Bank of America Securities has issued a research report reiterating its 'Buy' rating on ANTA SPORTS (02020), with a target price of HK$102.5, following the company's second-quarter retail sales performance which met expectations.

The report indicates that both the ANTA brand and the FILA brand recorded low single-digit growth for the quarter, while other brands saw growth of 25-30%. Although this represents a deceleration compared to the first quarter, it aligns with the broader industry trend. The company is anticipated to achieve its full-year guidance.

The brokerage has largely maintained its core net profit forecasts. It views the current valuation of ANTA SPORTS as offering an attractive risk-reward profile for several reasons. Firstly, ANTA is a robust compound growth company, having delivered consistent revenue and profit growth every year since 2014, excluding the COVID-affected period. Secondly, as a multi-brand operator, it can mitigate the impact of individual brand growth cycles and shifts in consumer preferences through market share gains. Finally, the current share price implies an attractive valuation of only 13 times estimated 2026 earnings, which does not yet reflect the value of its stake in Amer Sports.