ANTA SPORTS(02020) 华泰证券·2025-03-20 11:10Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 117.98 [7][8]. Core Views - The company achieved a revenue of RMB 70.83 billion in 2024, representing a year-on-year growth of 13.6%, and a net profit of RMB 15.60 billion, which is a 52.4% increase year-on-year. Excluding one-time gains from AS listing and placement, the profit was RMB 11.93 billion, up 16.5% year-on-year, slightly above Bloomberg consensus expectations [1]. - The company's market share in the Chinese sports footwear and apparel market increased to 23% in 2024, maintaining its leading position in the industry. The main brands continue to perform well, and the outdoor brand has sustained high growth [1][2]. - The company has initiated a share buyback program, repurchasing a total of HKD 1.97 billion worth of shares since August 2024 [1]. Summary by Sections Revenue and Profitability - In 2024, the main brand revenue increased by 10.6% to RMB 33.52 billion, while FILA's revenue grew by 6.1% to RMB 26.63 billion. Other brands saw a significant increase of 53.7% to RMB 10.68 billion. Online revenue rose by 21.8%, accounting for 35.1% of total revenue [2]. - The gross profit margin decreased by 0.4 percentage points to 62.2%, attributed to a higher proportion of lower-margin footwear products and e-commerce business [3]. Expenses and Operational Efficiency - Advertising expenses increased by 0.8 percentage points to 9.0%, driven by increased spending on advertising, sponsorships, and store upgrades. R&D expenses rose by 0.2 percentage points to 2.8% as the company continues to invest in innovation [3]. - The company maintained a healthy inventory turnover of 123 days, with a cash flow generation capacity of RMB 13.2 billion [3]. Profit Forecast and Valuation - The net profit estimates for 2025 and 2026 have been adjusted downwards by 3.4% and 3.8% to RMB 13.36 billion and RMB 15.01 billion, respectively. A new estimate for 2027 net profit is set at RMB 16.79 billion [4]. - The target price is based on a PE ratio of 23x for 2025, reflecting the company's significant market share and multi-brand operational capabilities [4].