20240111-农银国际证券-安踏体育-02020.HK-Growth_outlook_to_face_uncertainty_6页_336kb

ANTA Sports Products Limited (2020 HK) is rated "BUY" with a target price of HK$93.4 as of January 11, 2024. The growth outlook faces uncertainty, but the company demonstrated strong performance in 2023, with ANTA brand, FILA brand, and other brands recording high double-digit YoY revenue growth, driven by robust retail sales. For instance, FY23 saw revenue growth of 27.9% for ANTA and 16.3% for FILA. The acquisition of Amer Sports, expected to strengthen financials through its IPO since 2021 (aimed at repaying debt and reducing costs), could contribute positively, despite global athletic apparel market CAGRs of around 6.4% projected. Financial analysis shows steady growth in revenue and net profit up to 2025E, with attractive P/E and P/B multiples. Key risks include macroeconomic volatility, competition, consumer taste changes in China, and regulatory issues. The valuation maintains a favorable position, but revenue projections led to a lower target price due to conservative assumptions.

Key Takeaways:

• BUY rating supports potential upside.
• StrongBrand performance offsets some market uncertainties.
• Amer Sports deal is a financial boost.
• Ongoing risks necessitate careful monitoring.