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ANTA Sports Products: Strategic Initiatives and Competitive Edge Support Buy Rating Despite Retail Challenges

ANTA Sports Products: Strategic Initiatives and Competitive Edge Support Buy Rating Despite Retail Challenges

In a report released today, Walter Woo from CMB International Securities maintained a Buy rating on ANTA Sports Products, with a price target of HK$111.54.

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Walter Woo has given his Buy rating due to a combination of factors that highlight ANTA Sports Products’ potential for growth and competitive positioning. Despite a slight underperformance in overall retail sales growth in the second quarter of 2025, primarily attributed to the Anta brand, other brands within the company have shown strong performance, helping to offset this weakness. The company’s strategic initiatives, such as appointing a new head of e-commerce and reforming its offline business model, are expected to enhance operational efficiency and drive future growth.
Furthermore, ANTA Sports Products is benefiting from strong growth in its outdoor brands and maintains a competitive edge over its peers. The management’s focus on cost control, including advertising and promotion expenses, staff costs, and rental fees, is expected to mitigate pressure on operating margins. Although there is a cautious outlook for the second half of 2025, the stock’s current valuation is attractive compared to its historical average, supporting the Buy rating with a revised target price of HK$111.54.

Woo covers the Consumer Cyclical sector, focusing on stocks such as Li Ning Company, Yum China Holdings, and Green Tea Group Limited. According to TipRanks, Woo has an average return of 3.0% and a 53.33% success rate on recommended stocks.

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