ANTA Sports (SEHK:2020): Evaluating Valuation After High-Profile Paris Fashion Launch and Global Brand Push

ANTA Sports Products (SEHK:2020) made waves this week by unveiling its ANTAZERO X KRIS VAN ASSCHE collection at Dover Street Market Paris. This move signals a strategic push into the global fashion landscape through a unique blend of sustainability and high-profile collaboration.

See our latest analysis for ANTA Sports Products.

The global collaboration buzz appears to have rekindled investor enthusiasm for ANTA Sports, with a 1.95% one-day share price return and 3.47% gain over the past week helping to offset recent weakness. While the stock weathered a 19.15% decline over the past three months, its total shareholder return for the year remains a solid 11.7% as the brand’s international moves suggest that fresh long-term momentum may be building.

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With such a highly anticipated collection launch and improving global narrative, is ANTA Sports now trading at a discount for future growth, or has the recent rally already priced in the opportunity for investors?

Most Popular Narrative: 26.8% Undervalued

ANTA Sports Products’ last close of HK$83.6 sits well below the narrative's fair value estimate of HK$114.14, suggesting a strong disconnect between current market price and projected fundamentals. The difference is driven by confidence in both the global expansion strategy and multi-year growth initiatives, according to the most widely followed narrative.

Strategic focus on multi-brand management and globalization efforts, including replicating success in China to international markets, aims to expand market reach and revenue streams outside of Greater China. This positively influences overall company revenue.

Read the complete narrative.

Curious how bold international ambitions and high double-digit growth projections come together for such a decisive valuation call? The expectations for margin evolution, share repurchases, and ambitious global sales targets are just the start. What specific assumptions justify this fair value? And what if one of them breaks down? Unlock the full story to see how these forecasts could reshape your view on ANTA Sports.

Result: Fair Value of $114.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heightened competition and rising operational costs could diminish ANTA Sports’ growth prospects. These factors could potentially challenge the upbeat valuation outlook if left unchecked.

Find out about the key risks to this ANTA Sports Products narrative.

Another View: The Multiples Tell a Different Story

While the fair value narrative suggests ANTA Sports shares are undervalued, the price-to-earnings ratio tells a more cautious tale. At 14.3x earnings, the company trades above the fair ratio of 12.6x. It is also more expensive than the Hong Kong Luxury industry’s 10x average, signaling some valuation risk if market expectations shift.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own ANTA Sports Products Narrative

If you see this story differently, or want to dive into the fundamentals yourself, you can craft a fresh perspective in just minutes. Do it your way

A great starting point for your ANTA Sports Products research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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