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ANTA Sports Products Ltd. (HK:2020)
:2020
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ANTA Sports Products
(2020)
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Rating:68Neutral
Price Target:
HK$89.00
â–²(8.80% Upside)
ANTA Sports Products' overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and a solid balance sheet. However, technical analysis indicates bearish momentum, which weighs down the score. The stock's valuation is attractive, with a reasonable P/E ratio and a good dividend yield, providing some support to the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.
Profitability
High profitability margins demonstrate efficient cost management and strong pricing power, ensuring sustainable earnings over time.
Balance Sheet Health
A strong balance sheet with moderate leverage enhances financial stability and provides flexibility for future investments and growth.
Negative Factors
Free Cash Flow Decline
Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term financial flexibility.
Capital Management
Inefficient capital management can hinder cash flow optimization, affecting the company's ability to invest in growth opportunities and maintain financial health.
Cash Flow Conversion
Lower cash flow conversion indicates challenges in turning profits into cash, potentially affecting liquidity and operational flexibility in the long term.
ANTA Sports Products (2020) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$223.18B
Dividend Yield3.12%
Average Volume (3M)7.73M
Price to Earnings (P/E)14.0
Beta (1Y)1.07
Revenue Growth13.55%
EPS Growth13.30%
CountryHK
Employees65,900
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)2.79
Shares Outstanding2,796,653,300
10 Day Avg. Volume6,547,203
30 Day Avg. Volume7,727,444
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)3.42
Price to Sales (P/S)2.98
P/FCF Ratio15.88
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit6.02
Enterprise Value/Ebitda9.52
Forecast
1Y Price Target
$114.78Price Target Upside40.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)5.17
Revenue Forecast (FY)$86.95B
ANTA Sports Products Business Overview & Revenue Model
Company DescriptionANTA Sports Products Limited, together with its subsidiaries, designs, develops, manufactures, and markets sporting footwear, apparel, and accessories worldwide. The company offers sportswear, including running, cross-training, basketball, soccer, boxing, winter sports, boxing, taekwondo, gymnastics, weightlifting, wrestling, outdoor sports, women's fitness, and skiing products, as well as sports fashion clothing, kid's sports fashion clothing and sportswear, and leisure footwear products under the FILA, FILA KIDS, FILA FUSION, KINGKOW, KOLON SPORT, SPRANDI, FILA FUSION, ANTA, DESCENTE, and ANTA KIDS brands. It also provides management, product design, logistics, and information technology services; manufactures shoe soles; holds trademarks; and develops and manages properties. As of December 31, 2021, it operated 9,403 ANTA stores; 2,054 FILA stores; 182 DESCENTE stores; and 152 KOLON SPORT stores. It also exports and imports sporting shoes. The company was founded in 1991 and is headquartered in Jinjiang, the People's Republic of China. ANTA Sports Products Limited is a subsidiary of Anta International Group Holdings Limited.
How the Company Makes MoneyANTA Sports Products generates revenue through multiple streams, primarily from the sale of its sports footwear and apparel. The company's revenue model is built on wholesale distribution to retailers, direct-to-consumer sales through branded stores, and e-commerce platforms. Key revenue streams include the sale of performance sports shoes, casual footwear, sports apparel, and accessories. ANTA also benefits from strategic partnerships and sponsorships, including collaborations with high-profile athletes and teams, which boost brand visibility and drive sales. Additionally, the company's investment in research and development for innovative product lines helps attract customers and maintain a competitive edge in the market.
ANTA Sports Products Earnings Call Summary
Earnings Call Date:Mar 26, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Mar 25, 2026
Earnings Call Sentiment Positive
ANTA Sports achieved record-breaking revenues and significant growth in operating efficiency and cash flow, demonstrating strong overall performance. However, challenges such as low consumer confidence and market share shifts were noted.Q4-2023 Updates
Positive Updates
Record-Breaking Revenue and Growth
In 2023, ANTA Sports achieved the best results in its history with a revenue of CNY 62.3 billion, up 16% year-on-year. ANTA brand revenue exceeded CNY 30 billion for the first time, up 9%, while FILA's revenue was CNY 25.1 billion, up 16.6%, and other brands saw a 57.7% increase to CNY 6.9 billion.
Improved Operating Profit Margins
The operating profit margin for the group increased by 3.7 percentage points to 24.6% year-on-year, attributed to improvements in shop and area efficiency as well as merchandise inventory management.
Strong Cash Flow and Dividend Payout
Operating cash flow was CNY 19.6 billion, up 60% year-on-year. The company maintained a dividend payout ratio of 50.7%.
Amer Sports Performance
Amer Sports revenue in RMB terms reached CNY 31 billion, up 30% year-on-year, with EBITDA up 45%. Amer Sports' listing on the New York Stock Exchange will yield a one-off noncash gain of CNY 1.6 billion for ANTA.
Healthy Inventory and Working Capital Management
Inventory turnover days decreased by 15 days year-on-year, indicating efficient inventory management. The total inventory decreased while revenue increased by 16%.
ESG Achievements
ANTA reduced overall greenhouse gas emission intensity by 36% and water resource consumption density by 9%. The company improved its ESG ratings with MSCI rising to BBB.
Negative Updates
Consumer Confidence Challenges
Consumer confidence remained low, especially in the second half of the year, with the confidence index dropping to 87.6%.
K-Shaped Recovery in Consumer Market
Luxury and high-cost-effective brands experienced good growth, but middle-market brands faced difficulties.
Decline in Industry Concentration
The market share of the top 5 sports brands decreased from 60% in 2021 to 55% in 2023, indicating a decrease in industry concentration.
Company Guidance
During the Q4 2023 earnings call for ANTA Sports Products Limited, the company reported robust financial performance with a revenue of CNY 62.3 billion, marking a 16% year-on-year increase. The ANTA brand achieved a revenue exceeding CNY 30 billion for the first time, up by 9%, while FILA's revenue rose by 16.6% to CNY 25.1 billion. The other brands saw a significant revenue increase of 57.7%, reaching CNY 6.9 billion. Operating profit margin improved by 3.7 percentage points to 24.6%, with ANTA at 22% and FILA at 27.6%. Profit attributable to shareholders, excluding Amer Sports, rose by 44.9% to CNY 10.9 billion. The company also reported a strong operating cash flow of CNY 19.6 billion, a 60% year-on-year increase. Inventory turnover days reduced by 15 days to 123 days, reflecting improved inventory management. ANTA highlighted its strategic focus on single-focus, multi-brand, and globalization strategies to sustain high-quality growth, with plans to continue expanding in international markets.ANTA Sports Products Financial Statement Overview
Summary
ANTA Sports Products demonstrates strong financial performance characterized by consistent revenue growth, high profitability, and a solid balance sheet. While cash flow generation remains robust, attention to capital management can enhance free cash flow growth. The company's financial health is well-positioned for future expansion within the leisure industry.Income Statement
ANTA Sports Products has shown strong revenue growth with a 13.58% increase from the previous year. The gross profit margin for 2024 stands at 62.15%, indicating efficient cost management. The net profit margin is robust at 22.02%, reflecting solid profitability. EBIT and EBITDA margins are also healthy, at 23.43% and 39.50%, respectively, highlighting effective operational management.88
Very Positive
Balance Sheet
The company's balance sheet shows a sound financial position with a debt-to-equity ratio of 0.46, indicating moderate leverage and effective use of debt. The equity ratio is strong at 54.80%, showing a high proportion of equity financing. Return on equity is impressive at 25.26%, underscoring the company's ability to generate high returns on shareholders' investments.85
Very Positive
Cash Flow
ANTA Sports Products exhibits a stable cash flow position with a free cash flow growth rate of -27.47%, due to higher capital expenditures. However, the operating cash flow to net income ratio is 1.07, indicating good cash generation relative to profits. The free cash flow to net income ratio is 0.85, signifying effective conversion of profits into free cash flow despite the recent decline.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.64B | 70.83B | 62.36B | 53.65B | 49.33B | 35.51B |
| Gross Profit | 46.84B | 44.03B | 39.03B | 32.32B | 30.40B | 20.65B |
| EBITDA | 29.62B | 27.98B | 21.15B | 16.33B | 14.95B | 10.57B |
| Net Income | 14.91B | 15.60B | 10.24B | 7.59B | 7.72B | 5.16B |
Balance Sheet | ||||||
| Total Assets | 118.23B | 112.61B | 92.23B | 69.19B | 62.67B | 51.87B |
| Cash, Cash Equivalents and Short-Term Investments | 31.15B | 34.30B | 38.64B | 28.30B | 26.90B | 21.72B |
| Total Debt | 31.59B | 28.12B | 21.47B | 19.50B | 18.32B | 16.94B |
| Total Liabilities | 48.51B | 45.88B | 36.22B | 31.36B | 31.00B | 26.04B |
| Stockholders Equity | 63.77B | 61.73B | 51.46B | 34.40B | 28.92B | 24.01B |
Cash Flow | ||||||
| Free Cash Flow | 15.38B | 13.28B | 18.31B | 10.41B | 10.37B | 6.61B |
| Operating Cash Flow | 19.17B | 16.74B | 19.63B | 12.15B | 11.86B | 7.46B |
| Investing Cash Flow | -13.29B | -14.86B | -25.79B | -4.77B | -4.67B | -1.92B |
| Financing Cash Flow | -5.18B | -5.76B | 3.47B | -7.84B | -4.95B | 1.23B |
ANTA Sports Products Technical Analysis
Negative
81.80
Price Trends
84.29
Negative
88.68
Negative
89.31
Negative
Market Momentum
-0.76
Positive
45.77
Neutral
26.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2020, the sentiment is Negative. The current price of 81.8 is below the 20-day moving average (MA) of 82.78, below the 50-day MA of 84.29, and below the 200-day MA of 89.31, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 26.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2020.
ANTA Sports Products Peers Comparison
UnderperformOutperform
Sector (61)
HK:2020
ANTA Sports Products
81.80
2.63
3.32%
HK:2331
Li Ning Company
17.68
1.53
9.49%
ANTA Sports Products Corporate Events
ANTA Sports Sees Mixed Growth in Q3 2025 Retail Sales
Oct 27, 2025
ANTA Sports Products Limited reported a low-single digit positive growth in retail sales for its ANTA and FILA brands in the third quarter of 2025 compared to the same period in 2024. However, the company’s other brands experienced a significant 45-50% growth in retail sales. These figures indicate a strong performance in the diversified brand portfolio, although the data does not represent the company’s total revenue or financial performance.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.