Merrill Lynch first gave Anta sports buy rating with a target price of HK $10.

Merrill Lynch published research report, the first time to Anta sports (02020) buy rating, target price of HK $10, the main reason is that the company has the ability to integrate the middle and low market sporting goods market.

According to the report, with the increase of turnover and the improvement of gross profit margin, the composite growth rate (CAGR) of Anta from 2007 to 2010 will be predicted to reach 47%.

The report said that the middle and low level sporting goods market in the mainland grew rapidly and accounted for more than 35% of the total market share, and Anta's share in the market is gradually rising in the market.

Anta's early sale of its distribution business means that the company may buy branding in the near future, and the sale and distribution business will also help improve the working capital and reduce the gross profit margin.