BOCI: Puma May Take Longer to Deliver Significant Profits for ANTA SPORTS (02020), More M&A Likely Ahead

Stock News01-29

BOCI released a research report stating that ANTA SPORTS (02020) announced the acquisition of a 29.06% stake in the German sportswear brand Puma for €1.5 billion. While the market had largely anticipated this deal, the bank believes the actual consideration paid is more favorable than market expectations. However, investors may still adopt a cautious stance towards the transaction itself and its structure. Overall, the bank expects the deal to have a limited impact on its adjusted 2026 and 2027 profit forecasts and does not alter the bank's investment thesis of a "Buy" rating for ANTA; it maintains a target price of HK$95.4. The bank anticipates that Puma's business turnaround path will differ from that of Amer Sports or Fila, suggesting that it may take a longer time for Puma to make a significant contribution to ANTA's profits. Concurrently, the bank believes ANTA's global expansion plans are unlikely to stop with this transaction, forecasting more merger and acquisition activities in the future.

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