ANTA SPORTS (2020.HK) Q3 Sales in line with expectation. Significant growth from online October 23, 2020 317

PSR Recommendation: ACCUMULATE Status: Downgraded
Target Price: HKDHKD94.90

Investment Summary
Q3 operating performance is in line with market expectations
The company announced its operating performance for the 3Q20 on October 15th. As the
epidemic situation eases, the company`s operating conditions continue to improve. With the
exception of AMER, the sales of all brands have recorded positive growth compared with the
same period in 2019, which is in line with our expectations. The Anta brand recorded a low
single-digit positive growth YoY. The FILA brand recorded a positive growth of 20%-25% YoY.
Other brands recorded a positive growth of 50%-55% YoY.
Both online and offline efforts, Anta adult recorded positive growth
The overall turnover of the Anta brand recorded a positive single-digit growth. Among them,
Anta adult achieved positive growth in Q3. The YoY growth of Q1/Q2/Q3 was 20% + negative
growth/negative low single digit/positive growth respectively. Anta Kid achieved low
double-digit growth. In terms of channels, the Anta brand`s online sales growth has been
impressive, with an increase of nearly 50% in Q3, and the growth rate has increased. In
terms of discounts and inventory sale rate, affected by the epidemic and DTC transformation,
the Anta brand discount rate increased by 2-3 ppt compared with the same period last year,
and the discount rate was about 30% off. The inventory sale rate was unchanged MoM,
approximately 6 times, and is expected to be controlled at approximately 5 times at the end
of the year.

About the author

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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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