1、M IdeaMoat in operating a brand portfolio is broad and deep:In global terms,we think ANTA(with its associate Amer)is the only apparel and footwear brand group that is able to generate sales and profit growth through M&A constantly with a high success rate.As we highlighted here,we have expected ANTA

2、 to keep looking for value-added targets globally after Amer deleveraged financially in 2024.Besides,ANTAs strong balance sheet supports its mission.More importantly,ANTA holds comparative advantage in executing sportswear deals.Beyond ANTA,we see limited appetite or capability among large sportswea

3、r/softline companies to build brand portfolios via largescale acquisitions:This dynamic differs from the luxury industry,where a good asset could attract multiple bidders.Example ANTA has acquired Jack Wolfskin this year:Financial consolidation started from June.While JWs sales are only 300mn annual

4、ly and it is likely to be loss-making in 2025-26,we believe this brand will be much more relevant in the sportswear/outdoor market in the next 5 years,based on ANTAs track record.Raising earnings estimates slightly:We raise OP forecasts 5-7%for 2025-26 to reflect emerging brands stronger earnings an

5、d better opex management.However,we raise NP forecasts merely 1-2%,as the minority interests in Descente and Kolon will increase.We expect 11%and 15%growth in sales and adjusted NP for 2025,followed by 9%and/9%for 2026.We maintain our target P/E of 23x and roll valuation forward to 2026,raising our

6、price target 9%.See the following section 1H25 Earnings Highlights .Whats Changed ANTA Sports Products(2020.HK)FromToPrice TargetHK$117.00HK$128.00ANTA Sports|Asia PacificAcquire,Integrate,and Grow A Proven FormulaANTAs ability to create capacity to build new growth drivers merits a valuation premiu