ANTA's acquisition of Puma is a win-win! JP Morgan: ANTA needs globalization, and Puma needs it, while ANTA excels at "restructuring."

On January 27, 2026, before the market opened, ANTA SPORTS announced the acquisition of a 29% stake in Puma for €1.5 billion (approximately RMB 12.3 billion), becoming the largest shareholder of this globally renowned sports brand.

According to the Wind Trading Platform, JP Morgan stated in its latest research report that this is a win-win transaction, maintaining ANTA's "overweight" rating with a target price of HKD 141.

JP Morgan believes that this transaction has long-term strategic value for both parties, as Puma's global business layout and segmentation in sports categories are highly complementary to ANTA. Puma will help enhance ANTA's market influence and brand recognition, while ANTA is expected to promote Puma's revitalization and regain momentum, especially in the Chinese market to tap into its brand potential.

Strategic Complementarity: The Perfect Combination of Puma's Global Layout and ANTA's Brand Revitalization Capability

JP Morgan pointed out that this transaction has long-term strategic value for both parties. Puma's global business layout and segmentation in sports categories are highly complementary to ANTA, helping to enhance ANTA's influence and brand recognition in the global sports goods market.

ANTA has been committed to promoting multi-brand transformation, value revitalization, and high-quality growth in both the Chinese and global markets, achieving significant results. This experience is expected to facilitate Puma's revitalization and regain momentum, especially in the Chinese market, where Puma's sales contribution was only about 7% in the first half of 2025.

Puma's strengths in specific categories (such as football, running, motorsports, and fitness) and its global layout (especially in Europe, Latin America, Africa, and India) are highly complementary to ANTA.

Transaction Details: Fair Valuation and Prudent Financing

Valuation Analysis: The consideration is €35 per share, a premium of 62% over Puma's recent closing price of €21.63. The implied valuation is 0.7 times the expected 2026 price-to-sales ratio, lower than the average of 2.9 times for global sports apparel companies and 1.7 times for Chinese sports apparel companies. Considering Puma's brand assets, existing mind share in specific sports categories, and future prospects, JP Morgan believes this is a relatively fair valuation.

Funding Source: The acquisition funding of €1.5 billion (approximately RMB 12.3 billion) will be entirely sourced from ANTA's internal resources. As of the first half of 2025, ANTA's net cash reached RMB 31.5 billion, alleviating investors' concerns about additional financing needs.

Closing Timeline: This transaction requires approval from relevant departments, including antitrust approvals from various antitrust agencies. Management expects it to take 6-10 months to complete under normal circumstances.

Management's Strategic Intent: Minority Equity Investment, Seeking Supervisory Board Representation

At the analyst communication meeting, management clearly stated that this move aims to acquire a minority stake with significant strategic importance. ANTA plans to seek sufficient representation on the supervisory board as soon as the transaction is completed, working closely with other supervisory board members to help revitalize Puma and fully unleash its brand potential.

Management expects no impact on the dividend for 2025 and aims to maintain a stable and healthy dividend in the future, depending on free cash flow.

Investors should focus on two aspects in the short term:

Financial Impact: Consensus expectations regarding Puma indicate a loss of €195 million in 2026. Assuming the transaction proceeds as planned, JP Morgan estimates the potential impact on net profit for 2026 will be in the low single digits.

Restructuring Cycle: How long it will take to reshape Puma remains a focus of market attention