Anta Had a Strong Start to 2022, but Lockdowns in March Cloud Near-Term Outlook.

There were few surprises in narrow-moat Anta’s 2021 full-year results because the company had announced some of the numbers in January. We slightly lower our assumptions for 2022 to account for the impact of current COVID-19 lockdown policies in China. We would treat volatility in the stock as opportunistic entry points, but we acknowledge further lockdowns could lead to downward revisions to our near-term estimates. That said, our base case assumes that most lockdowns will end by summer, and sales should recover following the reopening of malls.