UBS: Global Brand Awareness and Purchase Intent (ONON.US) have huge potential for growth

The Zhitong Finance App learned that UBS released a research report reaffirming ONON.US (ONON.US)'s “buy” rating, with a target price of 85 US dollars. UBS believes that Onpa's continued focus on innovation, performance, athletes, sports, direct sales models, and maintaining a high-end full-price brand image will drive it to achieve industry-leading sales and profit growth. The bank predicts that Ampang's sales, adjusted EBITDA, and earnings per share will reach 20%, 24%, and 20% compound annual growth rates over the next five years, respectively, and expects the strong growth momentum to continue. Such growth will make Onpa one of the fastest-growing sportswear brands in the world. UBS also believes that this will surprise the market and drive up its price-earnings ratio.

The latest survey data has boosted UBS's confidence: the bank believes UBS Evidence Lab's 11th annual global sportswear survey shows that there is huge potential for growth. The main reason is that the company's brand awareness still has a lot of room to improve, and current trends indicate that it is growing well. According to the survey, the global recognition of the Onpao brand is only 15%. This level is far lower than brands such as Nike (91%), Under Armour (53%), and Lululemon (36%). Furthermore, the brand awareness of Pang Pao increased from 13% last year to 15% this year. UBS believes that the increase in brand awareness is a key reason why Ampang is expected to gain more market share in 2026.

Pang's global purchasing intentions and net recommendation value are solid: not only is the company's brand awareness growing, but the company is turning many consumers who have heard of the brand into actual customers. Ampang's global intention to buy sneakers increased 34% year over year, and global sportswear purchase intentions soared by 122%. Pang's global net recommendation value increased from 25% last year to 39% this year, and currently ranks sixth in the world. This data shows that running high can win the favor of consumers in a repeatable way and establish lasting connections with them.

Four ways to become the world's top sportswear brand: UBS's exchanges with investors suggest that the market is skeptical about whether Onpao can achieve its vision of becoming the world's top sportswear brand. However, the survey showed that Ampang was successful in the following four areas:

1. Global consumers increasingly recognize Onpao's high-quality products, and the proportion of respondents who agree with Onpao's high-quality products jumped from 31% last year to 47% this year.

2. Onpao's recognition as a well-known brand continues to grow. About 40% of global consumers surveyed believe that Ampo is a well-known brand, up from 31% a year ago.

3. Onpao's recognition as a sports brand continues to grow. The share of global consumers who think running high is suitable for sports rose to 46% from 42% last year.

4. The interviewees continued to regard Ampang as an innovative brand. 44% of global consumers think that Onpa is an innovative brand. Despite a year-on-year decline of 200 basis points, it still ranks third.

The brand is still lacking in one area, but UBS sees an opportunity: the survey showed that the proportion of global consumers who think that Onpao products are easy to find in physical stores or online fell to 25% from 27% last year. Running high and running's 25% score is one of the lowest levels of any brand. The bank believes that this provides an attractive opportunity for Ampang to expand its direct sales channel network.