Company Coverage
Anta Sports (2020 HK): 1H26: Solid Results With Operating Margin A Beat; Confident In Achieving Full-Year Targets
BUY (Maintained)
Current price:
Target price:
Upside:
HK$14.35
HK$19.88
+38.5%
Analyst
Analyst
Highlights
- 1H26 core net profit fell 9.7% yoy, better than our low-teens drop expectation. DPS declined at a narrower 8.0% yoy to HK$0.23/share.
- With an improved market outlook and stronger sales pipeline in 2H26, we expect positive sales growth in 2H26. First-tier exposure will be the profit lever, and margin stabilisation is becoming more visible. Investment will stay proactive (target Rmb80b-100b).
Maintain BUY with an unchanged target price of HK$19.88. COLI remains our top pick for the China property sector.
Analysis
- 1H26 better than expected. Core net profit declined 9.7% yoy to Rmb7.93b, vs market expectation of a low-teens yoy drop, equivalent to 67% of our annual estimate. Key drivers include: a) 17.3% yoy growth in revenue, driven by property development (+17.8% yoy), with commercial operations revenue stable (+0.9% yoy); b) a 1.0ppt decline in SG&A ration; and c) a 6.8% yoy decline in finance costs. Margin compression continued to be the key drag, with gross profit margin dropping 1.3ppt yoy to 16.1%. Net gearing ratio fell to 27.2%, down 1.2ppt yoy and 7.1ppt hoh. Interim DPS is HK$0.23, down 8.0% yoy.
Highlights
- 1H26 core net profit fell 9.7% yoy, better than our low-teens drop expectation. DPS declined at a narrower 8.0% yoy to HK$0.23/share.
- With an improved market outlook and stronger sales pipeline in 2H26, we expect positive sales growth in 2H26. First-tier exposure will be the profit lever, and margin stabilisation is becoming more visible. Investment will stay proactive (target Rmb80b-100b).
Maintain BUY with an unchanged target price of HK$19.88. COLI remains our top pick for the China property sector.
Analysis
- 1H26 better than expected. Core net profit declined 9.7% yoy to Rmb7.93b, vs market expectation of a low-teens yoy drop, equivalent to 67% of our annual estimate. Key drivers include: a) 17.3% yoy growth in revenue, driven by property development (+17.8% yoy), with commercial operations revenue stable (+0.9% yoy); b) a 1.0ppt decline in SG&A ration; and c) a 6.8% yoy decline in finance costs. Margin compression continued to be the key drag, with gross profit margin dropping 1.3ppt yoy to 16.1%. Net gearing ratio fell to 27.2%, down 1.2ppt yoy and 7.1ppt hoh. Interim DPS is HK$0.23, down 8.0% yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
HK$14.35
HK$19.88
+38.5%
Analyst
Analyst
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