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ANTA SPORTS (2020 HK) has signed an agreement with Puma's controlling shareholder to acquire a 29.06% stake in Puma, amounting to a total consideration of €1.5055 billion. This acquisition aims to explore opportunities for collaboration with the Puma team, strategically reposition the Puma brand, enhance its value, and fully unlock Puma's growth potential.
ANTA announced that it has signed an agreement with Puma's controlling shareholder to acquire 43,014,760 shares of Puma, representing a 29.06% stake, at a price of €35 per share, for a total consideration of €1.5055 billion (approximately RMB 12.2776 billion), making ANTA the largest shareholder of Puma. The acquisition will be funded using the Group's existing cash reserves, with no financing required.
The company believes that Puma possesses strong brand value and heritage, which are rare and invaluable assets. Brand value cannot be measured solely by short-term profitability or the current acquisition price when assessing its future development potential. The Chinese market is one of the world's largest sporting goods markets, yet Puma's revenue contribution from China is less than 7%, indicating significant untapped potential. Leveraging ANTA Group's deep understanding of Chinese consumers and its full-channel, end-to-end operational capabilities, it is well-positioned to share its successful experience in the Chinese market with Puma, providing robust strategic support for Puma's development in China and helping it achieve above-average industry growth in the region.
Over the past decade, ANTA Group has amply demonstrated its strong organizational capabilities. Brands such as FILA, Arc'teryx, Salomon, Descente Greater China, and Kolon have all grown from relative obscurity into brands generating tens of billions, or even hundreds of billions, in revenue under ANTA's management. Internally, ANTA Group has already formulated specific plans addressing Puma's current stage losses and product line issues.
ANTA Group has a clear understanding of the Puma brand and does not underestimate the operational challenges ahead. We believe ANTA Group can play a positive and constructive role in Puma's future development within China. Through this acquisition, while ANTA Group becomes Puma's largest shareholder, it will not be the controlling shareholder. ANTA is aware of its own strengths and the boundaries for leveraging them, and does not believe that brand revitalization can only be achieved through a complete takeover.
The key to a successful partnership lies in both parties building deep trust, forming a strong alliance, and engaging in profound collaboration, while maintaining operational independence and focusing on their respective core responsibilities. Post-transaction, ANTA Group will seek to appoint suitable representatives to work alongside Puma's management team, providing professional support and advice to facilitate its development.
Risk Warning: The brand transformation effects for ANTA and FILA may fall short of expectations; industry competition may intensify; macroeconomic conditions may deteriorate.