Goldman Sachs: Assigns "Buy" rating to ANTA SPORTS with a target price of 108 yuan

Goldman Sachs published a research report indicating that ANTA Sports (02020.HK) has invested in the US-listed sports goods company Amer Sports (AS.US) (which owns brands such as Arc'teryx, Salomon, Wilson, etc.), which reported fourth-quarter earnings per share that exceeded expectations, driven by strong performance across all business segments. However, the adjusted EBIT margin was 12.5%, lower than Goldman Sachs and market consensus, mainly due to increased investment in Salomon. US consumer goods analysts noted that Amer's official guidance for fiscal year 2026 includes mixed signals, with the company expecting revenue growth of 16% to 18%, but adjusted earnings per share expectations of $1.10 to $1.15.

In the fourth quarter, Amer Sports' Greater China region maintained strong growth, with a year-on-year increase of 42%, and the three major brands performed steadily. Management emphasized that the performance during the Lunar New Year period was very positive for Amer and the overall sports goods market, which aligns with the bank's industry observations, but trends after the holiday still need to be monitored.

Overall, the bank believes that the implications for ANTA are mixed. On the negative side, the net profit reported under international financial reporting standards by Amer implies that ANTA's actual investment returns from Amer in the second half of 2025 will be about 3% lower than the bank's current forecast, and Amer's preliminary adjusted earnings per share guidance for 2026 is below Goldman Sachs and market consensus. However, Amer's business in China remained robust in the fourth quarter despite a high base, and the trading situation during the Lunar New Year was encouraging. Long-term investments in sales, general, and administrative expenses may drive more sustainable growth for the Salomon brand. The bank continues to believe that Amer's brand portfolio possesses strong brand strength and category expansion capabilities, with opportunities to gain market share in China.

Goldman Sachs maintains a positive outlook on ANTA's long-term growth prospects, based on its multi-brand platform and strong execution in cost control in a volatile operating environment. The bank maintains a "Buy" rating with a target price of 108 yuan