Yamato: Raise the target price of Anta Sports (02020) to HK$108 and increase the profit forecast for this year and next two years

The Zhitong Finance App learned that Daiwa Securities released a research report stating that it will raise the Anta Sports (02020) 2026 and 2027 recurring net profit forecast by 1% and 5%. Even if no major sporting events are held next year, it still has confidence in its profit growth, reaffirmed its “buy” rating, and raised the target price from HK$93 to HK$108.

Anta's performance in the first half of the year was strong. It is the brightest share in the Chinese sporting goods industry. In the context of general downward guidance in the global sporting goods industry, Anta's management still maintains sales and operating margin guidelines for all brands. The bank believes that Anta, Amer Sports, and Asics may be the few brands that maintain or raise the guidelines. Among them, Anta's current valuation is equivalent to predicting a price-earnings ratio of about 12 times that of Asics and 22 times that of Amer Sports. The gradual increase of RMB 2 billion to RMB 10 billion in the medium term is expected to contribute more than 10% to total sales within three to five years.