Jinwu Financial News | According to Tianfeng Securities Research Report, Anta Sports (02020) revealed 24Q1 retail performance. The retail sales volume of the Anta brand (online+offline, same below) increased year-on-year, the Fila brand had a high year-on-year increase in orders, and all other brands increased 25-30% year over year. Recently, Anta and Toray China Fabric Innovation Center (TSD, PTHL) have cooperated on joint in-depth research and development. In recent years, many of the world's top partners have joined Anta's global open innovation ecosystem platform. Focusing on the research and development of new materials for sports footwear, fabric technology development, and intelligent manufacturing technology, they have achieved joint innovation results represented by “Anta Film”, a high-performance waterproof and breathable material, and “soft yarn” introducing Academician Xu Weilin's scientific research results “embedded in spinning” technology, redefining industry standards and consumer experience, and completing market transformation.
Anta strives to create a differentiated channel matrix, divide stores into levels, and match different store types and product matrices to meet the needs of different regions and diverse consumers. As of December 31, 2023, under the DTC model, out of a total of about 5,400 Anta stores, about 44% are directly managed by Anta, and the remaining 56% are operated by franchisees in accordance with the company's operating standards; out of a total of about 2,200 Anta children's stores, about 64% are directly managed by Anta; in the future, channel optimization and upgrading will be used to match different business districts using differentiated store images to double focus on improving DTC store efficiency, product efficiency and profitability.
The bank refers to the “Group's multiple brands” strategy, which targets customers at different levels, continuously enriches product choices and promotes store channel differentiation to meet a wide range of customer needs, and aims to expand the Group's overall market share. The Group's three major brand groups include a professional sports brand group with Anta as the main focus, a fashion sports brand group with FILA as the main body, and an outdoor sports brand group composed of DESCENTE and KOLONSPORT. The bank expects revenue for 2024-26 to be 708/795/87.8 billion yuan, with net profit to mother of 132/135/15.6 billion yuan, EPS of 4.7/4.8/5.5 yuan/share, respectively, and corresponding PE of 17/16/14x, respectively. The bank maintains profit forecasts and maintains a “buy” rating.