Citigroup released a research report stating that ANTA SPORTS (02020) announced this morning (27th) the acquisition of a 29% stake in sportswear brand Puma for €1.5 billion, which will make it the largest shareholder in Puma upon completion of the transaction. The bank believes that, as the market had already anticipated this acquisition, it maintains a "Buy" rating on ANTA with a target price of HK$107. The report notes that the acquisition price is equivalent to €35 per share, approximately 0.7 times Puma's forecasted 2025 price-to-sales ratio. ANTA's management stated during a conference call that there are currently no plans to take Puma private at this stage, and the acquisition will be fully funded by internal resources, which will not affect the company's dividend distribution and shareholder cash returns. Citigroup views this as alleviating market concerns that ANTA might conduct an equity financing or pursue a full merger with Puma. The bank's analysis suggests that ANTA has demonstrated exceptional integration and operational empowerment capabilities following its previous acquisitions of FILA and Amer Sports, expressing confidence in its ability to assist Puma in expanding its business, particularly in the Chinese market. Management anticipates significant synergies between the two parties in areas such as branding, supply chain, distribution channels, and logistics infrastructure. The transaction is still subject to regulatory approvals and shareholder meeting approval. Citigroup emphasized that, with the Puma acquisition and the company's cautious outlook for 2026 having been fully communicated to the market, short-term negative factors have largely been priced in. The bank's sector stock preference is ranked as ANTA > Topsports (06110), with both maintaining a "Buy" rating.