1、Amer Sports IncANCHOR REPORTGlobal Markets Research23 September 2024A rare growth story amid sportswear uncertaintyAmer Sports has established solid leadership in the emerging outdoor sports and activities segment with a diversified brand portfolio.The company has nurtured a distinct competitive edg

2、e in the China market;its Arcteryx brand is not only considered a premium functional/performance brand by its core Chinese customers,but also a“statement”brand that reflects social status and its buyers differentiated tastes,in our view.We project this will lead to more sustainable demand for Arcter

3、yx than other performance-focused competitors.Fueled by Arcteryxs sales growth,we estimate Amer will register an attractive sales CAGR of 14%over FY23-26F;we also expect the company to gradually improve its gross and operating margins over the next three years,leading to a strong FY23-26F adjusted E

4、BITDA CAGR of 22%.We favor Amer Sports and believe that it provides a rare growth opportunity at a time when the sportswear sector is facing uncertainties;we initiate coverage of Amer Sports with a Buy rating and an SOTP-based target price of USD18.60.Potential share price catalysts include:(1)conti

5、nued momentum of the Arcteryx brand globally in 3Q24F and(2)better-than-expected revamp of Salomon and Wilson brands.Research AnalystsChina Consumer RelatedJizhou Dong,CFA-NIHK+852 2252 1554Riley Jin-NIHK+852 2252 6220See Appendix A-1 for analyst certification,important disclosures and the status of

6、 non-US analysts.Production Complete:2024-09-23 14:02 UTCEQUITY:GENERAL CONSUMERAmer Sports Inc AS.N AS USGlobal Markets Research23 September 2024A rare growth story amid sportswear uncertaintySolid growth driven by performance products and China consumers penchant for“statement”brands;initiate at B