Anxin International released a research report stating that it maintains the “buy” rating of Anta Sports (02020) and predicts EPS of 4.26/4.88/5.46 yuan for 2024-2026, with a target price of HK$115. As a leading enterprise in China's sporting goods industry, the company will give priority to enjoying the dividends brought by the development of the industry.
Anta's main brand 24Q2 achieved high unit growth over the same period last year, while large goods and children achieved high and medium unit growth respectively, accelerating month-on-month. The number of offline units increased year over year, while e-commerce increased 20-25% year over year. The number of units of the 24H1 main brand increased year-on-year (close to the high number of units). The year-to-date target completion rate is 100%. Inventory and discounts remained good, the inventory ratio remained below 5, and the overall discount improved by 1pp compared to the previous month.
In terms of new products, PG7, a jogging cushioning technology platform specially built for the public, was released in June. Anta Travelbu and Anta Traveller, which are equipped with PG7 technology, are priced at 399/299 yuan respectively, continuing to consolidate the public position and are expected to drive rapid growth in the running category. Furthermore, the Owen series will start gaining momentum in the second half of the year and will continue to drive performance in the basketball category in the future. At the same time, the main brand launched cutting-edge stores such as Anta Champion and ANTASNEAKERVERSE in top business districts, and launched Super Anta stores in Olay to continuously improve store efficiency.