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]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company's 2024 performance met expectations with a revenue growth of 6.5% and a net profit growth of 20.2%, indicating a solid operational performance [1] - The company is expected to achieve a revenue growth of approximately 7% and a net profit growth of around 10% in 2025, driven by the transformation towards direct-to-consumer (DTC) sales and the strong performance of its professional sports segment [9] Financial Performance Summary - In 2024, the company's revenue from continuing operations increased by 6.5% to 13.577 billion yuan, with a gross margin improvement of 1.4 percentage points to 43.2% [1] - The net profit attributable to the parent company rose by 20.2% to 1.238 billion yuan, with a net profit margin increase of 1 percentage point to 9.1% [1] - The company's earnings per share (EPS) for 2024 was 0.45 yuan, with a projected EPS of 0.49 yuan for 2025 [10] Brand and Product Development - The main brand's revenue grew by 3.2% to 12.3 billion yuan in 2024, with a focus on enhancing product and brand strength to meet diverse consumer needs [1] - The professional sports segment, including brands like Saucony, saw a remarkable revenue increase of 57.2% to 1.25 billion yuan in 2024, with a gross margin improvement of 17.2 percentage points to 57.2% [2] Market Position and Strategy - The company has established a robust running ecosystem with 72 running clubs and over 2.2 million members, reinforcing its brand moat [1] - The DTC transformation is expected to significantly enhance retail efficiency and drive long-term business growth [1] Future Outlook - The company anticipates a cautious yet optimistic operational strategy for its main brand in 2025, with continued growth in the professional sports segment [9] - The projected net profit for 2025 is estimated at 1.365 billion yuan, with further growth expected in subsequent years [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company's 2024 performance met expectations with a revenue growth of 6.5% and a net profit growth of 20.2%, indicating a solid operational performance [1] - The company is expected to achieve a revenue growth of approximately 7% and a net profit growth of around 10% in 2025, driven by the ongoing transformation towards direct-to-consumer (DTC) strategies and the strong performance of its professional sports segment [9] Financial Performance Summary - In 2024, the company's revenue from continuing operations increased by 6.5% to 13.577 billion yuan, with a gross margin improvement of 1.4 percentage points to 43.2% [1] - The net profit attributable to shareholders rose by 20.2% to 1.238 billion yuan, with a net profit margin increase of 1 percentage point to 9.1% [1] - The company maintained a dividend payout ratio of 138.2% for 2024, with a stable payout ratio of 50% when excluding special dividends [1] Brand and Product Development - The main brand's revenue grew by 3.2% to 12.3 billion yuan in 2024, with a slight decline in gross margin to 41.8% [1] - The professional sports segment, including brands like Saucony, saw a remarkable revenue increase of 57.2% to 1.25 billion yuan, with a gross margin improvement of 17.2 percentage points to 57.2% [2][9] - The company is enhancing its product and brand strength, establishing a stable running ecosystem with 72 running clubs and over 2.2 million members [1] Market Position and Strategy - The company is focusing on DTC transformation to improve retail efficiency and drive long-term business growth, especially in a fluctuating retail environment [1] - The children's segment is performing well, with 1,584 stores by the end of 2024, and a strategic partnership with Shanghai University of Sport to enhance product development [8]

中金：维持特步国际"跑赢行业"评级 目标价6.90港 元 中金发布研报称，考虑零售环境不确定性及主品牌DTC战略，基本维持特步国际(01368)2025年净 利润预测14亿元不变，下调2026年净利润预测4%至15亿元，当前股价对应11/10倍2025/26年市盈率，维 持"跑赢行业"评级和目标价6.90港元不变，对应13/12倍2025/26年市盈率，较当前股价有21%的上行空 间。出于谨慎考虑，管理层暂预计2025年主品牌收入实现同比增长，Saucony收入同比增长30-40%;2025 年公司净利润同比增长10%+。 中金主要观点如下： 专业运动板块2024年收入同增57%至13亿元，其中Saucony收入同增约60%至10亿元+。继2024年11 月剥离K.SWISS及Palladium后，公司更加聚焦跑步赛道，有效分配资源促进主品牌、Saucony及Merrell 发挥协同作用。Saucony持续深耕高线城市精英人群，2024年在跑鞋基础上进一步拓展服装及生活休闲 产品矩阵，渠道加强布局高线城市核心商圈，2024年末中国内地门店数达145家，管理层计划2025年增 加30-40家门店。 专业运动板块 ...

Revenue and Profit Growth - The group's revenue from continuing operations increased by 6.5% to RMB 13,577.2 million (2023: RMB 12,742.9 million), driven mainly by the stable performance of the Xtep brand and strong growth in the professional sports segment[3]. - Revenue from the Xtep brand rose by 3.2% to RMB 12,326.9 million (2023: RMB 11,947.4 million), while the professional sports segment saw a significant increase of 57.2% to RMB 1,250.3 million (2023: RMB 795.5 million)[3]. - Operating profit from continuing operations grew by 9.3% to RMB 1,965.5 million (2023: RMB 1,798.0 million), with the professional sports segment's operating profit surging by 829.5% to RMB 78.2 million (2023: RMB 8.4 million)[3]. - Profit attributable to ordinary shareholders reached a historic high of RMB 1,238.4 million (2023: RMB 1,030.0 million), marking a growth of 20.2%[3]. - Total revenue for 2024 reached RMB 13,577.2 million, an increase of 6.6% from RMB 12,742.9 million in 2023[38]. - Net profit attributable to ordinary shareholders was RMB 1,238.4 million, representing a net profit margin of 9.1%, up from 8.1% in 2023[38]. - Basic earnings per share for 2024 were RMB 48.67, an increase from RMB 40.76 in 2023[38]. Dividends and Payout Ratios - The proposed final dividend is HKD 0.095 per share (2023: HKD 0.080 per share), with a total annual dividend payout ratio of 138.2%[3][20]. - The annual dividend payout ratio, excluding the special dividend of HKD 0.447 per share, is 50.0%[21]. - The company declared a final dividend of HKD 0.095 per share, with a total annual dividend payout ratio of 50.0%[46]. - The special dividend for the year was HKD 0.447 per share, marking a 221.7% increase in total dividends compared to the previous year[46]. - The company maintained a high dividend payout ratio of 138.2%, with total dividends for 2024 amounting to 69.8 HKD cents per share[165]. - The group maintained a high dividend payout ratio of not less than 50% over the past five years, reflecting its commitment to delivering substantial returns to shareholders[176]. Strategic Focus and Brand Development - The company plans to enhance its direct-to-consumer (DTC) strategy, inspired by successful retail network management, to deepen customer interaction and improve brand loyalty[3]. - The company has strategically refocused on running after the completion of the divestment of K-Swiss and Palladium businesses in November last year[3]. - The company aims to enhance retail channel management and customer experience to expand its market presence in the running segment[49]. - The group aims to strengthen its direct-to-consumer (DTC) strategy, inspired by the success of Saucony in retail network management, to enhance customer interaction and brand loyalty[128]. - The company is focusing on maximizing the synergy between its main brand and the acquired Saucony and Merrell brands in product innovation and marketing[195]. Product Innovation and Market Presence - The launch of the "360X" carbon plate running shoes and the "160X" model, which helped set a national marathon record, highlights the company's commitment to innovation[30]. - The "160X 6.0 PRO" running shoes launched in August 2024 feature a 6.1% improvement in rebound performance and a 4% increase in running economy compared to the previous generation[71]. - The "260X 2.0" multi-scenario carbon plate running shoes were released in December 2024, enhancing running economy and rebound performance[72]. - The "360X" running shoes, launched in March 2024, became one of the best-selling models, leveraging advanced technologies for improved performance[75]. - The launch of new high-performance products includes "TRIUMPH 22," "ENDORPHIN PRO 4," "ENDORPHIN SPEED 4," and "HURRICANE 24," alongside a new apparel line to meet diverse consumer needs[109]. Market Engagement and Community Involvement - Xtep has sponsored a total of 44 top marathons and road running events across China in 2024, including the prestigious Xiamen Marathon, which has been sponsored for 16 consecutive years[81]. - The Xtep running community has over 2,200,000 members and more than 5,900 running teams, enhancing community engagement and brand loyalty[86]. - The "Run the Yellow River" event attracted over 60,000 participants, covering 5,500 kilometers across 8 provinces and 30 cities, marking a significant milestone in community engagement[85]. - The company donated over RMB 58 million in sports goods and cash in 2024, including RMB 10 million in winter supplies for earthquake relief in Tibet[115]. Financial Performance and Efficiency - Gross profit for 2024 was RMB 5,865.4 million, reflecting a gross margin of 43.2%, up from 41.8% in 2023[38]. - The overall gross margin improvement was supported by strong e-commerce performance and the integration of acquired businesses into the group's operations[148]. - Selling and distribution expenses rose to RMB 2,867.9 million, accounting for 21.1% of total revenue, up from RMB 2,654.9 million or 20.8% in 2023, driven by higher advertising and promotional costs[150]. - General and administrative expenses increased to RMB 1,427.6 million, representing 10.5% of total revenue, compared to RMB 1,302.1 million or 10.2% in 2023, mainly due to higher employee costs and related expenses[151]. - The company recorded a decrease in corporate segment losses to RMB 67.2 million from RMB 101.4 million in 2023, primarily due to lower share-based payment expenses[155]. Sustainability and Corporate Responsibility - The introduction of eco-friendly materials in product lines, such as recycled fibers, demonstrates Xtep's commitment to sustainability[95]. - Xtep International Holdings achieved an MSCI ESG rating upgrade to "A" in July 2024, reflecting significant progress in labor standards and corporate governance[112]. - Xtep's 2030 ESG strategy aims to reduce absolute greenhouse gas emissions by 42% by 2030 and achieve carbon neutrality by 2050[113]. - Xtep's self-operated factories increased renewable energy usage by 95%, promoting green transformation in production processes[118]. Operational Adjustments and Future Outlook - The company is strategically adjusting its borrowing structure, favoring RMB loans over HKD loans to leverage lower interest rates in mainland China[192]. - The company is actively communicating with investors to restore confidence amid macroeconomic uncertainties and weak retail sales[200]. - The company aims to streamline its business structure following the KP sale, concentrating resources on its profitable brands[196].

Xtep International Holdings Limited (01368) H2 2024 Earnings Call March 17, 2025 08:00 PM ET Moderator Investors, good afternoon. Welcome to XTAP International Holdings Limited's twenty twenty four Annual Results Announcement Investor Presentation. I am Sophia, Director of Investors Relations. Let me introduce to you our management on stage. They are Group Chairman and CEO, Mr. Dingxue Bo Executive Director, Mr. Yang Lubing Group President, Mr. Tianzhong Group CFO, Mr. Ms. Ding Yi Ji. In today's presentatio ...

Xtep International Holdings Limited (01368) H2 2024 Earnings Call March 17, 2025 08:00 PM ET Speaker0 Investors, good afternoon. Welcome to XTAP International Holdings Limited's twenty twenty four Annual Results Announcement Investor Presentation. I am Sophia, Director of Investors Relations. Let me introduce to you our management on stage. They are Group Chairman and CEO, Mr. Dingxue Bo Executive Director, Mr. Yang Lubing Group President, Mr. Tianzhong Group CFO, Mr. Ms. Ding Yi Ji. In today's presentation ...