Guangda Securities has released a research report stating that it maintains a 'buy' rating on Anta Sports (02020) and continues to be bullish on the company as a sports leader with multiple brands and multiple distribution points. The Paris Olympics is coming soon, and the company's brand visibility is expected to continue to grow. In addition, the company continues to control costs well, especially in terms of rent and Paris Olympic marketing expenses, and is expected to continue to achieve high-quality growth. It maintains the company's profit forecast for 2024-2026, corresponding to earnings per share of RMB 4.59, 4.89, and 5.57, respectively.
The main points of view of Everbright Securities are as follows:
In 24Q2, the sales revenue of each brand remained steady, while inventory and discounts continued to be healthy.
Anta Sports has announced the operating situation of the second quarter in 2024. In terms of brands, the retail sales revenue of Anta brand, FILA and other brands increased by a medium unit number, a high unit number, and 40-45% year-on-year, respectively. In terms of accumulated retail revenue in the first half of the year, the retail revenue of Anta brand, FILA, and other brands increased by a medium unit number, a high unit number, and 35-40% year-on-year, respectively.
Anta brand: Under the high base in 23Q2, the retail sales revenue of Anta brand in 24Q2 also realized rapid growth, and the growth in medium unit number increased faster than that of 24Q1. The inventory turnover ratio of Anta brand in 24Q2 was less than 5 months, and the ratio was maintained month-on-month. The retail discount improved about 1 point over 24Q1 and was basically flat year-on-year, of which the online discount improved 1-2 points year-on-year. In terms of products and channels, the retail sales revenue of Anta's large products and children’s products increased by a high unit number and a medium unit number, respectively; the online retail revenue increased by 20-25% year-on-year, and the growth rate was basically the same as that of 24Q1.
FILA brand: The retail sales revenue of FILA brand in 24Q2 increased at a higher unit number year-on-year than in 24Q1 and the growth rate was slightly slower. The retail discount of FILA in 24Q2 was basically the same year-on-year, and the inventory turnover ratio was less than 5 months and remained stable month-on-month. In terms of products and channels, the retail sales revenue of FILA's large products increased by a high unit number, and the flow rates of trendy and children's shoes were relatively weak. FILA's e-commerce revenue continued to grow at a faster rate, with a year-on-year increase of 20%.
Other brands: The retail sales revenue of other brands maintained rapid growth in 24Q2, with KOLON's growth rate faster than Diadora's. The two brands' retail discounts were comparable year-on-year, but KOLON's online and offline discounts improved by 6-7 percentage points overall. The inventory turnover ratio of the two brands was 5 months and improved year-on-year.
Multi-brand products and channels have actively exerted their force and achieved synergistic growth.
In the second quarter of Anta brand, a variety of products were launched around Owen, the champion, and the Olympics. Tribes series board shoes were launched around Owen, and City-to-City road running shoes, PRO windproof and thin windbreaker, and LT thin sun protection clothing were launched around champions. The Chinese delegation's award-winning clothes were released for the Paris Olympics, and a professional slow-running shoe PG7 with a price of RMB 399 was also launched. It opened ANTA ARENA and Anta 0 Carbon Mission new store types on the channel side to optimize the channel structure. FILA brand continued to upgrade the store image, increase the proportion of professional sports and footwear products, and strengthen the construction of mental categories such as golf and tennis. Kolon and Diadora in other brands maintained rapid growth and continued to expand their scale.