ANTA SPORTS (02020) rose more than 4%. At the time of writing, the stock was up 4.44% to HK$88.3, with a turnover of HK$476 million. The movement follows the company's recent announcement of its plan to acquire a 29.06% stake in PUMA for approximately €1.5 billion, equivalent to RMB 12.28 billion. Upon completion, ANTA would become PUMA's largest shareholder. Citi noted that since the acquisition was announced, investor questions have largely centered on whether the deal would help or hinder ANTA's domestic operations. Drawing on ANTA's history of acquisitions and discussions with Chinese retailers, the bank expects that, beyond potential rapid growth in brand revenue from restructuring PUMA's China business, ANTA may also consolidate PUMA's retail and distribution operations in China. Even with only a 29% stake in PUMA, this could deliver surprising upside potential. Citi stated that given ANTA's strong retail expertise in China, PUMA's distribution and retail business in the country is expected to grow rapidly. The bank believes investors may be underestimating the positive impact of PUMA's China operations on ANTA after the transaction closes.