Anta Sport (2020 HK) Acceleration plan in next 12 months, Lead Anta to Win July 29, 2021 236

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD178.24

Investment Summary
Anta Sport announced the company’s operating data for Q2 and the 1H on July 8. The
company’s retail sales value growth in the second quarter was outstanding. Anta’s main brand
2Q21 retail sales value increased by 35%-40% Yoy; FILA brand 2Q21 retail sales value Yoy
Growth of 30%-35%; 2Q21 retail sales value of other brands increased by 70%-75% Yoy. In the
first half of the year, Anta and FILA’s retail performance exceeded the company’s original
expected growth. In addition, the company also announced the ‘Lead to Win’ acceleration
plan in the coming 24 months, providing a clear development direction.
In 2Q21, Anta’s main brand retail sales value increased by 35%-40% Yoy, and also recorded a
growth of more than 35% compared to the same period in 2019. 1Q21 online retail sales value
increased by 40% Yoy, compared with the same period in 2019 Compared with the recorded
growth of more than 100%. Retail sales (in terms of retail value) recorded a Yoy growth of
35%-40% in 1H, which was higher than the company’s originally growth target of 20%. The
overall discount has returned to a normal level; the current inventory-to-sales ratio is about
5x, maintaining a healthy level; the offline sales rate in the second quarter increased by 10
ppts compared with 2019. The company’s DTC transformation has been smooth, and the
efficiency of DTC stores in 1H21 has been improved. Benefiting from the company’s online
and offline strategy of placing inventory, the Anta brand store efficiency recovered in 1H21
exceeded 300,000, which is higher than the store efficiency of wholesale stores and the same
period in 2019.

About the author

Profile photo of Timothy Chong

Timothy Chong

Timothy Chong received Bachelor’s Degree with first class honor in Banking and Finance from University of Leicester. He is currently studying Master of investment management in Hong Kong Polytechnic University. Before joining Phillip Securities, Timothy worked at BOCOM international and he is equipped with years of experience in the capital market. Timothy is now a licensed research analyst at Phillip Securities and covers Consumer / Property Management sectors.

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