Excluding the impact of Amer Sports’ losses in the first half of last year, profit attributable to shareholders will increase by no less than 65% (approximately 2.38 billion yuan in mid-2020). If Amer Sports’ data is taken into account, the increase will be no less than 110%. , that is, no less than 3.48 billion (about 1.658 billion yuan in mid-2020).
In the first half of 2020, Anta Sports achieved revenue of 14.669 billion yuan, a year-on-year decrease of 1%; operating profit was 3.604 billion yuan, a year-on-year decrease of 15.3%; including the impact of joint venture losses, the net profit attributable to shareholders was 1.658 billion yuan, down 28.6% year-on-year.
The expected net profit growth is mainly due to the fact that in mid-2021, the impact of the epidemic on mainland China’s retail market has relatively declined significantly. The revenue of ANTA brand, FILA brand and other brands is compared with the mid-2020 record. The company has rebounded strongly, resulting in the group’s overall expected revenue increasing by more than 50% year-on-year, and its share of losses from joint ventures expected to decrease year-on-year, among other factors.
Anta’s expected operating profit will increase compared with the mid-term of 2020 mainly due to (including but not limited to): the retail discounts of each brand’s retail business will decrease compared with the mid-term of 2020. It is expected to further increase the overall gross profit margin of the Group; the retail business scale of FILA brand and other brands has expanded relatively rapidly, achieving better operating efficiency.
From a full-year perspective, Zheshang Securities predicts that Anta Sports’ net profit attributable to the parent company in 2021/22/23 will increase by 55%/27%/22% year-on-year to 80/102/124 billion.
Anta Sports’ stock price rose 5.38% to HK$178 as of writing. The latest market value is approximately HK$471.4 billion, or US$60.7 billion, exceeding Adidas, which has a market value of US$56.97 billion. Last year, the group’s revenue increased for seven consecutive years, up 4.7% year-on-year to 35.5 billion yuan, and its growth rate led the industry in the Chinese market. </p