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)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
Morningstar’s Guide to Investing in Stocks
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst