Investment Rating - The investment rating for the company is "Outperform the Market" [5][17][20] Core Views - The company is expected to achieve a net profit growth of 20% in 2024, with a revenue increase of 6.5% to 13.577 billion yuan. The net profit attributable to shareholders is projected to reach 1.238 billion yuan [1][3] - The main brand's revenue grew by 3.2%, while the professional sports brand saw a significant increase of 57.2%. The footwear category experienced a revenue growth of 15.9%, while the apparel category declined by 5.7% [2][3] - The company has strategically divested non-core assets, focusing resources on running and professional sports, which is expected to enhance profitability [2][3] Summary by Sections Financial Performance - In 2024, the company reported a net profit of 1.238 billion yuan, a year-on-year increase of 20.2%. The operating cash flow remained stable at 1.228 billion yuan, with a net cash ratio of 1.0 [1][4] - The gross profit margin improved by 1.4 percentage points to 43.2%, driven by a higher proportion of high-margin professional sports brands and supply chain optimization [1][4] Brand Performance - The main brand's revenue reached 12.327 billion yuan, with a notable performance from the core running shoe series "160X," which led in wearing rates at major marathons [2][3] - The professional sports brands, including Saucony and Merrell, achieved a revenue of 1.250 billion yuan, with a significant improvement in operating profit margin [2][3] Future Projections - For 2025, the company anticipates a net profit growth of over 10%, with the main brand maintaining positive growth and the professional sports brand expected to grow by 30-40% [3][17] - The projected net profits for 2025-2027 are 1.402 billion yuan, 1.485 billion yuan, and 1.600 billion yuan, respectively, reflecting year-on-year growth rates of 13.2%, 5.9%, and 7.7% [3][4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 performance met expectations, with a revenue of 13.577 billion yuan, down 5.36% year-on-year, primarily due to the divestment of a loss-making business. Excluding this factor, the revenue from continuing operations grew by 6.5% [8] - The net profit attributable to shareholders for 2024 was 1.238 billion yuan, an increase of 20.23% year-on-year, benefiting from the divestment of the loss-making business. Adjusting for one-time tax benefits, the net profit growth was 10% [8] - The main brand, Xtep, is focusing on direct-to-consumer (DTC) strategies, with e-commerce leading growth and offline channels being optimized. The company plans to convert 400-500 dealer stores to DTC by 2025 [8] - The subsidiary brand, Saucony, achieved over 1 billion yuan in revenue, with a year-on-year growth of 57.2%. The company plans to increase flagship stores in high-tier cities in 2025 [8] - Gross margin improved by 2.8 percentage points to 43.2% in 2024, while the expense ratio saw a slight increase due to higher costs associated with the acquisition of Saucony and increased e-commerce expenses [8] - The company adjusted its net profit forecasts for 2025 and 2026 slightly downward to 1.37 billion yuan and 1.57 billion yuan, respectively, while introducing a new forecast for 2027 at 1.77 billion yuan [8] Summary by Sections Financial Performance - Total revenue for 2023 was 14.346 billion yuan, with a projected decline to 13.577 billion yuan in 2024, followed by a recovery to 14.313 billion yuan in 2025 [1] - Net profit for 2023 was 1.03 billion yuan, expected to rise to 1.238 billion yuan in 2024 and continue increasing to 1.769 billion yuan by 2027 [1] Brand Strategy - The main brand Xtep's revenue in 2024 was 12.327 billion yuan, growing by 3.2% year-on-year, with a focus on the running segment and a strong presence in major marathon events [8] - Saucony's revenue reached 1.25 billion yuan in 2024, with significant growth across e-commerce, retail, and wholesale channels [8] Profitability and Cash Flow - The gross margin for 2024 was 43.2%, with the main brand's margin slightly declining to 41.8% while Saucony's margin improved significantly [8] - Operating cash flow for 2024 was 1.23 billion yuan, reflecting a slight decrease of 2% year-on-year, with net cash increasing by 5.6% to 988 million yuan [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 performance met expectations, with total revenue of 13.577 billion yuan, a year-over-year decrease of 5.36%. Excluding the impact of divesting the loss-making business, the revenue from continuing operations increased by 6.5% [8] - The net profit attributable to shareholders for 2024 was 1.238 billion yuan, reflecting a year-over-year increase of 20.23%, driven by the divestment of the loss-making business [8] - The main brand, Xtep, is focusing on direct-to-consumer (DTC) strategies, with e-commerce leading growth and offline channels being optimized. The company plans to convert 400-500 distributor stores to DTC by 2025 [8] - The subsidiary brand, Saucony, achieved revenue exceeding 1 billion yuan in 2024, with a year-over-year growth of 57.2%. The company plans to expand its flagship stores in high-tier cities [8] - The gross margin improved by 2.8 percentage points to 43.2% in 2024, with a healthy cash position reflected in a net cash of 985 million yuan, a year-over-year increase of 5.6% [8] - The profit forecasts for 2025 and 2026 have been slightly adjusted downwards to 1.37 billion yuan and 1.57 billion yuan, respectively, while a new forecast for 2027 is set at 1.77 billion yuan [8] Financial Summary - Total revenue projections for 2024, 2025, 2026, and 2027 are 13.577 billion yuan, 14.313 billion yuan, 15.471 billion yuan, and 16.708 billion yuan, respectively [1] - The net profit attributable to shareholders is projected to be 1.369 billion yuan in 2025, 1.566 billion yuan in 2026, and 1.768 billion yuan in 2027 [1] - The earnings per share (EPS) are expected to be 0.49 yuan in 2025, 0.56 yuan in 2026, and 0.64 yuan in 2027 [1]

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 RMB 135.77 billion, a year-on-year increase of 6.5%, with gross profit of RMB 58.65 billion, up 10.0% [7] - The net profit attributable to the parent company for 2024 is expected to be RMB 12.38 billion, 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 company’s main brand, Xtep, shows steady growth with 2024 revenue of RMB 123.27 billion, up 3.2%, driven by strong online channel performance [7] - The professional sports segment (including Saucony and Merrell) is growing rapidly, with 2024 revenue of RMB 12.50 billion, a 57.2% increase [7] - The footwear segment achieved revenue of RMB 80.54 billion in 2024, a 15.9% increase, and accounted for 59.3% of total revenue [7] Earnings Forecast and Valuation - The company’s projected net profit for 2025 is RMB 13.63 billion, with a year-on-year growth of 10.07% [6][7] - The projected earnings per share for 2025 is RMB 0.49, with a price-to-earnings ratio of 10.46 [6] - The company is expected to maintain a strong return on equity (ROE) of 13.54% in 2025 [6]

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]