The Zhitong Finance App learned that Yamato released a research report stating that it reaffirmed the “buy” rating of Anta Sports (02020). It is unrivaled in implementing a multi-brand strategy, helping to withstand short-term challenges and provide sustainable long-term growth. The target price was raised from HK$110 to HK$120.

According to the report, considering the company's overseas expansion strategy, its earnings estimates per share from 2025 to 2026 were slightly reduced by 1% each to reflect more conservative profit margin forecasts. Management said that the sales momentum from April to now has generally remained strong in the first quarter and is moving towards management goals, and online sales continue to outperform offline sales. Compared to Tier 1 and 2 cities, lower tier cities had a better retail elimination rate during May 1st Golden Week. Management is preparing to launch targeted marketing for the Paris Olympics in June. The related promotion expenses will be lower than in 2022, but advertising and marketing expenses are expected to be distributed more evenly this year.

Management said they have noticed that the performance of major international brands in the Chinese market has been divided since this year, generally maintaining last year's momentum, while rapidly growing emerging brands have not put actual pressure on Anta. The bank notes that Anta will benefit from future channel inventory improvements and discounts from peers. Management said that currently only about 200 stores have been opened in Southeast Asia (such as the Philippines, Malaysia and Vietnam), the revenue and profit contributions are still not obvious, and management is still aiming for total retail revenue of Anta and other brands to reach 1.5 billion US dollars in overseas markets. Also keep an eye out for expansion opportunities in the Middle East and Africa, as well as mature markets such as Europe and the US.