Macquarie slightly raises ANTA's target price to 131 yuan, and Arc'teryx sales have rebounded

Macquarie's research report indicates that Anta (02020.HK) subsidiary Amer Sports (AS.US) management expects revenue to grow in the mid-teens by 2026, as the company has established a solid foundation and is experiencing comprehensive growth across various regions.

The brand Arc'teryx recently sparked controversy for holding a fireworks display in the Himalayas, which was criticized for damaging the ecological environment. Management stated that sales performance in the early fourth quarter was relatively weak, but there has been a rebound as temperatures have dropped. The management's fourth-quarter guidance did not reflect any negative factors, and the firm believes this may be due to satisfactory performance during the Golden Week holiday and the Double Eleven promotion.

The report mentioned that overall revenue in the Greater China region grew by 47% year-on-year in the third quarter, with momentum continuing into the fourth quarter. After years of optimizing its store network, the company plans to net add stores in China; the outdoor performance and ball sports business also showed strong growth in the Chinese market.

The firm raised its earnings per share forecasts for Anta for 2025 to 2027 by 0.8%, 0.4%, and 0.4%, respectively, with the target price slightly increased from 130 yuan to 131 yuan, maintaining an "outperform" rating