Jinwu Financial News | According to Haitong Securities Research, Anta Sports (02020) had revenue of 62.36 billion yuan (+16.2%) and net profit of 10.24 billion yuan (+34.9%). If excluding joint ventures, the profit and loss impact of excluding joint ventures was 10.95 billion yuan (+44.9%), shareholders' profit ratio (excluding joint ventures) was 17.6% (+3.5pct), and profitability returned to the 19-year level. The operating profit margin was 24.6% (+3.7pct), mainly due to increased operating leverage driven by revenue growth; the share of DTC and direct retail sales increased; and the Group's continued strict cost control.
According to the bank, Anta/FILA/other brands revenue YoY: +9.3%/+16.6%/+57.7%, gross margin YoY: +1.3/+2.6/+1.1pct, operating margin YoY: +0.8/+7.6/+6.5pct. The Anta brand transitioned to DTC, and DTC revenue increased by 24.2%, and DTC revenue share increased to 56.1% (+6.7pct), leading to an increase in gross margin; FILA retail discounts improved.
The bank believes that as a leading multi-brand sporting goods group, Anta's competitive barriers are mainly due to ① scarce high-quality multi-brand assets, occupying multiple tracks with high growth potential, and ② a mature and strong operating system to build resilience to economic cycles. The bank continues to be optimistic about the growth potential of many brands. The bank expects the company's 2024/2025 net profit of $133.82/13.548 billion, giving the 2024 PE valuation range 20-23X, corresponding to a reasonable value range of HK$102.70-118.11 per share according to the exchange rate of HK$1 = 0.92 yuan, maintaining a “superior to the market” rating.