ANTA SPORTS(02020) 东吴证券·2024-07-10 04:01Investment Rating - The report maintains a "Buy" rating for Anta Sports (02020.HK) [1] Core Views - Anta Sports demonstrated high-quality growth across its multi-brand matrix in Q2 2024, with retail sales for the Anta brand, FILA, and other brands showing significant year-on-year increases [1] - The company is expected to achieve its revenue growth targets of 10-15% for both the Anta brand and FILA for the full year, supported by ongoing brand optimization and marketing efforts related to the Olympics [1] Summary by Sections Revenue and Profit Forecast - Total revenue is projected to grow from 62,661 million RMB in 2023 to 70,422 million RMB in 2024, reflecting a year-on-year increase of 12.39% [1] - Net profit attributable to shareholders is expected to rise from 10,236 million RMB in 2023 to 13,293 million RMB in 2024, marking a growth of 29.86% [1] - The latest diluted EPS is forecasted to increase from 3.61 RMB in 2023 to 4.69 RMB in 2024 [1] Retail Performance - In Q2 2024, retail sales for the Anta brand grew at a high single-digit rate, while FILA and other brands saw mid-single-digit and 40-45% growth, respectively [1] - The Anta brand's performance improved in a challenging consumer environment, with significant online growth of 20-25% [1] - FILA's performance was impacted by a high base, with mid-single-digit growth in Q2 2024, while other brands like Descente and Kolon showed strong growth of 35-40% and 60%, respectively [1] Brand Strategy - Anta continues to implement a mass-market positioning and brand elevation strategy, introducing new store formats and products to meet diverse market demands [1] - The introduction of the Super Anta store and Anta Champion store has been well-received, enhancing brand influence and market response [1] Financial Health - The company maintains a healthy inventory turnover ratio, with discounts remaining stable year-on-year and improving quarter-on-quarter [1] - The overall inventory levels are healthy, and the company expects to continue benefiting from economies of scale and reduced rental costs [1] Valuation - The report adjusts the net profit forecasts for 2024-2025 upwards, reflecting the contribution from Amer Sports' US listing, with corresponding P/E ratios of 14, 13, and 12 for 2024-2026 [1] - The current valuation is considered to be at a historically low level, supporting the "Buy" rating [1]