China's ANTA Sports slips after Q2 sales, brokers cut TP

361 Degrees International

19/07/2023 04:49

** Shares of China's home grown sportswear group ANTA Sports
Products Ltd  2020.HK  slip as much as 4.1% to HK$81
    ** On track for their biggest one-day pct fall since July 6,
if losses hold
    ** Fujian-based company says Q2 retail sales value of ANTA
branded products recorded high-single digit positive growth as
compared to a year ago period, FILA branded products posted
high-teens positive growth, while all other branded products
grew 70%-75%
    ** Nomura reaffirms "buy" rating but trims target price to
HK$115.20 from HK$126.10; says 2Q23 operating results in line
but unclear recovery track ahead with the sector's tepid sales
momentum and deeper discount levels to weigh on ANTA's 2H23F
performance 
    ** Daiwa reiterates "buy" saying it is upbeat on ANTA's
market-share gain potential with the multi-brand portfolio but
cut TP to HK$115 from HK$124 to factor in a softer-than-expected
consumer sentiment and higher marketing expenses
    ** Shares of smaller rivals Li Ning  2331.HK , Xtep
 1368.HK , Topsports  6110.HK  and 361 Degrees  1361.HK  fall
1.6% to 3.8% 
    ** Hang Seng Commerce & Industry Index  .HSNC  falls 1.6%,
Hang Seng Consumption Index  .HSCGSI  drops 1.8% and Hang Seng
Index  .HSI  declines 1.3% 
    ** As of last close, ANTA shares down 17.4% this year

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))