HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Amer Sports, 52.7% owned by <a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>, has finally filed a US IPO registration. This is positive for Anta Sports as it can realise Amer's value.</li>
<li>Reported losses at Amer have increased YoY for 9M23 due to higher finance cost. But, its gross, operating, and adjusted EBITDA margins have all recorded solid improvements. </li>
<li>Assuming Amer is listed at the sector's average FY23 P/S of 1.6x, Anta Sports may book deemed disposal gain of HK$13.5bn, or about 6.8% of its market capitalisation.</li>
</ul>


Amer Sports, 52.7% owned by Anta Sports Products (2020 HK), has finally filed a US IPO registration. This is positive for Anta Sports as it can realise Amer's value.
Reported losses at Amer have increased YoY for 9M23 due to higher finance cost. But, its gross, operating, and adjusted EBITDA margins have all recorded solid improvements. 
Assuming Amer is listed at the sector's average FY23 P/S of 1.6x, Anta Sports may book deemed disposal gain of HK$13.5bn, or about 6.8% of its market capitalisation.


Anta Sports (2020 HK): An Updated Look at Implications of Amer Sports' IPO

Analyst

Steve Zhou, CFA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> announced a set of in-line 4Q23 operating data.  </li>
<li>In addition, the company has filed a registration statement with the U.S. SEC on January 4 for a proposed listing of Amer Sports on the New York Stock Exchange. </li>
<li>Anta currently trades at a forward PE of 17x based on estimated 2024 earnings, compared to a historical forward PE of 24x since 2017.</li>
</ul>



Anta Sports Products (2020 HK) announced a set of in-line 4Q23 operating data.  
In addition, the company has filed a registration statement with the U.S. SEC on January 4 for a proposed listing of Amer Sports on the New York Stock Exchange. 
Anta currently trades at a forward PE of 17x based on estimated 2024 earnings, compared to a historical forward PE of 24x since 2017.


Anta Sports (2020 HK):  In-Line 4Q23 Operational Update + Submission Of Amer Sports Listing On NYSE

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> is the second largest China sportswear company at 20% market share in 2022.</li>
<li>The thesis for Anta lies in Anta's above-industry earnings growth for the next 3 years, low market expectations on China sportswear sector, and flexible multi-brand strategy.</li>
<li>Anta trades at a forward PE of 17x based on estimated 2024 earnings, with around 15-20% expected net profit growth in 2024-2026.</li>
</ul>



Anta Sports Products (2020 HK) is the second largest China sportswear company at 20% market share in 2022.
The thesis for Anta lies in Anta's above-industry earnings growth for the next 3 years, low market expectations on China sportswear sector, and flexible multi-brand strategy.
Anta trades at a forward PE of 17x based on estimated 2024 earnings, with around 15-20% expected net profit growth in 2024-2026.


2024 High Conviction:  Anta Sports (2020 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> achieved a decent 3Q23 with sales performance of major brands outperformed. With a low comparison base, 4Q23 sales will be even more impressive. </li>
<li>Indications are that sales for the Golden Week are satisfactory and "double-11" sales are optimistic. The acquisition of MAIA ACTIVE will further add to its product portfolio.</li>
<li>Amer's IPO is another catalyst and reports are that this has been filed in the US. Anta Sports' stake may be valued at US$4bn, almost 12% of its market cap.</li>
</ul>



Anta Sports Products (2020 HK) achieved a decent 3Q23 with sales performance of major brands outperformed. With a low comparison base, 4Q23 sales will be even more impressive. 
Indications are that sales for the Golden Week are satisfactory and "double-11" sales are optimistic. The acquisition of MAIA ACTIVE will further add to its product portfolio.
Amer's IPO is another catalyst and reports are that this has been filed in the US. Anta Sports' stake may be valued at US$4bn, almost 12% of its market cap.


Anta Sports (2020 HK): Bucking the Challenging Trend

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> announced a set of strong 3Q23 operating data yesterday after market close.</li>
<li>Both Anta and Fila brands performed well in a challenging macro environment in China in 3Q23, with 3Q22 being a high base.  </li>
<li>Another bright spot is that other brands outside of Anta and Fila grew 45-50% yoy in 3Q23, with Descente up 40-45% yoy and Kolon up 65-70% yoy.</li>
</ul>



Anta Sports Products (2020 HK) announced a set of strong 3Q23 operating data yesterday after market close.
Both Anta and Fila brands performed well in a challenging macro environment in China in 3Q23, with 3Q22 being a high base.  
Another bright spot is that other brands outside of Anta and Fila grew 45-50% yoy in 3Q23, with Descente up 40-45% yoy and Kolon up 65-70% yoy.


Anta Sports (2020 HK):  Strong 3Q23 Update

China

ANTA Sports Products Limited designs, develops, manufactures, and markets sportswear, including sports footwear and apparel for professionals and the general public.

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Anta Sports Products (2020 HK)

Anta Sports (2020 HK): An Updated Look at Implications of Amer Sports' IPO

Amer Sports, 52.7% owned by Anta Sports, files for US IPO. Despite increased losses for 9M23, Amer's margins have improved. Anta Sports could gain...

Osbert Tang, CFA

Anta Sports (2020 HK): In-Line 4Q23 Operational Update + Submission Of Amer Sports Listing On NYSE

Anta Sports (2020 HK) reports a set of in-line 4Q23 operational data. In addition, the company has filed for Amer Sports listing on NYSE.

Steve Zhou, CFA

2024 High Conviction: Anta Sports (2020 HK)

Anta Sports (2020 HK) is the second largest sportswear company in China. Its above-industry earnings growth, low market expectations, and multi...

Steve Zhou, CFA

Anta Sports (2020 HK): Bucking the Challenging Trend

Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

Osbert Tang, CFA

Anta Sports (2020 HK): Strong 3Q23 Update

Anta Sports reports strong 3Q23 operating data, with both Anta and Fila brands performing well despite challenging macro conditions. Other brands...

Steve Zhou, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Anta Sports (2020 HK): An Updated Look at Implications of Amer Sports' IPO

​Amer Sports, 52.7% owned by Anta Sports, files for US IPO. Despite increased losses for 9M23, Amer's margins have improved. Anta Sports could gain...

Osbert Tang, CFA

Anta Sports (2020 HK): In-Line 4Q23 Operational Update + Submission Of Amer Sports Listing On NYSE

​Anta Sports (2020 HK) reports a set of in-line 4Q23 operational data. In addition, the company has filed for Amer Sports listing on NYSE.

Steve Zhou, CFA

2024 High Conviction: Anta Sports (2020 HK)

​Anta Sports (2020 HK) is the second largest sportswear company in China. Its above-industry earnings growth, low market expectations, and multi...

Steve Zhou, CFA

Anta Sports (2020 HK): Bucking the Challenging Trend

​Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

Osbert Tang, CFA

Anta Sports (2020 HK): Strong 3Q23 Update

​Anta Sports reports strong 3Q23 operating data, with both Anta and Fila brands performing well despite challenging macro conditions. Other brands...

Steve Zhou, CFA

Amer Sports, 52.7% owned by Anta Sports, files for US IPO. Despite increased losses for 9M23, Amer's margins have improved. Anta Sports could gain...

Anta Sports (2020 HK) reports a set of in-line 4Q23 operational data. In addition, the company has filed for Amer Sports listing on NYSE.

Anta Sports (2020 HK) is the second largest sportswear company in China. Its above-industry earnings growth, low market expectations, and multi...

Anta Sports had a solid 3Q23, with major brand sales outperforming. 4Q23 sales are expected to be even better. Acquisition of MAIA ACTIVE and...

Anta Sports reports strong 3Q23 operating data, with both Anta and Fila brands performing well despite challenging macro conditions. Other brands...