南塔基特报告：球类与供应链领导地位推动长期增长

USA | Lifestyle & Growth Platforms Acushnet NANTUCKET TAKES: Leadership in Balls andSupply Chain Driving Durable Growth We hosted Acushnet's David Maher (CEO), Sean Sullivan (CFO), and CameronVollmuth(IR)at our Nantucket Consumer Conference and came awayconstructive on the durability of its category leadership and growth outlook.With leading share in premium balls, continued capacity and infrastructure Ball Leadership and Capacity Investment Remain Key Advantages.Mgmt highlighted that ~74%of top players use its Titleist golf ball, reinforcing its leadership position in the premium segment.The company has been operating its ball plants at full capacity since COVID and is investing toexpand output, including a recent $120M investment in ball manufacturing, with some capacity still R&D, Influence, and Fitting Drive Competitive Moat.The company prioritizes R&D, influence, andfitting over traditional advertising, with these pillars underpinning its competitive positioning. Itremains a patent leader in golf balls, making the category difficult to penetrate. Fitting continues to Participation Trends Remain Supportive.Golf participation has expanded for eight consecutiveyears, supported by growth in women, juniors, and aging demographics. While rounds of play areinfluenced by weather, mgmt highlighted that rounds have trended upward since the 2021 peakwith only one year of decline. Industry supply remains tight following years of course closures pre- Supply Chain Control and Vertical Integration Provide Stability.Acushnet maintains a highlycontrolled and diversified supply chain, including ball plants in Massachusetts and Thailand, afootwear JV in Vietnam, and glove assembly across multiple global markets. Mgmt emphasizeda "make what we sell" philosophy, which supports quality control and consistency. This vertical Margin Profile Supported by Pricing and Scale.Mgmt noted that recent pricing actions havesupported margins and views ~50% gross margin as reasonable longer term. Investment inmanufacturing capacity and infrastructure, including ~$95M in capex this year, should furthersupport operating leverage as demand remains strong. While some share has been left on the Randal J. Konik * | Equity Analyst(212) 708-2719 | rkonik@jefferies.com Resilient End Market with Limited Cyclicality.The ball business remains relatively resilient, as avidgolfers continue to play and require replacement product. While replacement cycles for equipmentmay extend modestly in a downturn, mgmt noted that the business proved resilient during priorcycles, with EBITDA declining ~15% during the 2008-09 period. Overall, mgmt views the business Mina Solujic * | Equity Associate+1 (212) 444-4298 | msolujic@jefferies.com Kevin Seo * | Equity Associate+1 (646) 352-5609 | kseo@jefferies.com Company Description Acushnet manufactures and distributes golf equipment and accessories under the Titleist, FootJoy, Vokey Design, Scotty Cameron, KJUS brandnames. Company Valuation/Risks Acushnet Our $100 PT is based on a ~16x 2027E EV/EBITDA. Risks include slowing industry growth, competition, economic weakness, and adverse weather. Analyst Certification:I, Randal J. Konik, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed I, Carlos Gallagher, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed I, Ty-Lynn Johnson, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed I, Mina Solujic, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed I, Kevin Seo, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensationbased in part