1、EQUITY:RETAILANTA Sports Products 2020.HK 2020 HKGlobal Markets Research15 July 2025Weakening sales momentum in 2Q25Sales slowed down in 2Q25 across all brands,especially the ANTA brand;maintain BuyANTA/FILA sales slowed down in 2Q25ANTA announced its 2Q25 operating data(15 July),with sales slowdown

2、 across the board,similar to its major competitors.1)ANTA brand experienced a low-single-digit%y-y growth in 2Q25(vs.1Q25s high-single-digit%y-y growth),slower than the capital markets expectation,in our view;in 1H25,the ANTA brand delivered an MSD%sales growth(falling short of its full-year sales g

3、rowth target of high-single-digit%y-y).2)FILA brand recorded an MSD%y-y growth in 2Q25(vs.1Q25s HSD%y-y);in 1H25,the FILA brand experienced a HSD%y-y sales growth,ahead of its full-year sales growth target of MSD%(especially considering the easy base of 3Q24).3)The DESCENTE and KOLON brands delivere

4、d sales growth of 40%y-y(vs.1Q25s 60%)and 70%y-y(vs.1Q25s 100%)in 2Q25,respectively,leading to their 1H25 sales growth of 50%and 80%y-y,still on high growth tracks,in our view;also,the solid growth of outdoor/performance-focused DESCENTE/KOLON brands could imply continued brand momentum of Amer(AS U

5、S,Buy),our preferred pick in the China sportswear sector.ANTA in pursuit of more balanced growthANTA brands sales slowdown in 2Q25 is the result of:1)temporary closure(due to store upgrade/change of location)of some of its offline stores,and 2)the companys decision to maintain relatively stable disc

6、ount levels despite intensifying competition of the sportswear sector(ANTA brands online discount level deepening by 2ppt y-y),according to management.We believe the ANTA brands focus is on a balanced growth between sales and profitability,leveraging its tight control over distribution channels(high