[ET Net News Agency, 15 January 2020] Credit Suisse raised its target price for Anta
Sports Products (02020) to HK$79 from HK$76 and maintained its "neutral" rating.
Anta held an investor call, giving details of its 4Q 2019 operational data and its new
issuance of a EUR1bn convertible bond.
The research house said overall 4Q retail sales were healthy. Anta's core brand retail
sales accelerated to high-double digits from mid-double digits in 3Q. Fila's growth was
also maintained at 50-55% while other brands grew 25-30% (3Q: 30-35%). For FY2019, Anta's
core brand grew in the mid-teens while Fila grew 55-60%.
Credit Suisse estimated potential stock dilution of 3% from the convertible bond
issuance could be a slight overhang in the near term on the share price. It lifted its
earnings forecasts by 3-4% in 2020-21, on interest savings from refinancing and slight
upwards revision on Anta's revenue growth. (KL)