Anta Sports Products (2020.HK): APAC Focus: A proven multi-brand engine meets global optionality

While the market is concerned about weak consumption in China, we believe it underestimates Anta's earnings resilience, underpinned by its multi-brand portfolio where each brand contributes incremental growth at its own lifecycle stage. This makes Anta's earnings structurally more resilient than those of single-brand peers. We also think Anta's overseas expansion – through Amer's global footprint, the ANTA brand's international rollout and the added synergies Puma's global network could bring – is underappreciated. At an 11x 27E PE, with 12% NI CAGR over 2026–28E and a 4% dividend yield, we believe the stock is undervalued. We estimate that, within five years, the sportswear market across emerging markets will exceed the current size of China's market. According to UBS Evidence Lab survey data, the ANTA brand already scores well on consumer perception of affordability in Southeast Asia. We forecast the ANTA brand's overseas sales contribution to expand from 2% in 2025 to over 10% over