Daiwa Research lifted its target price for Anta Sports Products (02020) to HK$90 from HK$70 and maintained its "buy" rating.
With the launch of new product lines, such as the Gordon Hayward series as well as some new SKUs under the Klay Thompson line, management sees the potential for Anta brand sales growth to accelerate in 2020 to the mid-high teens (versus an expected mid-teens growth for 2019), said the research house.
Thanks to FILA's sub-brand segmentation, management remains optimistic for 30%+ YoY sales growth for FILA in 2020, driven by continued store efficiency improvements for FILA Classic and POS expansion for FILA Kids and FILA Fusion.
Daiwa lifted its revenue forecasts for 2020-21 by 4-5%, factoring in higher growth from FILA and Descente. But it trimmed its 2019 EPS estimate by 1%, factoring in a lower share of JV profits following its 5.2% stake sale. Daiwa also lifted its 2020-21E EPS by 2-4% on a higher channel mix from its retail business.
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