Credit Suisse is more optimistic about China's sportswear industry, expecting retail sales to rise over 5% from the beginning of the year to date

The research report from Jefferies indicates a more optimistic outlook for China's sportswear industry. Despite encountering warm winter weather, retail sales during the domestic Lunar New Year holiday may still exceed expectations. The firm attributes this strong performance to government subsidy support, changes in holiday dates, and the popularization of outdoor sports.

The firm predicts that year-to-date retail sales will grow by more than 5% year-on-year, significantly accelerating from last year's flat performance in the fourth quarter, although discount rates have worsened compared to the same period last year. Overall, the firm considers the performance a positive surprise, especially in the context of warm winter weather.

After recently lowering guidance, the firm has observed that Anta (02020.HK) is stabilizing in operations, driven by a low base, store renovations, and discount optimization; it now sets a target price of HKD 95 and a "Hold" rating. Additionally, the firm sets a target price of HKD 48 and a "Buy" rating for Li Ning (02331.HK)