Citigroup: Keeping a close watch on ANTA SPORTS (02020) and LI NING (02331) for potential catalysts in the next 30 days, optimistic about capturing market share from Nike in China.

Citigroup issued a research report stating that they have decided to close their short-term views on ANTA SPORTS (02020) and LI NING (02331), and instead open a 30-day positive catalyst observation. The main catalyst is that Nike's market share in China may be taken over by ANTA and LI NING, bringing positive market sentiment. According to an announcement by TOPSPORTS (06110) and the Nike website, Nike will terminate most of its online distribution business with Chinese retailers starting in January 2027, shifting towards an online DTC (direct-to-consumer) strategy. This is expected to result in the loss of its future market share in China and have a positive impact on local Chinese brands and competitors. The bank reiterated its relative preference order for Chinese sportswear stocks, namely ANTA, LI NING, and TOPSPORTS. ANTA and LI NING are also among the top 10 large Chinese consumer stocks with attractive valuations recommended by the bank. The bank maintains a "buy" rating for ANTA and LI NING with target prices of 108.8 HK dollars and 22.8 HK dollars respectively.