ANTA SPORTS(02020) 东兴证券·2024-04-26 02:02Investment Rating - The report maintains a "Strongly Recommend" rating for Anta Sports, reflecting confidence in its growth trajectory and market position [1][5] Core Views - Anta Sports achieved robust growth in 2023, with revenue reaching RMB 62.356 billion, a 16.2% YoY increase, and net profit attributable to the parent company (excluding joint venture losses) rising 44.9% to RMB 10.954 billion [1] - The company's multi-brand strategy continues to drive growth, with Anta, FILA, and other brands (DESCENTE and KOLON) contributing significantly to revenue and market expansion [1] - Anta Sports' 2024 Q1 performance showed steady growth, with Anta brand retail sales increasing by mid-single digits and FILA by high-single digits, while other brands grew 25-30% [1] Financial Performance - In 2023, Anta Sports' gross margin improved to 62.6%, up 2.4 percentage points, driven by DTC (Direct-to-Consumer) initiatives and improved retail discounts for FILA [1] - Operating profit margin rose to 24.6%, a 3.7 percentage point increase, reflecting strong cost control and operational leverage [1] - The company's joint ventures showed significant improvement, with EBITDA reaching RMB 3.745 billion, a 45.4% YoY increase, and expected gains of RMB 1.6 billion in 2024 due to the joint venture's listing [1] Multi-Brand Strategy - Anta brand revenue grew 9.3% YoY to RMB 30.306 billion, while FILA revenue increased 16.6% to RMB 25.103 billion, with notable growth in footwear and children's wear [1] - DESCENTE and KOLON achieved a 57.7% revenue growth, reaching RMB 6.947 billion, highlighting their role as new growth engines [1] - The company plans to maintain double-digit growth for Anta, achieve RMB 40-50 billion in FILA sales, and develop DESCENTE and KOLON into the third RMB 10 billion brand by 2026 [1] Market Position and Expansion - Anta Sports aims to become the market leader in China by 2025 and a global leader by 2030, leveraging its multi-brand strategy and market segmentation [1] - The company expanded its retail network, with Anta adult stores increasing to 7,053 (net addition of 129) and Anta Kids stores to 2,778 (net addition of 99) by the end of 2023 [1] Valuation and Forecast - The report forecasts Anta Sports' net profit for 2023-2025 to be RMB 12.85 billion, RMB 13.373 billion, and RMB 15.152 billion, respectively, with a current PE ratio of 19.7x, 18.9x, and 16.7x [5] - The company's EPS is expected to grow from RMB 2.68 in 2023 to RMB 5.35 in 2026, reflecting strong earnings potential [7]