[ET Net News Agency, 17 October 2019] HSBC Global Research raised its target price for
Anta Sports Products (02020) to HK$80 from HK$70 on higher cashflow forecasts and
maintained its "buy" rating.
The research house said retail sales growth of the core ANTA brand remains steady at
mid-teens, while that of the FILA brand has decelerated to 50-55% (from around 90% a year
ago), but still representing a very respectable level.
HSBC believes the strong performance of FILA was particularly being supported by the
company's success in rolling out the new series - like FILA FUSION - to expand its
customer reach and sustain speedy growth.
HSBC raised its profit forecasts by 3-9% in 2019-21 to reflect our higher margin
assumption. (KL)