Guotai Junan (Hongkong) ancient Qiao Art

Anta (2020 HK): orders will increase by 25% in the fourth quarter of 10 years.

Orders will increase by 25% in the fourth quarter of 10 years. Anta announced the growth of orders for 4Q10 orders held in May. Due to strong brand reputation and differentiated products, the order value increased by more than 25% over the same period last year, while the average unit price of footwear and clothing increased by more than 5%. In addition to the better product structure in the fourth quarter, the average unit price growth is also attributed to windbreaks, waterproofing and antifouling materials, as well as the application of thermal insulation technology in winter (including runtime thermostat Outlast and 3M material Thinsulate), which increases the functionality of the product to meet customer's winter needs. The company is also expected to launch a large-scale promotional campaign in the fourth quarter to promote the authorized products of the Olympic Committee.

Demand continues to improve. 10, 4 quarter 25% orders growth is in line with our expectations. The growth rate of orders is obviously faster than that of 18%, 16% and 18% from the first to the three quarter. The average unit price of clothing and footwear has increased by more than 5%, while the volume growth is still dominant. Our trend from China and XTEP can also see that the growth rate of 4Q10 orders is accelerating. We believe that retail demand is still strong and dealers are optimistic about the industry. We maintain the forecast of Anta's annual sales growth of 21.2%.

Maintain the company's 10-12 year profit forecast and target price. Our forecast of earnings per share for 10-12 years is 0.583 yuan, 0.680 yuan and 0.793 yuan respectively. In view of the company's good fundamentals, the target price and collection rating of HK $13.9 are maintained.