CICC: Maintaining the Anta Sports (02020) “Outperform the Industry” rating target price of HK$110.91

The Zhitong Finance App learned that CICC released a research report stating that it will keep Anta Sports (02020)'s “outperforming the industry” rating and target price of HK$110.91 unchanged, corresponding to a price-earnings ratio of 17 times in 2026 and 2027, with room for 55% increase from the current stock price. Anta Group has completed a transaction to acquire 29.06% of PUMA SE (PUMA) shares from Artemis SAS, the Pinault family investment company, for 1,506 billion euros, and has officially become PUMA's largest shareholder. The bank believes that with the power of the Anta Group, Puma is expected to accelerate the completion of the strategic transformation, while Puma's broad influence around the world will provide important support to Anta Group's globalization strategy.

CICC's main views are as follows:

Puma is expected to accelerate the increase in profit levels with the power of Anta

According to Puma's management guidelines, revenue is expected to fall to the middle single digits in 2026, with an EBIT loss of 50 million to 150 million euros. The consideration for this transaction corresponds to approximately 0.8 times the corporate value multiple (EV/sales) of the expected revenue in 2027. The bank believes that with the power of Anta, Puma is expected to accelerate the increase in profit levels.

In addition to Puma, the top four global sports brands have averaged 7.3% net profit margins over the past 5 years. The bank believes that after improving Anta's management capabilities, Puma is also expected to reach this level. Based on this calculation, this transaction corresponds to a price-earnings ratio of about 10 times. Even if Puma's net profit margin only recovers to 3.7%, corresponding to a price-earnings ratio of about 20 times, the bank believes it is reasonable for a global brand like Puma.

Puma has distinctive brand characteristics and global competition resources

According to Euromonitor, in 2025, Puma will still be the third-largest sports brand in the world after Nike and Adidas in terms of market share. Puma has the world's leading influence and tournament resources in sports such as soccer and racing, and has a clear differentiating advantage among global sports brands.

Anta Group has accumulated deep experience in operating global brands

Since the acquisition of Amalfin Sports in 2019, Yamafen Sports' revenue grew from US$2.45 billion in 2020 to US$6.57 billion in 2025, and adjusted net profit turned a loss of US$440 million in 2025. Under the operation of the Anta Group, Amafen Sports successfully transformed into DTC, and all of its brands performed well. The bank believes this reflects Anta Group's multi-brand operation and retail management capabilities.

The bank believes that, empowered by Anta Group's strong brand operation capabilities and retail management capabilities, Puma can complete strategic transformation faster. At the same time, Puma's broad influence around the world will provide important support to Anta Group's globalization strategy.

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