Daiwa released a research report saying that it reiterated the "Buy" rating of Anta Sports (02020), which is unmatched in the execution of multi-brand strategies, helping to withstand short-term challenges and provide sustainable long-term growth. The target price was raised from HK$110 to HK$120.

The report stated that considering the company's overseas expansion strategy, its 2025 and 2026 earnings per share forecast will be slightly lowered by 1% to reflect a more conservative profit margin forecast. Management said that sales momentum from April to the present has generally remained strong in the first quarter and is moving towards management goals. Online sales continue to outperform offline. Compared with first-and second-tier cities, low-tier cities have a better retail sales rate during the May Day Golden Week. Management is preparing to launch targeted marketing for the Paris Olympics starting in June. Related promotion expenses will be less than in 2022, but advertising and marketing expenses are expected to be more evenly distributed this year.

The management said that it has noticed that the performance of major international brands in the Chinese market has been divided so far this year, roughly maintaining last year's momentum, while the rapidly growing emerging brands have not actually put pressure on ANTA. The bank noted that Anta benefited from future improvements in channel inventory and discounts from its peers. Management stated that it currently only operates in Southeast Asia (such as the Philippines, Malaysia and Vietnam)gamesthatyoucanearncryptoAbout 200 stores have been opened, and the revenue and profit contribution are still not obvious. The management is still striving for Anta and itsgamesthatyoucanearncryptoHis brand's total retail revenue in overseas markets can reach US$1.5 billion. At the same time, we also pay attention to expansion opportunities in the Middle East and Africa, as well as mature markets such as Europe and the United States.

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