ANTA SPORTS PROD. HD-,10 stock discussion
2020 Anta Sports’ retail performance for the third quarter of 2024 was mixed, with its brands showing varying results:
Anta Brand: The retail sales of the Anta brand grew by mid-single digits year-on-year (yoy) in 3Q24, indicating stable performance.
Fila Brand: Fila’s retail sales, however, declined by low-single digits yoy, which was slightly below the company’s expectations.
Management Insights
Discount Rates: Management confirmed that the discount rates for all brands remained stable year-on-year during the third quarter of 2024.
Channel Inventory: The company reported that the channel inventory for the Anta brand was below five months, while Fila’s inventory was around five months. This reflects solid inventory control across its brands.
Strategic Outlook
Anta Sports plans to maintain Fila’s brand positioning and will continue to launch more differentiated products. These new products are aimed at driving future sales growth for the Fila brand, which has seen a slight sales decline.
Investment Recommendation
Rating: The broker reiterated an “Add” rating for Anta Sports, reflecting continued confidence in the company’s long-term growth strategy.
Target Price: The target price has been adjusted to HK$116, based on a Discounted Cash Flow (DCF) valuation.