Anta’s Rich Brand Portfolio Paves the Way for Sales and Margin Expansion

We believe that Anta's multibrand portfolio, which covers a range of consumer segments from mass-market to ultra-premium, provides an opportunity for the company to capture a growing share of the flourishing sportswear market. As China's largest homegrown sportswear brand, Anta initially established a reputation for value-for-money products targeted at the midmarket. However, the group's core Anta brand, which contributes to approximately 50% of total revenue, is now expanding its reach in lower-tiered Chinese cities as a reasonably-priced alternative to more expensive international brands such as Nike and Adidas. With economic growth and improving affordability in China, we believe Anta will benefit as consumers trade up from lower-end domestic alternatives to its products, while a portion of its customers will eventually trade up to costlier brands.