Goldman Sachs: Anta Sports Products (2020.HK) - Data Update: Factoring in Stronger Associate Income from Amer; Buy
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Goldman Sachs updated its financial model on Anta Sports Products, raising net profit forecasts for 2026 through 2028 by 0.2% to 0.6%. This upward revision primarily reflects stronger anticipated associate income contributions from Amer Sports following its exceptional first-quarter 2026 performance. Amer reported revenue growth of 32.1% year-over-year, significantly exceeding both Goldman Sachs and FactSet consensus estimates of 24.7%, with the outdoor segment acting as the principal growth driver. All business divisions outperored internal expectations.
Following Amer's decision to upgrade its full-year 2026 guidance, Goldman Sachs increased its projected associate income contribution from Amer to Anta from 1.684 billion yuan to 1.762 billion yuan. This associate income represents approximately 12% of Anta's projected 2026 group net profit. Despite these positive revisions, Goldman Sachs maintained its 12-month target price of 108 Hong Kong dollars, derived from 20 times expected 2027 price-to-earnings and discounted to mid-2026 using an 11% cost of equity.
Goldman Sachs reiterated its Buy rating on Anta Sports. With the stock trading at 76 Hong Kong dollars, the target implies 42.1% potential upside. At 13 times forward earnings, the valuation appears highly attractive. The thesis relies heavily on Anta's exceptional multi-brand execution and rigorous cost management capabilities, effectively navigating a consumer environment characterized by softening second-quarter sales trends and underwhelming Labor Day holiday spending.
Key exhibits
Exhibit 1
