Come join us in this presentation as we share our views on these companies and why they have the potential to outperform the market in the longer term. Our HK analyst will also be answering your questions in Mandarin via webcast.

1. Anta Sports 安踏體育 (2020 HK)
Anta Sports has a strong and a variety of brand portfolio comprising self-developed ANTA and acquired international brands like Fila and Descente, supporting its revenue growth. Based on its latest 1H18 results, retail sales for ANTA and Fila rose by 15-20% and 85-90% yoy respectively, helping the top line revenue and net profit to grow 44% and 34% yoy respectively. We believe the concern of inventory day surge is not justified, given that the company has restructured its business focus from wholesale to retail and the strong growth in Fila. With strong guidance from the management who expected the 1H18 strong results would continue in 2H18, we maintain BUY with a new target price of HK$49.00.

http://en.anta.com/

2. Shenzhou International 申洲國際(2313 HK)
Shenzhou International (SZ) is one of the largest vertically integrated knitwear manufacturers in China, with renowned international brand clients, including Nike, Adidas, Uniqlo and Puma. Nearly 35% of SZ total revenue in 2017 was sourced from Nike, given its Nike Flyknit sneakers’ outsole supply. The second largest client was Adidas, with 29% of the total revenue. Taking into account that Nike China sales grew 19% and 25% yoy in 3Q and 4Q18FY, SZ orders should propel. In addition, RMB is expected to slide in 2H18 and the full year foreign currency effect should be positive to SZ. Riding on consumption upgrade in China, we recommend BUY with a target price of HK$95.00.

http://www.shenzhouintl.com/en/index.asp

3. BOC Aviation 中銀航空租賃(2588 HK)
BOC Aviation (BOCAV) is the largest aircraft lessor in Asia and the fifth in the world in terms of fleet value. Its average remaining leasing terms was 8.3 years, longest among the top 5 players, suggesting a high visibility on revenue. 31 aircrafts are expected to be delivered in 2H18 and it would continue the revenue growth rate in 1H18. Besides, BOCAV enjoys the highest credit rating against peers, dragging down the cost of debt and positive to net lease yield. With better-than-expected first half results and low residual value risk, we maintain BUY with a target price of HK$60.00.

https://www.bocaviation.com/