Company Overview - Xtep International Holdings Limited is a leading multi-brand sportswear company listed on the Hong Kong Stock Exchange since 2008, primarily engaged in the design, research and development, manufacturing, sales, marketing, and brand management of sports products for adults and children, including footwear, apparel, and accessories [3] Financial Performance - As of December 31, 2024, Xtep International reported total revenue of 13.577 billion yuan, representing a year-on-year growth of 6.55% - The net profit attributable to shareholders was 1.238 billion yuan, showing a year-on-year increase of 20.23% - The gross profit margin stood at 43.2%, while the debt-to-asset ratio was 45.5% [2] Stock Performance - On May 28, the stock price of Xtep International closed at 6.2 HKD per share, marking a 7.45% increase with a trading volume of 43.227 million shares and a turnover of 264 million HKD, with a price fluctuation of 7.8% [1] - Over the past month, Xtep International has seen a cumulative increase of 19.79%, while year-to-date, the stock has risen by 4.07%, underperforming the Hang Seng Index, which has increased by 16.56% [2] Valuation Metrics - Currently, there are no institutional investment ratings for Xtep International - The company's price-to-earnings (P/E) ratio is 11.97, ranking 39th in the industry, while the average P/E ratio for the textile and apparel industry is -5.77, with a median of -0.17 [3]

Group 1 - The Hong Kong stock market's sportswear sector has shown strength, with Anta Sports (02020.HK) rising over 6% [1] - Bosideng International (03813.HK) increased by more than 4% [1] - Other companies such as Li Ning (02331.HK) and Xtep International (01368.HK) also experienced gains [1]

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2022 Interim Results Presentation 23 August 2022 2022 Interim Results Highlights Revenue 37.5% RMB 5,684 m Core Xtep brand revenue RMB 4,898 m Profit attributable to ordinary equity holders 38.4% RMB 590 m Interim dividend per Share 13.0% HK 13.0 cents (Payout ratio: 50.3%) 36.2% Consolidated Financial Review Consolidated Income Statement | RMB m | 1H2022 | 1H2021 | YoY change | | --- | --- | ...

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2022 Annual Results Presentation 22 March 2023 2022 Annual Results Highlights Group's revenue RMB 12,930 m 29.1% Core Xtep brand'srevenue RMB 11,128 m 25.9% Group's operating profit RMB 1,464 m 4.9% Core Xtep brand's operating profit RMB 1,759 m 9.4% Profit attributable to ordinary equity holders of the Company RMB 922 m 1.5% 6,313 Core Xtep Adult branded stores in Mainland China and overseas ...

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2023 Interim Results Presentation 23 August 2023 2023 Interim Results Highlights Core Xtep branded stores in Mainland China and overseas as at 30 June 2023 8,031 RMB 665 m 12.7% RMB 5,430 m 10.9% Core Xtep brand'srevenue Core Xtep brand's net profit RMB 871 m 12.7% RMB 6,522 m 14.8% Group's revenue Profit attributable to ordinary equity holders of the Company HK 13.7 cents Payout ratio: 50.0% ...

2023 Annual Results Presentation 18 March 2024 2023 Annual ResultsHighlights RMB 14,346 m 10.9% Group's revenue RMB 1,030 m 11.8% globally as at 31 December 2023 8,583 branded stores Core Xtep brand's revenue Profit attributable to ordinary equity holders of the Company Professional sports segment's revenue Athleisure segment's revenue (Mainland China) RMB 11,947 m RMB 796 m RMB 465 m HK 8.0 cents1 Full year payout ratio: 50.0% Final dividend per Share RMB 1,794 m 21.6% Group's inventories RMB 1,255 m 119.5 ...

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2024 Interim Results Presentation 20 August 2024 2024 Interim Results Highlights Group's revenue RMB 7,203 m 10.4% Gross profit margin 46.0% 3.1% pts Profit attributable to ordinary equity holders of the Company RMB 752 m 13.0% RMB 826 m 211.6% Interim dividend per Share HK15.6 cents Payout ratio: 50.0% MSCI ESG rating Upgraded to "A" China business Core Xtep brand achieving steady performance ...

Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2024 Annual Results Presentation 18 March 2025 2024 Annual Results Highlights Group's revenue RMB 13,577 m 6.5% RMB 1,250 m 57.2% Operating profit RMB 1,966 m 9.3% RMB 1,238 m Profit attributable to ordinary equity holders of the Company 20.2% Final dividend per Share 1 The proposed final dividend per Share will be subject to the approval of shareholders at the forthcoming annual general meeti ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The retail performance of the main brand remains stable, with a year-on-year revenue growth in the mid-single digits for Q1 2025, primarily driven by footwear sales. The discount rate is between 70-75%, and the inventory turnover ratio is approximately 4 months. The subsidiary brand, Saucony, has shown a robust revenue growth of over 40% year-on-year [6][8]. - Continuous product launches and optimization of the product matrix are evident, with the introduction of the 360X 2.0 carbon plate running shoes and the flagship cushioning running shoes, enhancing the running shoe lineup [8]. - Looking ahead, the company is gradually implementing a Direct-to-Consumer (DTC) channel strategy, which is expected to drive revenue and profit growth. The projected net profits for 2025-2027 are estimated at 1.41 billion, 1.60 billion, and 1.82 billion respectively, with corresponding price-to-earnings ratios of 9, 8, and 7 times [8][10]. Summary by Sections Retail Performance - The main brand's Q1 revenue growth is in the mid-single digits year-on-year, with a discount range of 70-75% and an inventory turnover of about 4 months. Saucony's revenue growth exceeds 40% year-on-year [2][6][8]. Product Development - New products are being launched, including the 360X 2.0 carbon plate running shoes and the flagship cushioning running shoes, which enhance the overall product matrix [8]. Future Outlook - The company is focusing on DTC strategies, with expectations for revenue and profit growth. The projected net profits for 2025-2027 are 1.41 billion, 1.60 billion, and 1.82 billion, with P/E ratios of 9, 8, and 7 respectively [8][10].

Core Viewpoint - Cathay Securities maintains a positive outlook on Xtep International's (01368) competitive strength in the main brand running shoes sector, with a target price of HKD 6.45 for 2025, reflecting a lower-than-industry-average PE of 12X [1] Group 1: Financial Performance - The main brand's Q1 revenue showed single-digit growth year-on-year, with discounts remaining stable at 7-7.5%, and an inventory-to-sales ratio of approximately 4 months, indicating a healthy balance [2] - Xtep's Q1 functional running shoes sales demonstrated double-digit growth, showcasing the company's competitive edge in the running shoe market [3] Group 2: Brand Development and Strategy - The DTC (Direct-to-Consumer) reform is progressing as planned, with expectations to recover 400-500 stores by 2026, which may have a slight short-term impact on 2025 profits but is expected to enhance operational efficiency and customer experience in the long term [3] - Saucony's Q1 revenue increased by over 40% year-on-year, with a growth guidance of 30-40% for 2025, and plans to open 30 new stores, primarily in high-tier markets [4]