Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company is strategically selling its loss-making brands "Gai Shi Wei" and "Pa La Ding" under KP Global for USD 151 million to its major shareholder, the Ding family, and will distribute the entire amount as a special dividend to enhance shareholder returns [3] - The sale is expected to improve the company's financial performance by eliminating ongoing losses from these brands, which have accumulated over USD 100 million in losses since their acquisition in 2019 [3] - The company plans to focus on its core running business, enhancing its competitive position in the market [3] Financial Data and Earnings Forecast - The company reported a revenue of RMB 143.5 billion for FY2023, representing a year-on-year growth of 10.9% [6] - The net profit for FY2023 was RMB 10.3 billion, with a year-on-year increase of 11.8% [6] - The forecasted net profits for FY2024, FY2025, and FY2026 are RMB 11.5 billion, RMB 13.0 billion, and RMB 14.6 billion respectively, with corresponding PE ratios of 11, 10, and 9 [4][12] - The company aims for a double-digit revenue growth target for the year, supported by strong sales performance in Q1 2024 [3][10] Shareholder Returns - The special dividend from the sale will amount to approximately HKD 0.447 per share, resulting in a dividend yield of about 8.2% based on the latest closing price [3] - The transaction is expected to be completed in the second half of the year, with benefits reflected in the 2024 financial results [3] Business Focus - The company will streamline its brand portfolio to concentrate on the running segment, with plans to leverage its main brand for the mass market and other brands for niche markets [3] - The overall business structure will be simplified, allowing for more focused resource allocation and accelerated brand development [3]
出售时尚运动改善业绩，派发特别股息强化股东回报