CLSA has released a research report maintaining its Outperform rating on ANTA Sports (02020), with a target price of HK$110, and has included the company among its top picks. The brokerage believes the company has a global footprint, combined with disciplined execution capabilities and a solid balance sheet.

The brokerage expects ANTA Sports to benefit from improved store productivity, outperformance of its outdoor brands, a potential turnaround to profitability for Jack Wolfskin's China business next year, and higher net profit from Amer Sports, projecting a compound annual growth rate of 7% for sales and 12% for adjusted net profit over the fiscal years 2026 to 2028.

The report notes that holding a 29% stake in PUMA and owning Jack Wolfskin can broaden ANTA Sports' addressable market in professional sports and mass outdoor segments; productivity gains, store format upgrades, and online growth are expected to offset store optimization efforts.

Demand slowed in the third quarter of this year compared with the first half, with sales improving in August and September after extreme weather affected July; Golden Week and Double Eleven will be key to the company meeting its fiscal 2026 performance guidance.

Additionally, international peers' destocking has intensified online discounts, but ANTA Sports maintains strict discount control and expects the competitive environment to return to rationality in 2027.