Broker Name: China Galaxy International Securities (CGSI)
Date of Report: March 26, 2026
Excerpt from China Galaxy International Securities (CGSI) report.
Report Summary
- Anta Sports reported FY25 revenue growth of 13.3% year-on-year, reaching RMB 80.2bn, slightly exceeding expectations due to strong performance in its “other brands” segment.
- FY25 core net profit rose 13.9% year-on-year to RMB 13.6bn, driven by better revenue and efficient control of distribution expenses.
- Management expects low-single-digit, mid-single-digit, and 20% year-on-year revenue growth for Anta, Fila, and other brands respectively in FY26F, with continued market share gains anticipated.
- The company is rolling out a multi-store format for Anta, launching new products for Fila, and aggressively expanding “other brands” like Descente and Kolon, both domestically and overseas.
- Online sales accounted for 35.8% of total sales in FY25, up from 35.1% in FY24, with overall gross profit margin slightly contracting to 62.0% due to a higher online contribution and consolidation of Jack Wolfskin.
- Anta is focusing on overseas expansion, targeting 1,000 Southeast Asian retail points by FY28F and aiming for overseas revenue to contribute 15% by FY30F.
- Dividend payout ratio reached 50.1% in FY25 and is expected to be maintained; operating profit margin is forecast to contract slightly in FY26F due to higher distribution expenses for sports events.
- The target price has been raised to HK\$115 with an “Add” rating, reflecting improved growth expectations, especially for the “other brands” segment.
- Key risks include macroeconomic headwinds affecting demand, higher advertising and promotion spending, and potential risks from aggressive M&A activity.
Above is an excerpt from a report by China Galaxy International Securities (CGSI). Clients of China Galaxy International Securities (CGSI) can be the first to access the full report from the China Galaxy International Securities (CGSI) website: https://www.chinastock.com.hk
