Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Viewpoints - The main brand, Xtep, shows steady performance with a revenue increase of 3% to 12.3 billion, while professional sports revenue (including Saucony) surged by 57% to 1.3 billion [1] - The overall revenue for 2024 is projected at 13.6 billion, reflecting a 7% year-on-year growth [1] - The company is focusing on a Direct-to-Consumer (DTC) strategy to enhance brand loyalty and customer retention, with plans to reclaim distribution rights for 400-500 stores by 2026 [3] - The running trend in China continues to grow, with Xtep achieving the highest wearing rate in major marathons, solidifying its position as a leading running brand [2] Summary by Sections Financial Performance - Total revenue for 2024 is 13.6 billion, up 7% year-on-year; main brand revenue is 12.3 billion, up 3%, and professional sports revenue is 1.3 billion, up 57% [1] - Footwear revenue is 8.1 billion (59% of total), up 16%, while apparel revenue is 5.2 billion, down 6% [1] - The overall gross margin for 2024 is 43%, an increase of 1.4 percentage points [1] - Net profit attributable to shareholders is projected at 1.2 billion, a 20% increase [1] Market Position and Strategy - The company operates 6,382 adult brand stores and 1,584 children's stores in China, with plans to enhance its DTC strategy [3] - Saucony is positioned as a secondary growth driver, ranking among the top three in marathon shoe wearing rates [2] Future Outlook - Revenue forecasts for 2025-2027 are 14.7 billion, 15.8 billion, and 17 billion respectively, with net profit estimates of 1.36 billion, 1.52 billion, and 1.69 billion [4]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a net profit of 1.24 billion RMB for FY2024, marking a 20.2% year-on-year increase, achieving a historical high [5] - The main brand's revenue grew steadily, with professional sports showing strong performance, particularly with a 57.2% increase in revenue from the professional sports segment [5] - The company is focusing on direct-to-consumer (DTC) channel transformation to enhance long-term competitiveness [5] Financial Data and Profit Forecast - FY2023 revenue was 143.46 billion RMB, with a projected revenue of 146.36 billion RMB for FY2025, reflecting an 8% growth [4] - The net profit for FY2023 was 1.03 billion RMB, expected to rise to 1.37 billion RMB by FY2025, indicating a 10% growth [4] - The gross margin is projected to improve from 42% in FY2023 to 45% by FY2027 [4] Brand and Channel Performance - The main brand's revenue accounted for 90.8% of total revenue, with a slight decrease in gross margin to 41.8% [5] - Online sales grew approximately 20%, with new platforms like Douyin and Xiaohongshu seeing over 80% growth [5] - The company operates 6,382 adult clothing stores, with a net decrease of 189 stores, while children's stores numbered 1,584, with a net decrease of 119 stores [5] Profitability and Cash Flow - The gross margin improved to 43.2%, with a net profit margin of 9.1% [5] - Inventory turnover days decreased by 22 days to 68 days, indicating improved efficiency [5] - Operating cash flow remained stable at 1.228 billion RMB, with cash and cash equivalents totaling 3 billion RMB [5]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the stock price compared to the benchmark index within the next 6 to 12 months [8]. Core Insights - The company achieved a revenue of 135.77 billion yuan in 2024, representing a year-on-year growth of 6.5% after excluding the divested K&P business. The net profit attributable to shareholders was 12.38 billion yuan, with a year-on-year increase of 20.2%, aligning with expectations [4]. - The main brand, Xtep, reported a revenue of 123.27 billion yuan in 2024, growing by 3.2%. The online e-commerce segment saw approximately 20% growth, accounting for over 30% of total revenue, with emerging platforms like Douyin experiencing over 80% growth [4]. - The professional sports segment, including Saucony, achieved a revenue of 1.25 billion yuan in 2024, marking a significant year-on-year increase of 57.2%. Saucony's revenue surpassed 1 billion yuan, with improved profitability [4]. - The company plans to enhance its Direct-to-Consumer (DTC) strategy, aiming to recover distribution rights for approximately 400 to 500 Xtep stores by late 2025 and 2026 [4]. Financial Performance Summary - Revenue projections for the company are as follows: 2023A at 14,346 million yuan, 2024A at 13,577 million yuan, 2025E at 14,531 million yuan, 2026E at 15,685 million yuan, and 2027E at 16,831 million yuan [2]. - The net profit attributable to shareholders is forecasted to be 1,030 million yuan in 2023A, increasing to 1,672 million yuan by 2027E, with a consistent growth rate of around 10% [2]. - The company's gross margin improved to 43.2% in 2024, with a net margin of 9.1%, reflecting a year-on-year increase of 1.0 percentage points [4]. Valuation Metrics - The report indicates a Price-to-Earnings (P/E) ratio forecast of 13.1 for 2023A, decreasing to 8.1 by 2027E, suggesting an attractive valuation as earnings grow [2]. - The Price-to-Book (P/B) ratio is projected to decline from 1.5 in 2023A to 1.0 in 2027E, indicating a strengthening balance sheet relative to market valuation [2].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 6.34 based on a 12x PE valuation for 2025 [4][5]. Core Insights - The company has adjusted its revenue and gross margin forecasts for 2025-2026, introducing a new forecast for 2027, with expected earnings per share of RMB 0.49, 0.56, and 0.63 for 2025-2027 respectively [4][5]. - The main brand is focusing on increasing Direct-to-Consumer (DTC) investments to enhance customer interaction and brand loyalty [7][8]. - The professional sports segment, particularly the Saucony brand, has shown significant revenue growth and improved profitability, indicating the effectiveness of the DTC strategy [7][8]. Financial Performance Summary - For 2023, the company reported revenue of RMB 14,346 million, with a year-on-year growth of 10.9%. The projected revenues for 2024, 2025, 2026, and 2027 are RMB 13,577 million, RMB 14,452 million, RMB 15,795 million, and RMB 17,244 million respectively, with growth rates of -5.4%, 6.4%, 9.3%, and 9.2% [4][8]. - The operating profit for 2023 was RMB 1,580 million, with a year-on-year growth of 7.9%. The expected operating profits for the following years are RMB 1,966 million, RMB 1,980 million, RMB 2,309 million, and RMB 2,593 million, reflecting growth rates of 24.4%, 0.7%, 16.6%, and 12.3% [4][8]. - The net profit attributable to the parent company for 2023 was RMB 1,030 million, with a year-on-year increase of 11.8%. The forecasts for the next four years are RMB 1,238 million, RMB 1,369 million, RMB 1,558 million, and RMB 1,745 million, with growth rates of 20.2%, 10.6%, 13.8%, and 12.0% [4][8]. - The gross margin is expected to improve from 42.2% in 2023 to 45.0% by 2027, while the net margin is projected to increase from 7.2% to 10.1% over the same period [4][8].

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 successfully 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 significant growth in the professional sports segment [12][13] Financial Performance - Revenue breakdown for 2024 shows footwear, apparel, and accessories contributing 59.3%, 38.5%, and 2.2% respectively, with footwear revenue growing by 15.9% [7] - The gross margin improved by 1.4 percentage points to 43.2%, with the professional sports segment's gross margin rising significantly due to acquisitions [8] - Operating profit margin for 2024 was 14.5%, an increase of 0.4 percentage points [11] Retail and Market Strategy - The company is focusing on the running segment, with the main brand's running shoes leading in major marathon events [12] - The number of adult stores decreased by 2.9% to 6,382, while the number of children's stores decreased by 7.0% to 1,584 [7] - The company plans to enhance direct-to-consumer (DTC) strategies, aiming to reclaim distribution rights for 400-500 stores by late 2025 to 2026 [12] Future Outlook - The company expects steady growth for the main brand in 2025, with Saucony's revenue projected to grow by 30-40% [12] - Earnings per share (EPS) estimates for 2025, 2026, and 2027 are 0.50, 0.55, and 0.61 RMB respectively, with corresponding price-to-earnings (P/E) ratios of 10, 9, and 8 [12][14]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 6.34 HKD based on a 12x PE valuation for 2025 [4][5]. Core Insights - The company has adjusted its revenue and gross margin forecasts for 2025-2026, while introducing projections for 2027, expecting earnings per share of 0.49, 0.56, and 0.63 RMB for 2025-2027 respectively [4]. - The main brand, Xtep, is focusing on increasing direct-to-consumer (DTC) investments to enhance customer interaction and brand loyalty [7]. - The professional sports segment, represented by Saucony, has shown significant revenue growth and improved profitability, indicating the effectiveness of the DTC strategy [7]. Financial Summary - For 2023, the company reported revenue of 14,346 million RMB, with a year-on-year growth of 10.9%. The projected revenues for 2024, 2025, 2026, and 2027 are 13,577 million, 14,452 million, 15,795 million, and 17,244 million RMB respectively [4][8]. - The net profit attributable to the parent company for 2023 was 1,030 million RMB, with a projected increase to 1,238 million, 1,369 million, 1,558 million, and 1,745 million RMB for the following years [4][8]. - The gross margin is expected to improve from 42.2% in 2023 to 45.0% by 2027, while the net profit margin is projected to rise from 7.2% to 10.1% over the same period [4][8].

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]

买入（维持） 2025 年 3 月 20 日 公司研究 剥离 KP 业务、索康尼实现高增，聚焦跑步、推进零售改革 ——特步国际（1368.HK）2024 年业绩点评 当前价：5.55 元港币 作者 分析师：姜浩 执业证书编号：S0930522010001 021-52523680 jianghao@ebscn.com 分析师：孙未未 执业证书编号：S0930517080001 021-52523672 sunww@ebscn.com 分析师：朱洁宇 执业证书编号：S0930523070004 021-52523842 zhujieyu@ebscn.com | 市场数据 | | --- | | 总股本(亿股) | 27.75 | | --- | --- | | 总市值(亿港元)： | 153.99 | | 一年最低/最高(港元)： | 4.15/7.13 | | 近 3 月换手率： | 49.0% | 股价相对走势 -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 24/01 24/02 24/03 24/04 24/05 24/06 24/07 24/08 24 ...

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 7.03, representing a potential upside of 23.5% from the current stock price of HKD 5.69 [2][6]. Core Insights - The company is expected to achieve a revenue growth of 20.2% in 2024, driven by increased investment in Direct-to-Consumer (DTC) business [2][6]. - The main brand, Xtep, showed stable growth with a revenue increase of 3.2% to RMB 12.3 billion, benefiting from strong online channel performance [6][7]. - The professional sports segment experienced significant growth of 57.2%, with revenue reaching RMB 1.25 billion, supported by the acquisition of Saucony and Merrell [6][7]. Financial Summary - Revenue projections for the upcoming years are as follows: RMB 12,743 million in 2023, RMB 13,577 million in 2024, RMB 14,940 million in 2025, RMB 16,410 million in 2026, and RMB 17,962 million in 2027, reflecting growth rates of 10.5%, 6.5%, 10.0%, 9.8%, and 9.5% respectively [3][7]. - Operating profit is forecasted to grow from RMB 1,798 million in 2023 to RMB 2,587 million in 2027, with a notable increase of 91.9% in 2023 [3][7]. - Net profit is expected to rise from RMB 1,030 million in 2023 to RMB 1,732 million in 2027, with a growth of 161.3% in 2023 and 20.2% in 2024 [3][7]. - The company maintains a healthy balance sheet with net cash of RMB 980 million and a dividend payout ratio of 50% [6][7]. Market Position and Strategy - The company plans to continue focusing on the running segment, aiming to solidify its position as the leading running brand in China [6][7]. - The strategy includes enhancing operational efficiency by reclaiming distribution rights for approximately 400-500 stores and directly operating flagship stores to improve customer experience [6][7]. - The company anticipates capital expenditures of RMB 500 million for 2025-2026 to support growth initiatives [6][7].

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] Financial Performance Summary - For 2024, the company reported a net profit of 1.238 billion yuan, a 20.2% increase year-on-year. 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] - The company plans to maintain a dividend payout ratio of 50%, with a total dividend yield of 138.2% for the year [1] Earnings Forecast and Financial Indicators - The projected earnings for 2025 are expected to grow by 10%, with net profits estimated at 1.402 billion yuan, reflecting a 13.2% increase [3][4] - The company anticipates a revenue increase of 5.4% in 2025, reaching 14.311 billion yuan, with a net profit margin of 9.8% [4][18] - The price-to-earnings (P/E) ratio is projected to be between 11-12x for 2025, with a reasonable valuation range of 6.1 to 6.6 HKD [3][5][20]