＜Research＞Citi Downgrades ANTA SPORTS (02020.HK) With Lower TP for Sportswears' More Cautious Outlook

　　Citi Research released a report predicting that China's sportswear sector will achieve an LSD-MSD growth over 2024-26, lower than the HSD growth from 2021-23, with limited headroom for increasing average selling prices (ASPs) as the favorable impact of shifting to a direct-to-consumer model fades, growth of high-ASP discretionary apparels slows down, and competition intensifies amid an unfavorable macro-environment.

　　Considering that ANTA SPORTS (02020.HK) +2.300 (+3.397%) Short selling $52.18M; Ratio 20.671% management plans to reduce promotional spending to preserve its full-year earnings performance, which will in turn weaken its long-term momentum, Citi Research trimmed the 2025-26 sales growth forecast to HSD, lower than the DD growth generally expected by the market, and reduced the TP to $75 from $87.5, also lower than the market's consensus expectation. It downgraded ANTA SPORTS from Buy to Neutral, reflecting the above factors and the slower growth of the Fila brand. The TP for LI NING (02331.HK) +0.600 (+4.261%) Short selling $19.73M; Ratio 15.364% and TOPSPORTS (06110.HK) +0.030 (+0.867%) Short selling $624.02K; Ratio 1.347% were also reduced by the broker as follows:

　　Related NewsJPM Slightly Cuts LI NING (02331.HK) TP to $13.8 as Challenges Continue

　　Shares | Investment Ratings | TPs (HK$)

　　ANTA SPORTS (02020.HK) +2.300 (+3.397%) Short selling $52.18M; Ratio 20.671% | Buy -> Neutral | $87.5 -> $75

　　LI NING (02331.HK) +0.600 (+4.261%) Short selling $19.73M; Ratio 15.364% | Buy | $32.7 -> $19.63

　　TOPSPORTS (06110.HK) +0.030 (+0.867%) Short selling $624.02K; Ratio 1.347% | Buy | $7.38 -> $4.88

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-31 12:25.)

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