JP Morgan lowered the target price for ANTA SPORTS to 130 yuan and continued to recommend "overweight," expecting market share to further increase

JP Morgan published a research report stating that ANTA SPORTS (02020.HK) is expected to meet performance expectations in 2025, with sales and core profits growing by 13% and 14% year-on-year, respectively. The company guided that this year's core ANTA brand retail sales will achieve low single-digit growth, with an operating profit margin of about 20%; FILA retail sales will achieve mid-single-digit growth, with an operating profit margin of about 25%; other brand retail sales will grow by over 20%, with an operating profit margin of over 25%.

The report indicated that although some investors believe the guidance is overly conservative, the bank considers the guidance realistic and highly visible, and also expects ANTA's market share to further increase this year. Despite intensified competition, it is believed that the company's well-executed multi-brand strategy and greater overseas expansion potential compared to peers should enable it to seize more opportunities.

The bank has lowered its earnings forecasts for 2026 to 2027 by 2% to 3%, with the target price reduced from 141 yuan to 130 yuan, maintaining an "overweight" rating