德意志银行-xx行业研究-china sports wear 2q17 likely a major boost for anta；s wholesalers,upgrading anta to buy-20170706-deutschebank.pdfVIP

Deutsche Bank Markets Research Asia Industry Date China China Sportswear 6 July 2017 Consumer Recommendation Change John Chou Anne Ling 2Q17 likely a major boost for Anta’s Research Analyst Research Analyst (+852) 2203 6196 (+852 ) 2203 6177 wholesalers, upgrading Anta to Buy john.chou@ anne.ling@ Tactically shifting preference to Anta but still confident of Li Ning turnaround Key Changes In February 2017 we downgraded Anta to Hold on the potentially deteriorating Company Target Price Rating health of its wholesalers. However, we believe Li Ning’s inventory shortage in 2020.HK 25.00 to Hold to Buy 2Q17 gave Anta’s wholesalers an extremely successful summer peak season, 29.50(HKD) leading to better 2018 wholesale orders for Anta. This, on top of a stronger 2331.HK 5.50 to 6.80(HKD) - outlook at Fila, has triggered our upgrade. Although we remain confident of a Source: Deutsche Bank 2017 profit recovery at Li Ning (thanks to strong e-commerce and prudent expense control), we shift our preference to Anta. We view the up