Company Analysis
Anta Sports (2020 HK/Buy) Taking it to the next level
> Taking it to the next level

 

2021 earnings

 

Revenue and net profit top consensus by 2% and 7%, respectively.

 

Key issues

 

Savvy marketer and the largest beneficiary of the Beijing Winter Olympics

OP margin falls from 25.8% to 22.3% due to higher SG&A caused by wholesale-to-DTC shift

Key risks

 

1) a slowdown in consumer spending due to geopolitical issues and the COVID-19 resurgence

2) margin erosion from higher raw material prices

3) an unfavorable comparison (+56% YoY in 1H21) stemming from the consumer backlash against Western
brands during last year’s Xinjiang cotton boycott.

 

 

**** Please see the attached files for details.

Author
Jieun Kim
Date
2022-03-25
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