Lyon: Maintaining the Anta Sports (02020) “Outperform the Market” rating target price raised to HK$110

The Zhitong Finance App learned that Lyon released a research report saying that considering Anta Sports (02020) as the first choice among sporting goods stocks rated globally, the target price was raised from HK$103 to HK$110, maintaining a “outperforming the market” rating.

Anta Sports' performance for the first half of this year beat expectations. Net profit increased 35% year on year. After deducting one-time revenue related to Amer Sports placement, adjusted net profit increased 13% year over year to 7.938 billion yuan. Overall gross margin during the period expanded 0.5 percentage points year on year to 63.9%, higher than the bank's forecast of 63.5%; operating margin expanded 0.7 percentage points to 27% year on year, which was also higher than the bank's forecast of 25.1%.

Management maintains the year-round sales and operating margin guidelines for all brands. Overseas sales are expected to reach approximately RMB 2 billion this year, with a target of reaching RMB 10 billion within five years. The bank raised Anta's 2026-2028 sales forecast by 2% and its recurring net profit forecast by 4% to 6%. Currently, it is expected that sales of the Anta brand, FILA and other brands will increase by 3%, 6% and 35%, respectively. Operating margins will reach 20.3%, 26.6%, and 27.9%, respectively. The adjusted net profit forecast for the whole year is RMB 14.47 billion.