Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 13.58 billion RMB in 2024, representing a year-on-year growth of 6.5%, and a net profit of 1.24 billion RMB, up 20.2% year-on-year [5][6] - The company has strategically divested its KP business, which has alleviated profit drag, resulting in a net profit margin increase of 1.0 percentage points to 9.1% [6] - The main brand, Xtep, and the professional sports brand, Saucony, are focusing on running and retail reform, with a strong emphasis on enhancing consumer experience [12][13] Financial Performance - The company’s gross margin improved by 1.4 percentage points to 43.2% in 2024, with the professional sports segment's gross margin rising significantly due to the acquisition of Saucony and Myle [8] - The operating profit margin for 2024 was 14.5%, an increase of 0.4 percentage points year-on-year [11] - The company plans to distribute a total dividend of 0.095 HKD per share, with a total payout ratio of 138.2% [5] Revenue Breakdown - In 2024, the revenue from the main brand (Xtep) and professional sports (Saucony, Myle) accounted for 90.8% and 9.2% of total revenue, respectively, with year-on-year growth of 3.2% and 57.2% [7] - The footwear segment contributed 59.3% of total revenue, with a year-on-year growth of 15.9%, while apparel and accessories saw declines [7] Future Outlook - The company expects steady growth for the main brand in 2025, with Saucony projected to grow by 30-40% year-on-year [12] - The report slightly lowers the profit forecast for 2025 and 2026 by 3% and 4%, respectively, while introducing a forecast for 2027 [12][14]
特步国际：剥离KP业务、索康尼实现高增，聚焦跑步、推进零售改革-20250320