China Galaxy Securities: Maintains "buy" rating for ANTA SPORTS (02020) as acquisition of Puma equity enhances globalization strategy.

China Galaxy Securities issued a research report stating that it maintains an "recommended" rating on ANTA SPORTS (02020). The company announced its intention to acquire 29.06% of the equity in PUMASE. Upon completion of the transaction, the company will become the largest shareholder of PUMA. This effectively strengthens the company's brand layout in the mid-to-high-end professional sports field, improves its multi-brand matrix, and is expected to build a new growth pole to support the company's future high-quality development through global resource integration and synergies. Key points from China Galaxy Securities include: The company announced its intention to acquire 29.06% of the equity in PUMASE. On January 27, 2026, the company announced an agreement with Groupe Artmis to acquire 29.06% of PUMASE for 1.5 billion euros in cash consideration. After the transaction is completed, the company will become the single largest shareholder of PUMA. The company plans to participate in governance through the appointment of representatives to the supervisory board, respecting PUMA's strong brand heritage and independent operation, and empowering its medium to long-term development through strategic synergies. This acquisition is another key step in deepening the company's global layout following Amer Sports and Jack Wolfskin, effectively strengthening the company's brand layout in the mid-to-high-end professional sports field, improving its multi-brand matrix, and is expected to build a new growth pole to support the company's future high-quality development through global resource integration and synergies. PUMA is a globally renowned sports leader, currently in a strategic reset period. PUMA is a global leading sports brand headquartered in Germany, mainly engaged in the design, development, sales, and marketing of footwear, clothing, and accessories. The company has now transitioned from a high-growth period to a stable development stage, launching the "Reset" plan in 2025 to optimize distribution channels, repurchase inventory, and reduce operating costs, resulting in revenue of 5.974 billion euros for the first three quarters of 2025, an 8.5% decrease year-on-year, and a net loss of 308 million euros. Footwear products are the most resilient and dominant revenue growth engine for PUMA, with a revenue share of 53% in 2024, covering professional sports shoes such as football, running, and basketball shoes. The company's primary distribution channel is wholesale, but through the "Reset" strategy, the company actively optimizes the wholesale channel and promotes the development of DTC channels. The company enhances its global footprint and is expected to replicate its successful brand acquisition experience. PUMA has a strong channel foundation and brand assets in the EMEA and Americas markets, complementing the company's main brand ANTA, which focuses on the Chinese market. In terms of brand dimension, PUMA's professional football/running categories effectively fill the ecological gap between ANTA's main brand (mass professional) and Amer Sports and FILA, enabling the company to comprehensively cover global consumer demands from mass to mid-to-high-end, from fashion to hardcore outdoor, further enhancing its global competitiveness. The company's excellent retail operation capabilities and efficient supply chain integration advantages verified in previous brand acquisitions are expected to empower PUMA's business recovery in the Greater China region and unlock growth potential. Risk warnings: risks of acquisition integration progress and synergies falling short of expectations; risks of PUMA's brand "Reset" strategy not meeting expectations; risks of global macroeconomic fluctuations and weak consumer demand; risks of exchange rate fluctuations.