In "Major Banks," China International Capital Corporation: Anta's acquisition of Puma equity is expected to enhance international competitiveness, with a target price of 110.91 yuan

CICC published a research report stating that the transaction price for Anta Sports (02020.HK) to acquire PUMA is considered reasonable after taking into account the long-term value of the brand. The firm believes that Puma can enrich Anta's brand portfolio and is highly complementary with several of its brands across multiple dimensions such as product mix and regions, which is expected to further enhance Anta's overall international competitiveness.

Previously, Anta Sports developed FILA, Descente, and KOLON into well-reputed well-known brands in China and accelerated the global development of brands under Amer Sports in the global sports goods market. The firm believes that Anta has built a brand construction, retail, and supply chain system that supports global development, accumulating successful experiences validated by the market. After the transaction is completed, Anta will seek to appoint representatives to Puma's supervisory board to support Puma's management in promoting plans to help reactivate the brand value.

The firm maintains a "outperform the industry" rating for Anta, with a target price of 110.91 yuan, and keeps its earnings per share forecast for last year at 4.71 yuan. Considering the reduction in interest income brought by the acquisition and PUMA's short-term losses, the earnings per share forecasts for Anta for the next two years have been revised down by 5% and 8% to 4.76 and 5.04 yuan, respectively