Anta led the consortium that acquired Amer for US$5.2 billion in 2019, diversifying Anta’s product range, which primarily features sports apparel and trainers.
“Anta’s 45% representation on Amer’s expanded board raises the possibility that China will continue to drive revenue growth for its subsidiaries after going public,” said Katherine Lim, an analyst at Bloomberg Intelligence. Ta.
“Amer’s steady increase in China sales could threaten Nike and Adidas’ regional market share.”
Additionally, Amer’s IPO comes at a time when investment banks such as Citigroup say Adachi could face headwinds from increased rivalry and marketing costs related to this year’s Paris Olympics. Citigroup said Anta’s profit margins will face challenges as peers from Li Ning to X-Step International Holding Ltd. rush to clear out inventory built up by China’s weak consumer spending.
Amel may be crucial for Anta to survive this tough environment, as Anta’s products occupy a niche market that does not directly compete with the likes of Li Ning. The company, which recorded a compound annual growth rate of 20.4% from 2020 to 2024, highlighted the growth potential of the Chinese market in its listing prospectus.
Everbright analyst Tan Jiarui said Amer aims to achieve sales worth around 10 billion yuan (US$1.4 billion) in China by 2025, with the Chinese market and direct sales as the main driver of business growth. , will focus on apparel and shoes. Shanghai.
Hong Kong stocks record quarterly losses due to weak Chinese economic data and bankers’ pessimism
Hong Kong stocks record quarterly losses due to weak Chinese economic data and bankers’ pessimism
According to data provided by Anta, Amer posted a net loss of USD 113.9 million in the first nine months of 2023, mainly due to goodwill impairment, but sales rose 30% year-on-year to USD 3.0 billion. The total amount was 50 million USD.
Anta shares fell 0.2% to HK$70.15 in the Hong Kong market on Friday, capping a 7.4% decline in the first week of the new year. Stock prices fell 26% in 2023, while peer Li Ning fell 69% and the Hang Seng Index fell 14%.
The Chinese sportswear maker has an excellent track record of integrating acquired foreign brands into the domestic market and increasing market share. Italian premium sportswear brand Fila, acquired in 2009, is now a pillar of the company’s business, contributing 40% of its sales in 2022. Fila’s market share in China rose from 1% in 2013 to 7.5% last year. According to Everbright.
Anta triggers stock offering, loses $2.8 billion in market capitalization
Anta triggers stock offering, loses $2.8 billion in market capitalization
“Through the acquisition of foreign brands, Anta can increase its influence in the global market,” Everbright’s Tan said.
“We expect the overall scale to grow another notch as Anta improves its brand image and builds a more complete product lineup, channels and supply chain.”