Anta Sports (02020) developed PG7 based on popular demand. Breakthrough pricing brings high-end cushioning technology to the purchasing range of ordinary runners.
The Zhitong Finance App learned that Tianfeng Securities released a research report saying that Anta Sports (02020) developed PG7 based on popular demand, and that breakthrough pricing brought high-end cushioning technology into the purchasing range of ordinary runners. Revenue for 2024-26 is expected to be RMB 70.8 billion, RMB 79.5 billion, and RMB 87.8 billion respectively; net profit to mother is RMB 13.2 billion, RMB 13.5 billion, RMB 15.6 billion, EPS is RMB 4.7 per share, RMB 4.8 per share, RMB 5.5 per share, and corresponding PE is 17/17/14x, respectively, maintaining a “buy” rating.
Anta launches PG7 jogging cushioning technology platform
Anta (China) held the Anta PG7 (New Product) Technology Conference and PG7 Technology Roundtable in Xiamen on June 6 to officially launch PG7, a jogging cushioning technology platform specially built for the public. The cushioning performance broke the industry ceiling. Among them, the shock absorption G value reached 7.8; Haina yarn softness increased by 20%.
Breakthrough pricing, developed based on popular demand
Anta has released a total of two jogging shoes based on PG7 midsole technology: Anta Traveler and Anta Traveler. The prices are 399 yuan and 299 yuan respectively, and officially went on sale on June 7. The launch price of cushioned running shoes from international brands in the past two years has exceeded 1,000 yuan. For example, ASICS Nimbus26 is 1,290 yuan; AdidasUltraBoostlight is 1,399 yuan; and Nike Nike Invincible3 is 1,399 yuan. We believe that Anta's current pricing is extremely advantageous, which means that top cushioned running shoes have officially entered the three-letter era.
Most cushioned running shoes on the market are designed from the top down, and high-end products designed for elite runners are reduced and provided to the public. Anta PG7 disrupts the cushioning industry in terms of product logic. It is not a reduction in the distribution of high-end products, but is based on technological research and development based on the actual needs of ordinary runners.
Top cutting-edge technology, fully optimized configuration
The PG7 series uses a fusion thermoplastic elastomer jointly developed by Anta and Sinopec Shoe Materials Innovation Laboratory to create a new era of cushioning; among them: 1) Shoe insole: After 5 years of data collection, Anta found three arcs that fit Chinese foot shapes to create Haina wide; 2) Upper: Anta uses DuPont's Sorona fiber, which is far more flexible than ordinary polyester yarn, bringing a full range of foot comfort experiences; 3) Insole: Verified by AI simulation analysis and verification from the Shanghai University of Science and Technology, the foot arch version was higher. Peak pressure to the final version Peak pressure is released on the bends and ends, further improving comfort; 4) Midsole: Designed and iterated by AI to naturally guide the bending of the plantar joint during running, with a groove in the middle.
Anta focuses on the field of popular professional sports. Focusing on the “popular positioning, professional breakthrough, and brand improvement” strategy, Anta is committed to providing functional and cost-effective sports products to Chinese consumers in terms of brand resource layout and IP product creation.
The company has strong R&D capabilities and is committed to improving product performance, consolidating professional image, and strengthening competitiveness. The professional running shoe matrix has been strengthened, and more products with different price systems and diversified products have been developed around the core series, covering the needs of different scenarios such as racing competitions, racing training, cushioning protection, and off-road outdoor activities.
Maintain profit forecasts and maintain “buy” ratings
Anta developed the PG7 based on popular demand, and breakthrough pricing brought high-end cushioning technology into the purchasing range of ordinary runners. We expect revenue for 2024-26 to be RMB 70.8 billion, RMB 79.5 billion, RMB 87.8 billion, and net profit to mother of RMB 13.2 billion, RMB 13.5 billion, RMB 15.6 billion, and EPS of RMB 4.7 per share, RMB 4.8 per share, RMB 5.5 per share, and corresponding PE is 17/17/14x, respectively.