FY23 results above market expectations; dividend payout ratio hiked to 50.7%
Anta Sports (2020.HK) FY23 results above market expectations; dividend payout ratio hiked to 50.7%
- FY23 net earnings rose 35% y-o-y, above market expectations, with key beat from stronger than expected OP margin increase of 3.7ppt to 24.6%
- FY23 revenue grew 16.2% to Rmb62,356m, where ANTA brand rose 9.3% y-o-y, FILA increased by 16.6%, while all other brands increased by 57.7% y-o-y respectively.
- Final DPS declared at HK115 cents, with full year dividend payout ratio reaching 50.7% in 2023 (2022: 44.3%)
- Our last rating stood a BUY, with TP under review; more to follow post results briefing this afternoon.
Anta Sports (2020.HK) FY23 results above expectations. FY23 net earnings rose 35% y-o-y to Rmb10,954m. Excluding the impact of share of loss from JV (Amer Sports), net earnings rose 45% y-o-y. Key beat came from stronger than expected OP margin improvement of 3.7ppt to 24.6%. FY23 revenue rose 16% to Rmb62,356m. Of which, ANTA brand sales rose 9% y-o-y to Rmb30,306m, followed by FILA brand sales increase of 16% y-o-y, while All Other Brands’ sales rose 57.7% y-o-y over the same period. Overall GP margin expanded by 2.4ppt to 62.6%. In terms of OP margin, ANTA brand/ FILA brand/ All Other Brands OP margin increased by 0.8ppt/ 7.6ppt/ 6.5ppt to 22.2%/ 27.6%/ 27.1% respectively. The Company has recommended a final DPS of HK115 cents, with total DPS (Including interim) surged 47% y-o-y to HK197 cents (2022: HK134 cents), equivalent to 50.7% dividend payout ratio (2022: 44.3%)
Overall, inventory turnover declined by 15 days to 123 days in 2023, while trade receivables declined by 1 day to 20 days. In terms of financial position, the Company’s net cash position expanded to Rmb33,573m as of Dec’23 (Dec’22: Rmb14,998m), lifted by strong free cash inflow of Rmb17,823m in 2023 (2022: Rmb10,415m). Besides a stellar performance, Amer Sports was also successfully listed on NYSE in Feb-2024. Amer Sports revenue rose 30% y-o-y to Rmb31.2bn, while EBITDA increase by 45.4% y-o-y to Rmb3.75b. Our last rating stood at a BUY, with TP under review. More to follow post results briefing this afternoon.