On the first day of the IPO of its subsidiary Yamafin Sports, Anta Sports (02020. HK) saw a surge of nearly 6% in early trading today, boosted by its performance. As of publication, it rose 3.30% to close at HKD 67.3.
In terms of news, Anta's subsidiary, AS. US, rose 3.08% to $13.4 on its first day of trading in the United States last night, with a market value of $6.492 billion. In post market trading, it rose 3.28% again to $13.83.
ANTA has previously partnered with multiple institutions to acquire Yamafen
At the end of 2018, Anta Group, in collaboration with Fangyuan Capital, Lululemon founder Chip Wilson's investment company Anamed Investments, and Tencent, formed a consortium and announced that they would voluntarily propose a cash tender offer to acquire all issued and outstanding shares of Yamafin Sports through the newly established Massot Bidco Oy company.
In the end, they completed the acquisition for 4.66 billion euros, which is almost the same as Anta's annual total revenue in the same year. It can be said that Anta paid a great price for the acquisition case.
Until January 4th this year, Amer Sports, a subsidiary of Anta, announced on its official website that the company had publicly submitted an F-1 registration statement to the US Securities and Exchange Commission (SEC) regarding its initial public offering (IPO) plan for common stock. The company has applied to list its common stock on the New York Stock Exchange under the stock code "AS".
Two major brands under Yamafen Sports are popular in Greater China
According to the IPO information of Amafin Sports, the company mainly deals in outdoor sports apparel and equipment, and its brands include Arcteryx, Salomon, Wilson, etc. It has over 330 self operated stores.
According to the operating data from 2020 to the first three quarters of 2023, Yamafin Sports achieved revenue of 2.446 billion US dollars, 3.067 billion US dollars, 3.549 billion US dollars, and 3.053 billion US dollars respectively; During the same period, the company achieved net losses of $237 million, $126 million, $253 million, and $114 million, respectively.
It is worth mentioning that in recent years, the revenue of Yamafen Sports Greater China has grown rapidly, with the proportion of regional revenue to the company's total revenue rapidly increasing from 8.3% in 2020 to 19.4% in the first three quarters of 2023. The latest data shows that 40% of Yamafin Sports's revenue comes from the Americas, 33% comes from Europe, the Middle East, and Africa, and 8% comes from the Asia Pacific region (excluding Greater China).
Specifically, the revenue of the Greater China region increased from $202.3 million in 2020 to $523.8 million in 2022, with a compound annual growth rate of 60.9%. The regional profit margin exceeded the overall profit margin of the company. According to data from 2022, about 33% of Yamafen Sports's OEM factories come from China.
The growth of Yamafin Sports in Greater China is related to the popularity of Archaeopteryx and Salomon. From 2021 to 2022, the revenue growth rate of Salomon Greater China reached 72%. As of the end of September 2023, Archaeopteryx has accumulated over 1.7 million members in the Greater China region, compared to only 14000 in 2018.