Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The professional sports segment is experiencing rapid revenue growth, with net profit attributable to the parent company increasing by 20% [5] - The company has completed the strategic divestiture of KP Global, with a revenue growth of 6.5% year-on-year for 2024 [7] - The company focuses on the running segment, enhancing resource allocation to optimize operations [7] Financial Performance Summary - Revenue for 2024 is projected at 135.77 billion RMB, a year-on-year increase of 6.5%, with a gross profit of 58.65 billion RMB, up 10.0% [7] - The net profit attributable to the parent company for 2024 is expected to be 12.38 billion RMB, reflecting a 20.2% increase [7] - The gross margin and net profit margin for 2024 are projected to be 43.2% and 9.1%, respectively, improving by 1.36 percentage points and 1.04 percentage points compared to 2023 [7] Brand and Product Analysis - The mass sports segment shows steady growth, with revenue from the main brand reaching 123.27 billion RMB in 2024, a 3.2% increase [7] - The professional sports segment (including Saucony and Merrell) is growing rapidly, with a revenue increase of 57.2% to 12.50 billion RMB in 2024 [7] - The footwear segment achieved revenue of 80.54 billion RMB in 2024, a 15.9% increase, accounting for 59.3% of total revenue [7] Earnings Forecast and Valuation - The company is expected to achieve net profits of 13.63 billion RMB, 15.77 billion RMB, and 17.88 billion RMB for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 10.07%, 15.67%, and 13.37% [7] - The projected earnings per share for 2025 is 0.49 RMB, with a price-to-earnings ratio of 10.46 [6][7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to maintain a high growth momentum, with projected revenue of 135.77 billion yuan in 2024, representing a year-on-year increase of 6.5%. The net profit attributable to shareholders is forecasted to be 12.38 billion yuan, reflecting a growth of 20.2% [5] - The main brand is increasing its Direct-to-Consumer (DTC) strategy, which is anticipated to enhance store efficiency and maintain high growth in revenue, particularly in children's clothing and e-commerce segments [6][7] - The company has adjusted its profit forecasts slightly downward for 2025-2026 but has introduced a new forecast for 2027, with net profits expected to be 13.7 billion yuan, 15.3 billion yuan, and 16.9 billion yuan for the respective years [5] Financial Summary and Valuation Metrics - Revenue projections for the company are as follows: - 2023: 12,743 million yuan - 2024: 13,577 million yuan (YOY +6.5%) - 2025: 14,446 million yuan (YOY +6.4%) - 2026: 15,896 million yuan (YOY +10.0%) - 2027: 17,375 million yuan (YOY +9.3%) [8] - Net profit projections are: - 2023: 1,030 million yuan - 2024: 1,238 million yuan (YOY +20.2%) - 2025: 1,373 million yuan (YOY +10.8%) - 2026: 1,530 million yuan (YOY +11.5%) - 2027: 1,693 million yuan (YOY +10.6%) [8] - The company's gross margin is expected to improve from 41.8% in 2024 to 45.5% in 2027, while the net profit margin is projected to increase from 9.1% in 2024 to 9.7% in 2027 [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to maintain high revenue growth momentum, driven by increased Direct-to-Consumer (DTC) strategy investments and strong performance in children's clothing and e-commerce segments [5][6] - The forecasted net profit for 2025 is adjusted to 1.37 billion, with a projected growth of 10.8% [5] - The company's current price-to-earnings (PE) ratio is estimated at 10.4 for 2025, indicating a favorable valuation [5] Financial Summary - Revenue for 2024 is projected at 135.77 billion, reflecting a year-on-year growth of 6.5% [5] - The net profit for 2024 is expected to be 12.38 billion, representing a 20.2% increase [5] - The gross margin is anticipated to improve to 44.1% by 2025, with a net profit margin of 9.5% [8] - The company’s return on equity (ROE) is forecasted to reach 15.4% in 2025 [8] Business Strategy - The company plans to optimize its store structure, focusing on increasing the proportion of profitable stores while reducing losses from underperforming locations [6] - The DTC strategy is expected to enhance consumer interaction and brand loyalty, with plans to recover 400-500 stores by 2026 [6] - The professional sports segment has shown significant growth, with revenue increasing by 57.2% in 2024, contributing to the overall profitability of the company [7]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 6.58 [6][7]. Core Views - The company reported a revenue of RMB 13.58 billion for 2024, representing a year-on-year increase of 6.5%, and a net profit of RMB 1.24 billion, up 20.2% year-on-year, which aligns closely with previous expectations [1][2]. - The company is focusing on strengthening its running matrix and enhancing its competitive edge through the main brand and professional sports brands like Saucony, which continues to show high growth [2][3]. - The company is accelerating its Direct-to-Consumer (DTC) strategy, planning to reclaim distribution rights for approximately 400-500 stores, which is expected to enhance brand influence and market competitiveness [2][3]. Summary by Sections Financial Performance - The company achieved a gross margin of 43.2%, an increase of 1.0 percentage points year-on-year, primarily due to the high gross margin from Saucony [3]. - The net profit margin increased by 1.9 percentage points to 9.1% during the period [3]. - The company maintained a healthy operating capital turnover of 87 days, with inventory turnover days reduced by 22 days to 68 days [3]. Revenue Breakdown - The main brand's revenue increased by 3.2% to RMB 12.33 billion, while the professional sports segment, including Saucony and Merrell, saw a significant revenue increase of 57.2% to RMB 1.25 billion, with Saucony's revenue surpassing RMB 1 billion [2]. - Online e-commerce revenue grew approximately 20%, accounting for over 30% of total revenue [2]. Profit Forecast and Valuation - The net profit estimates for 2025 and 2026 have been adjusted downwards by 8.0% and 10.5% to RMB 1.37 billion and RMB 1.53 billion, respectively, with a new estimate for 2027 at RMB 1.71 billion [4]. - The target price corresponds to a PE ratio of 12.3x for 2025, based on the company's strong brand positioning in the running sector and the synergy from multiple brands [4].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has achieved revenue of 13.577 billion and net profit of 1.238 billion in 2024, with year-on-year growth of 6.5% and 20.2% respectively [2] - The company is focusing on expanding its DTC strategy, which may have short-term negative impacts on sales but is expected to enhance brand loyalty and consumer interaction in the long run [7] - The company has sold the KP brand, which is expected to reduce financial drag and allow a focus on three main brands [7] Financial Performance - In 2024, the company's gross profit margin was 43.2%, an increase of 1.4 percentage points year-on-year, driven by higher e-commerce sales and the acquisition of Saucony and Myle [4] - The operating profit margin (OPM) was 14.5%, up 0.4 percentage points year-on-year, with operating profits for the mass sports and professional sports segments increasing by 3.4% and 829.5% respectively [4] - The company’s net profit margin for 2024 was 9.1%, an increase of 1.0 percentage points year-on-year [4] Revenue and Profit Forecast - The revenue forecast for 2025 is adjusted to 14.286 billion, down from 16.140 billion, and for 2026 to 15.558 billion, down from 18.293 billion [7] - The net profit forecast for 2025 is adjusted to 1.374 billion, down from 1.556 billion, and for 2026 to 1.511 billion, down from 1.775 billion [7] - The earnings per share (EPS) forecast for 2025 is adjusted to 0.50, down from 0.59, and for 2026 to 0.54, down from 0.67 [7] Market Position and Strategy - The company is expanding its product matrix and developing retro and commuting series to meet diverse consumer needs [7] - The brand recognition of Saucony has significantly increased among Chinese consumers, ranking among the top three in domestic and international marathon events [3] - The company plans to open new flagship and concept stores in high-end shopping centers to enhance consumer experience [3]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved revenue of 13.577 billion, net profit of 1.238 billion, and operating cash flow of 1.228 billion in 2024, with year-on-year growth of 6.5%, 20.2%, and -2.1% respectively [2] - The net profit growth was primarily due to a significant reduction in losses from the KP brand, which decreased by 70.1% to 67 million [2] - The company plans to continue expanding its product matrix and develop retro and commuting series to meet diverse consumer needs, while also focusing on high-end store openings in first and second-tier cities [7] Financial Performance Summary - In 2024, the company's revenue from the mass sports segment (Xtep) and professional sports segment (Saucony, Myle) was 12.327 billion and 1.25 billion respectively, with year-on-year growth of 3.2% and 57.2% [3] - The gross profit margin for 2024 was 43.2%, an increase of 1.4 percentage points, driven by the higher contribution from e-commerce in the mass sports segment [4] - The company’s inventory improved, with year-end inventory at 1.596 billion, a decrease of 11.0% [5] Earnings Forecast and Valuation - The company’s revenue is projected to reach 14.286 billion in 2025, with a year-on-year growth of 5.22% [9] - The net profit for 2025 is estimated at 1.374 billion, reflecting a year-on-year increase of 10.92% [9] - The earnings per share (EPS) for 2025 is forecasted to be 0.50, with a price-to-earnings (PE) ratio of 10.69 [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company's 2024 performance met expectations with a revenue growth of 6.5% and a net profit growth of 20.2%, indicating a solid operational performance [1] - The company is expected to achieve a revenue growth of approximately 7% and a net profit growth of around 10% in 2025, driven by the transformation towards direct-to-consumer (DTC) sales and the strong performance of its professional sports segment [9] Financial Performance Summary - In 2024, the company's revenue from continuing operations increased by 6.5% to 13.577 billion yuan, with a gross margin improvement of 1.4 percentage points to 43.2% [1] - The net profit attributable to the parent company rose by 20.2% to 1.238 billion yuan, with a net profit margin increase of 1 percentage point to 9.1% [1] - The company's earnings per share (EPS) for 2024 was 0.45 yuan, with a projected EPS of 0.49 yuan for 2025 [10] Brand and Product Development - The main brand's revenue grew by 3.2% to 12.3 billion yuan in 2024, with a focus on enhancing product and brand strength to meet diverse consumer needs [1] - The professional sports segment, including brands like Saucony, saw a remarkable revenue increase of 57.2% to 1.25 billion yuan in 2024, with a gross margin improvement of 17.2 percentage points to 57.2% [2] Market Position and Strategy - The company has established a robust running ecosystem with 72 running clubs and over 2.2 million members, reinforcing its brand moat [1] - The DTC transformation is expected to significantly enhance retail efficiency and drive long-term business growth [1] Future Outlook - The company anticipates a cautious yet optimistic operational strategy for its main brand in 2025, with continued growth in the professional sports segment [9] - The projected net profit for 2025 is estimated at 1.365 billion yuan, with further growth expected in subsequent years [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company's 2024 performance met expectations with a revenue growth of 6.5% and a net profit growth of 20.2%, indicating a solid operational performance [1] - The company is expected to achieve a revenue growth of approximately 7% and a net profit growth of around 10% in 2025, driven by the ongoing transformation towards direct-to-consumer (DTC) strategies and the strong performance of its professional sports segment [9] Financial Performance Summary - In 2024, the company's revenue from continuing operations increased by 6.5% to 13.577 billion yuan, with a gross margin improvement of 1.4 percentage points to 43.2% [1] - The net profit attributable to shareholders rose by 20.2% to 1.238 billion yuan, with a net profit margin increase of 1 percentage point to 9.1% [1] - The company maintained a dividend payout ratio of 138.2% for 2024, with a stable payout ratio of 50% when excluding special dividends [1] Brand and Product Development - The main brand's revenue grew by 3.2% to 12.3 billion yuan in 2024, with a slight decline in gross margin to 41.8% [1] - The professional sports segment, including brands like Saucony, saw a remarkable revenue increase of 57.2% to 1.25 billion yuan, with a gross margin improvement of 17.2 percentage points to 57.2% [2][9] - The company is enhancing its product and brand strength, establishing a stable running ecosystem with 72 running clubs and over 2.2 million members [1] Market Position and Strategy - The company is focusing on DTC transformation to improve retail efficiency and drive long-term business growth, especially in a fluctuating retail environment [1] - The children's segment is performing well, with 1,584 stores by the end of 2024, and a strategic partnership with Shanghai University of Sport to enhance product development [8]

中金：维持特步国际"跑赢行业"评级 目标价6.90港 元 中金发布研报称，考虑零售环境不确定性及主品牌DTC战略，基本维持特步国际(01368)2025年净 利润预测14亿元不变，下调2026年净利润预测4%至15亿元，当前股价对应11/10倍2025/26年市盈率，维 持"跑赢行业"评级和目标价6.90港元不变，对应13/12倍2025/26年市盈率，较当前股价有21%的上行空 间。出于谨慎考虑，管理层暂预计2025年主品牌收入实现同比增长，Saucony收入同比增长30-40%;2025 年公司净利润同比增长10%+。 中金主要观点如下： 专业运动板块2024年收入同增57%至13亿元，其中Saucony收入同增约60%至10亿元+。继2024年11 月剥离K.SWISS及Palladium后，公司更加聚焦跑步赛道，有效分配资源促进主品牌、Saucony及Merrell 发挥协同作用。Saucony持续深耕高线城市精英人群，2024年在跑鞋基础上进一步拓展服装及生活休闲 产品矩阵，渠道加强布局高线城市核心商圈，2024年末中国内地门店数达145家，管理层计划2025年增 加30-40家门店。 专业运动板块 ...

Revenue and Profit Growth - The group's revenue from continuing operations increased by 6.5% to RMB 13,577.2 million (2023: RMB 12,742.9 million), driven mainly by the stable performance of the Xtep brand and strong growth in the professional sports segment[3]. - Revenue from the Xtep brand rose by 3.2% to RMB 12,326.9 million (2023: RMB 11,947.4 million), while the professional sports segment saw a significant increase of 57.2% to RMB 1,250.3 million (2023: RMB 795.5 million)[3]. - Operating profit from continuing operations grew by 9.3% to RMB 1,965.5 million (2023: RMB 1,798.0 million), with the professional sports segment's operating profit surging by 829.5% to RMB 78.2 million (2023: RMB 8.4 million)[3]. - Profit attributable to ordinary shareholders reached a historic high of RMB 1,238.4 million (2023: RMB 1,030.0 million), marking a growth of 20.2%[3]. - Total revenue for 2024 reached RMB 13,577.2 million, an increase of 6.6% from RMB 12,742.9 million in 2023[38]. - Net profit attributable to ordinary shareholders was RMB 1,238.4 million, representing a net profit margin of 9.1%, up from 8.1% in 2023[38]. - Basic earnings per share for 2024 were RMB 48.67, an increase from RMB 40.76 in 2023[38]. Dividends and Payout Ratios - The proposed final dividend is HKD 0.095 per share (2023: HKD 0.080 per share), with a total annual dividend payout ratio of 138.2%[3][20]. - The annual dividend payout ratio, excluding the special dividend of HKD 0.447 per share, is 50.0%[21]. - The company declared a final dividend of HKD 0.095 per share, with a total annual dividend payout ratio of 50.0%[46]. - The special dividend for the year was HKD 0.447 per share, marking a 221.7% increase in total dividends compared to the previous year[46]. - The company maintained a high dividend payout ratio of 138.2%, with total dividends for 2024 amounting to 69.8 HKD cents per share[165]. - The group maintained a high dividend payout ratio of not less than 50% over the past five years, reflecting its commitment to delivering substantial returns to shareholders[176]. Strategic Focus and Brand Development - The company plans to enhance its direct-to-consumer (DTC) strategy, inspired by successful retail network management, to deepen customer interaction and improve brand loyalty[3]. - The company has strategically refocused on running after the completion of the divestment of K-Swiss and Palladium businesses in November last year[3]. - The company aims to enhance retail channel management and customer experience to expand its market presence in the running segment[49]. - The group aims to strengthen its direct-to-consumer (DTC) strategy, inspired by the success of Saucony in retail network management, to enhance customer interaction and brand loyalty[128]. - The company is focusing on maximizing the synergy between its main brand and the acquired Saucony and Merrell brands in product innovation and marketing[195]. Product Innovation and Market Presence - The launch of the "360X" carbon plate running shoes and the "160X" model, which helped set a national marathon record, highlights the company's commitment to innovation[30]. - The "160X 6.0 PRO" running shoes launched in August 2024 feature a 6.1% improvement in rebound performance and a 4% increase in running economy compared to the previous generation[71]. - The "260X 2.0" multi-scenario carbon plate running shoes were released in December 2024, enhancing running economy and rebound performance[72]. - The "360X" running shoes, launched in March 2024, became one of the best-selling models, leveraging advanced technologies for improved performance[75]. - The launch of new high-performance products includes "TRIUMPH 22," "ENDORPHIN PRO 4," "ENDORPHIN SPEED 4," and "HURRICANE 24," alongside a new apparel line to meet diverse consumer needs[109]. Market Engagement and Community Involvement - Xtep has sponsored a total of 44 top marathons and road running events across China in 2024, including the prestigious Xiamen Marathon, which has been sponsored for 16 consecutive years[81]. - The Xtep running community has over 2,200,000 members and more than 5,900 running teams, enhancing community engagement and brand loyalty[86]. - The "Run the Yellow River" event attracted over 60,000 participants, covering 5,500 kilometers across 8 provinces and 30 cities, marking a significant milestone in community engagement[85]. - The company donated over RMB 58 million in sports goods and cash in 2024, including RMB 10 million in winter supplies for earthquake relief in Tibet[115]. Financial Performance and Efficiency - Gross profit for 2024 was RMB 5,865.4 million, reflecting a gross margin of 43.2%, up from 41.8% in 2023[38]. - The overall gross margin improvement was supported by strong e-commerce performance and the integration of acquired businesses into the group's operations[148]. - Selling and distribution expenses rose to RMB 2,867.9 million, accounting for 21.1% of total revenue, up from RMB 2,654.9 million or 20.8% in 2023, driven by higher advertising and promotional costs[150]. - General and administrative expenses increased to RMB 1,427.6 million, representing 10.5% of total revenue, compared to RMB 1,302.1 million or 10.2% in 2023, mainly due to higher employee costs and related expenses[151]. - The company recorded a decrease in corporate segment losses to RMB 67.2 million from RMB 101.4 million in 2023, primarily due to lower share-based payment expenses[155]. Sustainability and Corporate Responsibility - The introduction of eco-friendly materials in product lines, such as recycled fibers, demonstrates Xtep's commitment to sustainability[95]. - Xtep International Holdings achieved an MSCI ESG rating upgrade to "A" in July 2024, reflecting significant progress in labor standards and corporate governance[112]. - Xtep's 2030 ESG strategy aims to reduce absolute greenhouse gas emissions by 42% by 2030 and achieve carbon neutrality by 2050[113]. - Xtep's self-operated factories increased renewable energy usage by 95%, promoting green transformation in production processes[118]. Operational Adjustments and Future Outlook - The company is strategically adjusting its borrowing structure, favoring RMB loans over HKD loans to leverage lower interest rates in mainland China[192]. - The company is actively communicating with investors to restore confidence amid macroeconomic uncertainties and weak retail sales[200]. - The company aims to streamline its business structure following the KP sale, concentrating resources on its profitable brands[196].