[ET Net News Agency, 16 July 2020] Huatai Research trimmed its target price for Anta
Sports Products (02020) to HK$88.5 from HK$90.6 and reiterated its "buy" rating.
The research house said Anta's profit warning (excluding joint-venture losses from Amer
Sports) was in line with Huatai's estimate. Despite beating its retail sales growth target
for 1H, management guided down its 2H target for the Anta/Fila brands to 5-10%/20-30% from
low-teen/30%, given the worse-than-normal channel inventory level and retail discount.
That said, Huatai remains positive on Anta's rapid recovery and estimated net profit
growth of 33% in 2H and 54% in 2021. (KL)