Jinwu Finance News | Soochow Securities issued a research report stating that Anta Sports (02020) had a revenue of 33.735 billion yuan in the first half of the year, a year-on-year increase of 13.8%. The net income attributable to shareholders was 7.721 billion yuan, a year-on-year increase of 62.6%. Excluding the net income from joint ventures and associates, the net income was 6.161 billion yuan, a year-on-year increase of 17.0%. The company announced a mid-term dividend of HKD 1.18 per share, with a dividend payout ratio of 50.1%. At the same time, the company announced a share repurchase plan to repurchase up to 10 billion Hong Kong dollars worth of company shares within the next 18 months. The repurchased shares will be cancelled, demonstrating the management's confidence in the company's prospects.

The bank pointed out that the Anta brand's revenue in the first half of the year was 16.08 billion yuan, a year-on-year increase of 13.5%, accounting for 48% of total revenue. The revenue growth slightly outpaced the growth in sales, mainly due to further advancement in direct-to-consumer (DTC) business in the first half of the year. The revenue of FILA brand in the first half of the year was 13.056 billion yuan, a year-on-year increase of 6.8%, accounting for 39% of total revenue. The bank expects that the growth of FILA brand mainly comes from the wholesale business, while the children's and fashion segments are undergoing adjustments.

The bank continued to state that Amer Sports had a revenue of 15.5 billion yuan in the first half of the year, a year-on-year increase of 14.14%. The net income was 9.98 million yuan, turning a profit compared to the same period last year. The three core brands, namely Salomon, Wilson, and Arc'teryx, each have a unique positioning and show good growth momentum. The net loss contribution from joint ventures and associates by Anta Sports in the first half of the year decreased from 516 million yuan in the first half of 2023 to 19 million yuan, while the company also gained a one-time income of 1.58 billion yuan from its listing.

The bank stated that in the weak consumer environment of the first half of the year, the company maintained high-quality growth across multiple brands, reflecting excellent management and operational capabilities. The announcement of a billion Hong Kong dollar share repurchase plan demonstrates the company's confidence in its development. The management maintains a double-digit growth target for Anta brand revenue in 2024, with a slight adjustment of the growth target for FILA brand from double-digit growth to high single-digit growth. The OPM target remains at 20%-25% for Anta and 25%-30% for FILA. Taking into account the better-than-expected profit margin performance in the first half of 2024 and the relatively weak domestic consumer environment, the bank adjusted the net income attributable to shareholders for 2024-2026 from 13.29/13.72/15.5 billion yuan to 13.68/13.48/15.19 billion yuan, corresponding to a PE ratio of 14/14/13 times, and maintains a "buy" rating.