Jefferies Research raised its target price for Anta Sports Products (02020) to HK$23.2 from HK$19.8, and maintained its "hold" rating.
The research house revised up its 2017 revenue by 3.9% to RMB15.7bn (+17.9% yoy), driven mainly by Anta Kids, Fila, and ecommerce. It expects GP margin to increase slightly by 0.3ppt yoy to 48.7% in 2017 due to a higher proportion of Fila.
Jefferies also expects marketing and promotion expenses to reach 11.4% of sales in 2017 versus 11.4% in 2016. In a nutshell, the research house lifted its 2017 net profit by 2.8% to RMB2.8bn (+15.6% yoy), which suggests net margin of 17.5% in 2017.