"Big Banks" JP Morgan: Anta's acquisition of Puma equity moves towards globalization, target price 141 yuan

JP Morgan published a research report stating that Anta Sports (02020.HK) acquiring a 29% stake in Puma is a key strategic step towards achieving the vision of a global multi-brand sportswear group. The bank maintains an "Overweight" rating on Anta with a target price of 141 yuan.

Anta acquired the stake in Puma for 1.5 billion euros (approximately 12.3 billion yuan). The bank believes that considering Puma's brand history, its advantages in professional sports fields such as football and running, as well as its international market presence in Europe and Latin America, the valuation is reasonable. The report emphasizes that the funds for this acquisition will come entirely from Anta's internal resources, and by the first half of 2025, the company's net cash will reach 31.5 billion yuan, sufficient to handle the transaction while maintaining its dividend policy, alleviating market concerns about financing pressure. JP Morgan estimates that the transaction will only have a low single-digit percentage impact on Anta's net profit in 2026.

The bank reminds short-term investors to pay attention to two points: first, the impact of Puma's own profitability (the market expects a loss of 195 million euros in 2026) on Anta's financial statements; second, the time required for brand revitalization. The transaction is still pending approval from antitrust agencies in multiple countries and the National Development and Reform Commission of China, which is expected to take 6 to 10 months