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.

The report indicates that the company's second-quarter retail sales met expectations. Both the ANTA brand and the FILA brand recorded low single-digit growth, while other brands saw an increase of 25-30%. Although this represents a slowdown compared to the first quarter, it aligns with the broader industry trend. The company is anticipated to achieve its full-year guidance, and the brokerage has largely maintained its core net profit forecasts.

The analysis points to several factors that make ANTA's current valuation an attractive risk-reward proposition. Firstly, ANTA is a robust compound growth company, with consistent revenue and profit growth since 2014, excluding years impacted by COVID-19. Secondly, as a multi-brand operator, ANTA can mitigate the growth cycles of individual brands and shifts in consumer preference by increasing its overall market share. Finally, the current share price corresponds to a 2026 price-to-earnings ratio of just 13 times, presenting an attractive valuation that does not yet reflect the value of its stake in Amer Sports.