Goldman Sachs: Still optimistic about the Chinese sports market in the medium to long term, it can record a medium to high year-on-year increase in the number of units to maintain the “buy” rating of Anta Sports (02020)

The Zhitong Finance App learned that Goldman Sachs released a research report saying that the management of Anta Sports (02020) revealed that sales had picked up from mid-August to September. As the Mid-Autumn Festival holiday moved to late September, and consumer tendencies focused on holidays and shopping festivals, it is expected to support the third and fourth quarter performance. Overall, management's operating guidelines are more confident than when they were more careful at the beginning of the year. The bank maintains Anta's “buy” rating, with a target price of HK$108.

The bank pointed out that Anta's management observed K-type differentiation in the consumer market. High-end markets performed better, while mass consumers were more cautious and selective. Driven by population structure and health needs, Goldman Sachs is still optimistic that the Chinese sports market can record a medium to high year-on-year increase in the number of units in the medium to long term.

In terms of Nike's online channel strategy reform, some dealers may need to clear inventory before terminating online distribution rights. However, Goldman Sachs believes that Nike's controlling pricing and focusing on the high-end in the long term is beneficial to the health of the industry. Management expects the Puma deal to be completed as scheduled in the first half of the fourth quarter of this year, and further mergers and acquisitions will be suspended in the future.