King Golden Financial News | Founder Securities issued a research report, indicating that Anta Sports (02020) 3Q24 Anta brand revenue increased by m units year-on-year, with significant monthly fluctuations. In terms of business, Anta's large goods and children's products are growing in m units, and the e-commerce channel continues the trend of the first half of the year, growing by 20%+. In terms of city-level performance, Anta's core brand performance is relatively good; street stores and sinking channels are under pressure. The offline discount rate of Anta remains stable, while the online discount rate has improved; inventory turnover days are controlled within 5 months, maintaining a healthy level of dynamic management.

The bank continues to point out that both Anta and Fila brands performed better than expected during the Golden Week, with all indicators of the Anta brand performing well and Fila seeing improved foot traffic. Given the strong performance during the Golden Week, coupled with the previously implemented government monetary policies, management is confident in the performance of Singles' Day sales, focusing on both revenue and profit without excessive deep discounts. For the full-year guidance, due to the slightly lower performance in Q3 than expected, achieving the full-year revenue target poses some pressure. However, if Q4 and Singles' Day perform better than expected, there is a chance to achieve the prior revenue target. With continuous dynamic management, management is confident in achieving the profit margin target.

The bank stated that the company's performance in Q3 was slightly below expectations due to the overall consumer environment impact, but all indicators remained positive. There was a certain shift in trends during the National Day, but performance during key promotion periods such as Singles' Day still needs to be observed. In the medium to long term, the company has outstanding multi-brand operation capabilities, a differentiated brand matrix layout, clear development path, and sustainable growth prospects. The bank expects the company's net income attributable to shareholders for 24-25 to be 13.7, 14 billion yuan, with the current valuation at 19x. In the upswing cycle, sports are the preferred brand category, with Anta Sports as a stable leader in the sports sector, maintaining a "strong buy" rating.