Citi: Maintains "Buy" Rating on ANTA SPORTS (02020) with Target Price of HK$107; Management Expects Sequential Improvement in Q4 Retail Sales

Citi issued a research report stating that ANTA SPORTS' (02020) other brands grew better than expected in the third quarter of 2026. Management maintained its full-year 2026 guidance and expects retail sales in the fourth quarter to improve sequentially compared with the third quarter. The bank maintained its "Buy" rating on ANTA SPORTS with a target price of HK$107. In the third quarter, retail sales of other brands grew 25% to 30% year on year, higher than the bank's original expectation of 20% to 25%. Citi noted that retail sales gradually improved from October 1 to 7 compared with the third quarter, with ANTA growing high single digits year on year, FILA growing low double digits, and other brands growing more than 20%. Management maintained its full-year 2026 guidance and expects retail sales in the fourth quarter to improve sequentially compared with the third quarter. Management said that the guidance of an operating margin of about 20% for the ANTA business has already taken into account government subsidies, which account for about 4 percentage points of the operating margin, but the amount and timing of government subsidies in the second half of the year remain uncertain.