Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CLSA: ANTA SPORTS (02020.HK) TP Trimmed to $110 as Brand Operating Margin Expected to Be Pressured This Yr
Recommend 8 Positive 7 Negative 2 |
||||
|
||||
|
CLSA expected the share price of ANTA SPORTS (02020.HK) to be under pressure as the Company announced its 4Q25 results, with retail sales of its main Anta brand slightly missing expectations, recording a YoY decline of less than 1%, compared to the broker's anticipation of a low single-digit growth. Other business performances were in line with expectations, and the January 2026-to-date sales trend was also largely in line with estimations. The Company has achieved its FY2025 guidance, but management mentioned that the Anta and FILA brands might face operating margin pressure in 2026. The pressure for the former arises from increased marketing investments for the Winter Olympics and Asian Games, as well as channel adjustments. As for FILA, the introduction of new products using upgraded materials may not support the gross profit margin, while store investments are expected to continue. Therefore, the broker lowered its 2026/ 2027 earnings forecasts for ANTA SPORTS by 5-7%, and trimmed its target price from $116 to $110, with rating reiterated at Outperform. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
