Morgan Stanley: Maintains overweight rating on ANTA SPORTS (02020) after its acquisition of Jack Wolfskin, with a target price of 117 Hong Kong dollars.

Morgan Stanley released a research report stating that ANTA SPORTS (02020) will acquire Jack Wolfskin's 100% equity for $290 million. This transaction is expected to be completed by the end of the second quarter or the beginning of the third quarter. The sales guidance for Jack Wolfskin in the 2025 fiscal year is 325 million, with adjusted EBITDA of 12 million (a loss of 18 million in the first half and a profit of 30 million in the second half). The contribution of Jack Wolfskin to ANTA in 2025 depends on the timing of the transaction, and one-time costs are expected. The impact of the US tariffs on China on Jack Wolfskin's business is minimal, as the company mainly focuses on the European and Chinese markets and has no plans to expand into the US market. Based on these factors, Morgan Stanley maintains a target price of HKD 117 for ANTA SPORTS and a "buy" rating.