Jianyin International reported that anta sports (02020.HK) plans to issue a 1.5 billion euro zero-coupon guaranteed convertible bonds due in 2029, with an initial conversion price of 104.0 yuan per share. The bank expects the group's net cash to exceed 30 billion yuan by the end of this year, allowing the group to maintain a 50% annual dividend payout ratio and prepare ample capital reserves for potential mergers and acquisitions.

Jianyin International mentioned that anta's sales performance during the National Day and november 11 shopping festival-related activities was ideal, thus expecting sales in the fourth quarter to grow quarter-on-quarter, with ANTA, FILA, and other brands projected to grow in the high single digits, remain flat, and approximately 40%, respectively. In the context of a global slowdown in consumer spending, international brands are intensifying their marketing budgets to maintain market share, thereby heating up competition in the fourth quarter. The bank believes that the group possesses strong execution capabilities and good cost control, along with the positive contribution from Amer Sports, which will lessen the impact of competition on the group's profit margins.

The bank has reduced its net profit forecasts for anta sports for the fiscal years 2024 and 2025 by 5% and 2%, respectively, to reflect a more conservative profit margin forecast for FILA this year combined with a higher effective tax rate, lowering the target price from 106 yuan to 105 yuan, while maintaining an 'outperform the market' rating.