Multi-brand advantages fully leveraged – ANTA Sports delivered solid 1H26 growth across all brands, with total revenue rising 12.9% YoY to RMB43.5bn. By segment, ANTA, FILA, and other brands (led by DESCENTE and KOLON SPORT) grew 4.8%, 6.1%, and 44.2% YoY, respectively, with the "all other brands" portfolio remaining the primary growth driver. Profitability also improved, driving GPM and OPM up by 50bps and 7bps, both ahead of expectations. The company declared an interim dividend of HK$1.51 per share.

Professional sports brands speed up – The "all other brands" segment, encompassing DESCENTE, KOLON SPORT, and Maia Active, recorded a 44.2% surge in 1H, effectively capturing the premium outdoor lifestyle trend. This segment is becoming an increasingly significant contributor to overall results, accounting for 24.6% of total revenue as of end‑June 2025, up from 19.2% in the comparable prior‑year period. KOLON SPORT's POS count reached 212 at period end, already within the full‑year target range of 210‑220, while DESCENTE operated 261 stores and will continue to add new locations to reach its full‑year target of 270‑280, providing incremental revenue upside.

FILA margin improves as pricing power recovers – FILA, contributing 34.6% of total revenue, posted 6.1% YoY revenue growth and 9.7% YoY operating profit growth, with OPM expanding by 100bps, supported by easing discount pressure and recovering pricing power. In fact, FILA was the only segment to register margin improvement during the period.

Our view:

The company's overall performance continued to outperform sportswear peers, demonstrating the resilience of its multi‑brand strategy despite a challenging retail environment, including adverse weather conditions. Looking ahead, with positive sales momentum and continued store expansion in the professional sports segment, both topline and bottom line are expected to benefit, as this segment enjoys the highest GPM and OPM at 73.1% and 33.1%, respectively, compared with the group averages of 63.9% and 27.2%. The stock currently trades at 12.7x FY26E P/E. (Amelia Deng)