The Zhitong Finance App learned that Anxin International released a research report stating that it maintains the “buy” rating of Anta Sports (02020) and comprehensively considers that the 2024-2026 EPS is 4.26/4.88/5.46 yuan, giving 2024 26 times PE, with a target price of HK$120. As a leading enterprise in China's sporting goods industry, the company will give priority to enjoying the dividends brought by the development of the industry.

The report's main points are as follows:

Anta's main brand:

In the context of a high base, 24Q1 still achieved medium unit growth over the same period last year, which is in line with the company's expectations. The target completion rate for the first two months of the year was 100%. In the second half of March, the expected target was exceeded, and the target completion rate reached 120%. Inventory was maintained well, the inventory sales ratio was less than 5, improving month-on-month. The overall discount remained within the target range of 75-80%, and online channel discounts were optimized. In terms of new products, the Owen Generation sneakers launched in early March were sold in 14 countries around the world, including the US, the Middle East, Singapore, etc., causing a rush to buy. In addition, the company opened a high-end experience store in Sanlitun to enhance its brand image.

FILA:

24Q1 recorded a high year-on-year increase in the number of units, which was in line with the company's expectations. Among them, Core's growth was better than that of Kids and Fusion, mainly due to product portfolio optimization and store layout improvements, while Fusion and Kids stores were affected by the closure of some stores during the adjustments. Online sales continued to grow by around 25% from a higher base. The inventory sales ratio fell further below 5, and there was an improvement from month to month. At the same time, both online and offline retail discounts have improved, with an online reduction of 3pp and an offline reduction of 1pp, reflecting high-quality growth.

Other brands:

Benefiting from the continued explosion in demand for outdoor sports, other 24Q1 brands continued their previous growth trend and recorded 25-30% turnover growth. Among them, Kolon grew by more than 50%, and both Descente and Kolon had strong double-digit growth. Inventory conditions have reached optimal levels in recent quarters.

Under high quality operations, we remain confident in our annual growth targets

The company's many brands all showed a high level of operation in 24Q1. The flow rate grew steadily, inventory remained healthy, and discounts continued to narrow. Although there is a slight gap between Q1 performance and full-year expectations, it is believed that with the continued recovery of the consumer environment and the arrival of the Paris Olympics, brands will continue to gain strength in the next few quarters, and I believe the company can achieve its annual growth goals.