Zhejiang Merchants Securities: Maintain "Buy" rating on ANTA SPORTS, main brands remain stable, outdoor matrix continues to grow rapidly

According to the Zhichun Finance APP, Zhejiang Merchants Securities released a research report stating that they expect the results of ANTA SPORTS (02020) brand's online and offline reforms to gradually manifest, as well as the continued good momentum of the FILA and outdoor brand matrix. Coupled with the development of the Jack Wolfskin and Maia brand businesses, the group's multi-brand matrix vitality remains significant, and they continue to recommend a "Buy" rating. ANTA brand's Q3 revenue grew in the low single digits, slightly accelerating compared to Q2, with online growth in the high single digits; offline discounts were at 71%, flat year-on-year, while online discounts were at 50%, slightly deepening; the inventory-to-sales ratio slightly exceeded 5X due to increased stocking for Double Eleven. After the adjustment of the e-commerce organizational structure, they are still adjusting the product mix and enriching content on social media platforms like Douyin; the offline Champion, SV, and Palace new store formats are performing excellently, and the Super ANTA store format continues to be actively refined. FILA's Q3 revenue grew in the low single digits, with a slight deceleration compared to the previous quarter, related to the higher temperatures in September delaying the sales of autumn clothing. Offline discounts were at 74%, while online discounts were at 58%, stable compared to the previous quarter but slightly deepening year-on-year. The inventory-to-sales ratio increased to 6X due to increased stocking for Double Eleven, and it is expected to return to 5-6X by the end of the year. In Q3, the brand held a strategic launch conference, officially announcing Yun Zhao Ke Te as the brand ambassador, collaborating with Beijing Sport University and Beijing Institute of Fashion Technology to create a closed-loop ecological chain for industry-academia-research, and actively participating as the exclusive sports footwear and apparel sponsor of the China Open Tennis Tournament. Regarding other brands, the outdoor brand matrix continued to thrive in Q3, with Descente's quarterly revenue growing by 30% and KOLON's quarterly revenue growing by 70%, both maintaining a 10% discount, sustaining a highly healthy revenue model. The women's sports brand Maia Active also saw a 45% revenue increase in Q3, continuously enhancing brand influence and channel layout. Jack Wolfskin's global business has been consolidated since June, and a brand revitalization strategy is actively being formulated