen as achievable. FILA, a part of ANTA, also had a better than expected 3Q23 result, beating the CMBI estimate with low-teens retail sales growth. FILA is also expected to achieve its FY24E target of 10%+ retail sales growth. Overall, these factors influenced Walter Woo’s decision to rate ANTA Sports Products as a Buy.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a HK$111.00 price target.
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ANTA Sports Products (ANPDF) Company Description:
ANTA Sports Products Ltd. engages in manufacturing, trading, and distribution of sporting goods. It offers footwear, apparel, and accessories. Its brands include ANTA Kids, FILA, FILA Kids, Descente, and NBA. The company was founded on February 8, 2007 and is headquartered in Quanzhou, China.
