Chinese Sportswear Giant Anta Plans Up to $1.28 Billion Buyback as Profit Jumps

By Sherry Qin

Chinese sportswear giant Anta said it plans an up to US$1.28 billion share buyback as it reported a 17% rise in first-half net profit.

Anta Sports Products on Tuesday said its net profit rose to 6.16 billion yuan, equivalent to US$865 million, from 5.26 billion yuan a year earlier.

Revenue climbed 14% to 33.735 billion yuan as sales rose across its brands, including Anta and Fila.

Anta said it remains cautiously optimistic about the Chinese sportswear industry's fundamental strength and long-term prospects.

The sportswear company also said it will repurchase up to 10 billion Hong Kong dollars of shares, equivalent to US$1.28 billion, with its existing cash reserves over the next 18 months.

The board has "full confidence" in the company's business development and outlook and believes the current share price is below its actual value, Anta said in a separate filing.

Its shares in Hong Kong have fallen 5.4% this year, underperforming the benchmark Hang Seng Index's 4.85% gain.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

August 27, 2024 05:59 ET (09:59 GMT)

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