1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Investment Research at:https:/ Find o

2、ut moreHSBC12th Annual China ConferenceShenzhen|1-2 September 2025 1H results largely in line with our expectations,but reported net profit was 4%better due to higher non-operating income Raise 2025/26e net profit by 5%/6%on higher non-operating income;management still targets 50%dividend payout Rai

3、se target price by 2%to HKD126.30(from HKD123.80),implying a 19.9x 2026e PE multiple;maintain Buy In-line results in 1H25:We published our 1H25 results preview report on 25 July(see Expect resilient results in 1H25e supported by its multi-brand strategy).Antas interim results published today were la

4、rgely in line with our estimates,but its reported net profit of RMB7,031m was 4%ahead of our estimate,thanks to higher-than-expected other income,net finance income,and the contribution from its associate Amer Sports(AS US,TP USD50.00,Buy,CMP USD40.71).It declared an interim dividend of HKD1.37 per

5、share,representing a payout ratio of 50.2%(1H24:50.1%).Raise net profit estimates by 5-6%:In July-August,management saw a weakening sales trend.Management lowered the 2025 retail sell-through growth target for Anta brand to mid-single-digit(MSD)from high-single-digit(HSD)before,maintained the MSD gr

6、owth target for Fila brand,and raised the growth target for other brands from 30%+to 40%+.We slightly lower our 2025e revenue by 1%after considering slower growth from Anta brand and lower revenue contribution from its newly acquired Jack Wolfskin brand.Our 2025e operating profit and net profit are