Anta Sports Products Ltd.

ANTA Sports Products is principally engaged in the manufacturing, trading and distribution of sporting goods, including footwear, apparel and accessories, in the People's Republic of China. As of Dec 31 2014, there were 7,662 ANTA Stores, 1,228 Kids sportswear series stores and 519 FILA stores in China, Hong Kong and Macao.
  • TickerA0MVDZ
  • ISINKYG040111059
  • SectorPersonal Goods
  • CountryGermany

Analysts

UOB
Robin Yuen

Sportswear - 1H19 results wrap-up; 2H19 outlook.

Sportswear companies’ 1H19 earnings generally beat estimates on faster top-line growth. They remain bullish on 2H19 outlook with full-year guidance maintained (Xtep and Shenzhou) or even upgraded (Anta and Li Ning). We see resilient endconsumer demand for sportswear despite trade tensions, while there is a budget for upgrading other areas (eg A&P, better quality products) due to savings from VAT reduction. Maintain OVERWEIGHT with top pick Anta (2020 HK).

UOB
Carol Dou Xiao Qin ...
  • Eric Wang Zhen
  • Jayson Kong
  • Johnny Yum Chung Man
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Katrina Chen Chucan
  • Ken Lee
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Robin Yuen
  • Zhifeng Shen

Greater China Daily: Tuesday, August 27, 2019

KEY HIGHLIGHTS CHINA Results Anta Sports (2020 HK /BUY/HK$61.25/Target: HK$68.00) 1H19: Results beat profit alert. China Merchants Bank (3968 HK/BUY/HK$35.90/Target: HK$43.03) 1H19: Profit growth in line; asset quality beats expectations. Great Wall Motor (2333 HK/SELL/HK$4.93/Target: HK$2.00) 2Q19: Core profit slumps 59% yoy, in line; sustained earnings headwind from price cuts. Slash target price to HK$2.00. Goldwind Science & Technology (2208 HK/BUY/HK$8.44/Target: HK$9.65) 1H19: Strong WTG sales and profit margin recovery ahead. Upgrade to BUY. PICC Property and Casualty (2328 HK/B...

ANTA SPORTS PRDS.LTD. reduced its risk exposure resulting in an upgrade to Slightly Positive

ANTA SPORTS PRDS.LTD. (HK), a company active in the Footwear industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date August 13, 2019, the closing price was HKD 56.85 and its potential was estimated at HKD 66.12.

UOB
Robin Yuen

Sportswear - 1H19 results preview: Strong growth with multiple positive alerts.

We expect strong sales growth from market leaders in 1H19 via new non-core brands, while core-brand sales are expected to be resilient. Furthermore we expect margin expansion on the back of operating leverage, higher-margin non-core brands, and self-operated retail driving business mix. While most results for 1H19 have been pre-flagged, outlook for 2H19 looks to be smooth. Maintain OVERWEIGHT with Anta and Xtep as top picks. We downgrade Li Ning to HOLD as it has reached our target price.

UOB
Joyce Chan Pui Lai ...
  • Nick Liu Sunliang
  • Robin Yuen
  • Shaun Tan

Greater China Daily: Friday, July 12, 2019

KEY HIGHLIGHTS CHINA Sector Property Embracing megacity clusters. Update Anta Sports (2020 HK/BUY/HK$51.30 /Target: HK$60.00) 2Q19 operational data in line while management rebuts short-seller allegations. TRADERS’ CORNER China Overseas Grand Oceans (81 HK): Trading Buy Range Greentown Service (2869 HK): Trading Buy Range

UOB
Robin Yuen

Anta Sports - 2Q19 operational data in line while management rebuts short-seller allegations.

Anta’s 2Q19 sales trended above our full-year estimate and are in line with management’s internal expectations. Management further rebutted the remaining allegations from Muddy Waters’ short-seller report convincingly. Channel inventory and retail sales growth remain healthy. We recommend accumulating Anta on weakness as it remains one of our top picks in the sportswear sector. Maintain BUY and target price of HK$60.00, implying 25x 2019F PE.

UOB
Benyamin Mikael ...
  • Jonathan Koh
  • Kong Ho Meng
  • Malaysia Research Team
  • Napat Vorajanyavong
  • Nick Liu Sunliang
  • Robin Yuen
  • Shaun Tan
  • Vincent Khoo Boo Aik

Regional Morning Notes - Friday, July 12, 2019

CHINA Sector Property: Embracing megacity clusters. Update Anta Sports (2020 HK/BUY/HK$51.30 /Target: HK$60.00): 2Q19 operational data in line while management rebuts short-seller allegations. INDONESIA Update Erajaya Swasembada (ERAA IJ/SELL/Rp2,090/Target: Rp1,680): 2Q19 results preview: To record higher qoq profit. Downgrade to SELL on high downside risk. MALAYSIA Update My EG Services (MYEG MK/BUY/RM1.57/Target: RM1.66): Long-term prospects remain intact while pending various watershed events to materialise in near term. Serba Dinamik Holdings (SDH MK/BUY/RM4.16/Target: RM5.20): Upgrade...

Ivan Su

Morningstar | No Mud Will Stick on Anta, Fair Value Maintained At HKD 55

Narrow-moat Anta’s share price has fallen slightly following a series of short-selling reports from Muddy Waters. In three separate reports, Muddy Waters highlights Anta’s relationship with its distributors and an asset disposal transaction as red flags to Anta’s book of business. While we acknowledge there might be a close ties between the brand and its distributors, such a relationship does not post a threat to shareholder capital nor the company’s future returns. While the argument that Anta insiders are selling valuable assets at losses might look compelling on a price/sales basis, the nat...

Ivan Su

No Mud Will Stick on Anta, Fair Value Maintained At HKD 55

Narrow-moat Anta’s share price has fallen slightly following a series of short-selling reports from Muddy Waters. In three separate reports, Muddy Waters highlights Anta’s relationship with its distributors and an asset disposal transaction as red flags to Anta’s book of business. While we acknowledge there might be a close ties between the brand and its distributors, such a relationship does not post a threat to shareholder capital nor the company’s future returns. While the argument that Anta ...

UOB
Robin Yuen

Anta Sports - Retelling an open secret.

Muddy Waters issued a report alleging Anta’s margins are fraudulent and boosted by “secretly controlled” distributors, who in fact are Anta’s “subsidiaries”, in its 92- page report on 8 July. Given our coverage of Fujian apparel companies, we understand that this “right-hand, left-hand system” is well-known and commonplace. Moreover, Anta is likely to be in compliance with all IFRS and HKEx rules. Maintain BUY and target price of HK$60.00.

UOB
Carol Dou Xiao Qin ...
  • Eric Wang Zhen
  • Jayson Kong
  • Johnny Yum Chung Man
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Katrina Chen Chucan
  • Ken Lee
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Robin Yuen
  • Zhifeng Shen

Greater China Daily: Tuesday, August 27, 2019

KEY HIGHLIGHTS CHINA Results Anta Sports (2020 HK /BUY/HK$61.25/Target: HK$68.00) 1H19: Results beat profit alert. China Merchants Bank (3968 HK/BUY/HK$35.90/Target: HK$43.03) 1H19: Profit growth in line; asset quality beats expectations. Great Wall Motor (2333 HK/SELL/HK$4.93/Target: HK$2.00) 2Q19: Core profit slumps 59% yoy, in line; sustained earnings headwind from price cuts. Slash target price to HK$2.00. Goldwind Science & Technology (2208 HK/BUY/HK$8.44/Target: HK$9.65) 1H19: Strong WTG sales and profit margin recovery ahead. Upgrade to BUY. PICC Property and Casualty (2328 HK/B...

UOB
Joyce Chan Pui Lai ...
  • Nick Liu Sunliang
  • Robin Yuen
  • Shaun Tan

Greater China Daily: Friday, July 12, 2019

KEY HIGHLIGHTS CHINA Sector Property Embracing megacity clusters. Update Anta Sports (2020 HK/BUY/HK$51.30 /Target: HK$60.00) 2Q19 operational data in line while management rebuts short-seller allegations. TRADERS’ CORNER China Overseas Grand Oceans (81 HK): Trading Buy Range Greentown Service (2869 HK): Trading Buy Range

UOB
Nick Liu Sunliang ...
  • Robin Yuen
  • Zhifeng Shen

Greater China Daily: Tuesday, July 9, 2019

KEY HIGHLIGHTS CHINA Initiate Coverage Wind Power Benefits from wind power installation rush. Sector Property Weekly: Trust financing will face tighter policies. Update Anta Sports (2020 HK/BUY/HK$51.25/Target: HK$60.00) Retelling an open secret.

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Michael Cheung Ho Bun
  • Robin Yuen

Greater China Daily: Friday, May, 31, 2019

KEY HIGHLIGHTS CHINA Sector Healthcare Challenges and opportunities in 2H19. Update Anta Sports (2020 HK/BUY/HK$46.95/Target: HK$60.00) Short seller rehashes old arguments. TRADERS’ CORNER MicroPort (853 HK): Trading Sell Range Shenzhou Int’l (2313 HK): Trading Sell Range

UOB
Joyce Chan Pui Lai ...
  • Nick Liu Sunliang

Greater China Daily: Tuesday, April, 16, 2019

KEY HIGHLIGHTS CHINA Sector Property Weekly wrap-up: Low inventory levels in tier-1 and tier-2 cities. TRADERS’ CORNER Anta Sports (2020 HK): Trading Buy Range Lifestyle International (1212 HK): Trading Buy Range

ANTA SPORTS PRDS.LTD. reduced its risk exposure resulting in an upgrade to Slightly Positive

ANTA SPORTS PRDS.LTD. (HK), a company active in the Footwear industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date August 13, 2019, the closing price was HKD 56.85 and its potential was estimated at HKD 66.12.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

UOB
Robin Yuen

Sportswear - 1H19 results wrap-up; 2H19 outlook.

Sportswear companies’ 1H19 earnings generally beat estimates on faster top-line growth. They remain bullish on 2H19 outlook with full-year guidance maintained (Xtep and Shenzhou) or even upgraded (Anta and Li Ning). We see resilient endconsumer demand for sportswear despite trade tensions, while there is a budget for upgrading other areas (eg A&P, better quality products) due to savings from VAT reduction. Maintain OVERWEIGHT with top pick Anta (2020 HK).

UOB
Robin Yuen

Sportswear - 1H19 results preview: Strong growth with multiple positive alerts.

We expect strong sales growth from market leaders in 1H19 via new non-core brands, while core-brand sales are expected to be resilient. Furthermore we expect margin expansion on the back of operating leverage, higher-margin non-core brands, and self-operated retail driving business mix. While most results for 1H19 have been pre-flagged, outlook for 2H19 looks to be smooth. Maintain OVERWEIGHT with Anta and Xtep as top picks. We downgrade Li Ning to HOLD as it has reached our target price.

UOB
Robin Yuen

Sportswear - Minimal impact from trade war or potential tariffs.

Investors are concerned about whether the trade war and tariff rounds may have affected sportswear brands and OEM manufacturers. According to the latest update from the respective company managements, the impact has been at zero for domestic brands and minimal for the OEM names under our coverage. Maintain OVERWEIGHT as we see domestic consumption as a key driver of the Chinese economy and sportswear remains more resilient to the economic slowdown.

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

As support levels continue to hold for the MSCI ACWI and S&P 500, our neutral but constructive outlook remains. Additionally, we reiterate our expectation for more consolidation and volatility. In today's report we highlight actionable stocks within countries that are displaying bullish price and relative strength trends. • Asia/Pacific. In Japan, the TOPIX continues to exhibit leadership characteristics. Stay overweight. Broadly speaking, global Consumer Staples stocks are lagging, but Japan is the exception. Hong Kong's Hang Seng Index also remains on bullish footing... see pages 2 and 5-11...

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