Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 was 6.838 billion, representing a year-on-year increase of 7.1%, while the net profit attributable to shareholders was 914 million, up 21.5% year-on-year [7] - The main brand, Xtep, experienced steady growth driven by e-commerce, with revenue from this channel achieving double-digit year-on-year growth [7] - The professional sports segment (including Saucony) saw significant revenue growth of 32.5% year-on-year, primarily due to strong performance in offline retail [7] - The company maintains a positive outlook on its multi-brand strategy and professional advantages in the running sector, with projected net profits of 1.37 billion, 1.57 billion, and 1.77 billion for 2025-2027, corresponding to P/E ratios of 11, 10, and 9 respectively [7] Financial Summary - Total revenue forecast for 2023 is 14.346 billion, with a projected decline of 5.36% in 2024, followed by growth of 5.42% in 2025 [1][8] - The net profit attributable to shareholders is expected to reach 1.03 billion in 2023, increasing to 1.238 billion in 2024 and 1.369 billion in 2025 [1][8] - The latest diluted EPS is projected to be 0.37 in 2023, increasing to 0.45 in 2024 and 0.49 in 2025 [1][8] - The company’s cash flow from operating activities for H1 2025 was 774 million, a decrease of 6.3% year-on-year, while cash on hand increased by 8% to 3.22 billion [7]

Core Insights - Xtep International Holdings Limited reported a 7.1% increase in revenue to 6.838 billion yuan for the six months ending June 30, 2025, with a gross margin of 45.0% [1] - Operating profit grew by 9.1% to 1.305 billion yuan, while profit attributable to ordinary shareholders surged by 21.5% to 914 million yuan [1] Group Performance - The professional sports segment showed strong performance with revenue reaching 785 million yuan, marking a robust 32.5% year-on-year growth, accounting for 11.5% of total revenue [1] - The operating profit for this segment increased significantly by 236.8% to 78.6 million yuan, driven primarily by strong growth from Saucony and stable contributions from Merrell [1] Brand Development - Saucony's revenue exceeded 1 billion yuan in 2024 and continued its high growth momentum in the first half of 2025, becoming a popular international brand in major marathon events [2] - The brand is undergoing a comprehensive transformation in brand positioning, store design, and product lines to enhance its high-end sports brand image, with 155 stores in mainland China as of June 30, 2025 [2] - Saucony's running shoes have the highest wearing rate among international brands in key marathon events in China, reinforcing its influence in the professional running sector [2] Strategic Focus - Merrell is focusing on e-commerce and three core product lines: trail running, hiking, and creek walking, enhancing product performance, comfort, and durability through innovative technology [3] - The company is successfully implementing a "dual-engine" model with steady growth from the main brand and the professional sports segment, laying a foundation for continued net profit growth [3] - Looking ahead, the company plans to leverage Saucony's high-end positioning and Merrell's outdoor advantages to expand its influence in professional and niche markets [3]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved revenue, net profit attributable to shareholders, and operating cash flow of 6.838 billion, 914 million, and 774 million CNY respectively in H1 2025, with year-on-year growth of 7.1%, 21.5%, and a decline of 6.4% [2] - The net profit growth outpaced revenue growth primarily due to a loss of 106 million CNY from the sale of the KP brand in H1 2024; excluding this impact, the net profit attributable to shareholders increased by 6.4% year-on-year [2] - The company declared an interim dividend of 0.18 HKD per share, with a payout ratio of 50.0% and a dividend yield of 6.3% [2] Summary by Sections Business Overview - The mass sports segment (Tebu) and professional sports segment (Saucony, Myle) generated revenues of 6.052 billion and 785 million CNY respectively in 2024, reflecting year-on-year growth of 4.5% and 32.5% [3] - The growth in the mass sports segment was driven by strong online sales performance, while the professional sports segment benefited from robust offline retail performance, achieving double-digit same-store sales growth [3] - The number of stores for Tebu Children, Tebu, and Saucony in H1 2025 was 1,564, 6,360, and 155 respectively, with year-on-year changes of -3.3%, -8.3%, and 21.1% [3] - Saucony's brand recognition among Chinese consumers has significantly increased, leading to its top position among international brands in key marathon events [3] Financial Performance - The company's gross margin for H1 2025 was 45.0%, a year-on-year decline of 0.1 percentage points, with mass sports and professional sports gross margins at 43.6% and 55.2% respectively [4] - Operating profit margin (OPM) increased to 19.1%, a year-on-year increase of 0.4 percentage points, with operating profits for mass sports and professional sports at 1.208 billion and 79 million CNY respectively [4] - The net profit margin for H1 2025 was 13.4%, a year-on-year increase of 1.6 percentage points [4] Inventory and Cash Flow - The company's inventory increased slightly to 2.255 billion CNY in H1 2025, a year-on-year growth of 2.5% [5] - Accounts receivable rose to 4.844 billion CNY, a year-on-year increase of 9.6%, with an increase in turnover days by 22 days [5] - Accounts payable decreased to 2.621 billion CNY, a year-on-year decline of 6.1% [5] Investment Recommendations - Short-term investments in the main brand DTC strategy may negatively impact sales performance but are expected to enhance consumer interaction and brand loyalty in the long term [6] - Saucony plans to expand its product matrix and open new flagship and concept stores in key urban areas, which is anticipated to improve gross margins [6] - The company maintains its revenue forecasts for 2025, 2026, and 2027 at 14.286 billion, 15.558 billion, and 17.251 billion CNY respectively, with net profit forecasts of 1.374 billion, 1.511 billion, and 1.664 billion CNY [6]

Financial Data and Key Metrics Changes - The group's total revenue increased by 7.1% to JPY 6,838 million [6][9] - Operating profit rose by 9.1% to JPY 1,305 million, with an operating profit margin improvement of 0.4 percentage points to 19.19% [7][11] - Net profit for the first half of the year was JPY 914 million, reflecting a year-on-year increase of 21.5% [8][11] - Annualized return on equity increased by 3.3 percentage points to 19.7% [8] - Operating cash flows were CHF 774 million, with net cash increasing by 94.3% to CHF 1.913 billion [8] Business Line Data and Key Metrics Changes - Revenue from the XTEP core brand increased by 4.5% to JPY 6,053 million, while the professional sports division, including Saucony and Merrell, saw revenue growth of over 32% to JPY 785 million [7][16] - The mass market segment's gross profit increased by 4% to JPY 2,641 million, with a slight decrease in gross margin [15] - The professional sports division's operating profit surged nearly 2.4 times to JPY 79 million, with an operating profit margin improvement to 10% [17] Market Data and Key Metrics Changes - Over 300 marathons were held in China in the first half of the year, with more than 3 million participants, indicating a growing interest in running [22] - The group's brands maintained high wear rates in major marathon events, with Saucony achieving second place in overall wear rates at the Wuxi Marathon [23] Company Strategy and Development Direction - The company is focused on strengthening its core strategy of running, enhancing synergies among its brands, and expanding its product portfolio [21][33] - Plans include optimizing retail channel management, improving customer experience, and expanding into shopping malls and outlets [25][30] - The company aims to reinforce its position as China's leading running brand through flagship products and a professional to mass influence strategy [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the sports industry, supported by government investments in public health and sports activities [2][4] - The company plans to implement refined operational management to improve efficiency and create greater returns for investors [5][20] - The outlook remains positive, with expectations for continued growth in the running sector and a focus on sustainable development [32][34] Other Important Information - The company declared an interim dividend of HKD 0.18 per share, a year-on-year increase of 15.4%, maintaining a dividend payout ratio of 50% [8] - The company achieved an AA rating in the 2025 MSCI ESG rating, marking its fourth consecutive year of rating improvement [32] Q&A Session Summary Question: What are the expectations for the second half of the year? - Management indicated plans to capitalize on the peak season for marathons and running events, leveraging synergies between the XTAP core brand and Saucony to expand market share [4][33] Question: How is the company addressing the increase in inventory levels? - The increase in inventory is attributed to preparations for the peak season and the launch of new products, with expectations for inventory levels to return to a healthy state by year-end [14] Question: What are the company's plans for e-commerce growth? - E-commerce operations are expected to continue driving growth, with a focus on refining the product portfolio and enhancing supply chain capabilities [28]

Financial Data and Key Metrics Changes - The group's total revenue increased by 7.1% to JPY 6,838 million [7] - Operating profit rose by 9.1% to JPY 1,305 million, with an operating profit margin improvement of 0.4 percentage points to 19.19% [8] - Net profit for the first half of the year was JPY 914 million, reflecting a year-on-year increase of 21.5% [9] - Annualized return on equity increased by 3.3 percentage points to 19.7% [9] - Operating cash flows were CHF 774 million, with net cash increasing by 94.3% to CHF 1.913 billion [9] Business Line Data and Key Metrics Changes - Revenue from the XTEP core brand increased by 4.5% to JPY 6,053 million, while the professional sports division, including Saucony and Merrell, saw revenue growth of over 32% to JPY 785 million [8][16] - The mass market segment's gross profit increased by 4% to JPY 2,641 million, with a slight decrease in gross margin by 0.3 percentage points [15] - The professional sports division's operating profit surged nearly 2.4 times to JPY 79 million, with an operating profit margin improvement to 10% [17] Market Data and Key Metrics Changes - Over 300 marathons were held in China in the first half of the year, with more than 3 million participants, indicating a growing interest in running events [24] - The group's brands maintained high wear rates in major marathons, with Saucony achieving second place in overall wear rates at the Wuxi Marathon [25] Company Strategy and Development Direction - The company is focused on strengthening its core strategy of running, enhancing synergies among its brands, and expanding its product portfolio [23][35] - Plans include optimizing retail channel management, improving customer experience, and expanding into shopping malls and outlets [27] - The company aims to reinforce its position as China's leading running brand through flagship products and a professional to mass influence strategy [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the sports industry, supported by government investments in public health and sports activities [3][5] - The company plans to implement refined operational management to improve efficiency and create greater returns for investors [6] - The outlook remains positive, with expectations of continued growth driven by the popularity of running and marathon events in China [24][36] Other Important Information - The company declared an interim dividend of HKD 0.18 per share, a year-on-year increase of 15.4%, maintaining a dividend payout ratio of 50% [9] - The company achieved an AA rating in the 2025 MSCI ESG rating, marking its fourth consecutive year of rating improvement [34] Q&A Session Summary Question: What is the outlook for the running market in China? - Management highlighted the increasing popularity of marathons, with over 300 events and 3 million participants in the first half of the year, indicating strong growth potential in the running market [24] Question: How does the company plan to enhance its brand image? - The company will continue to reinforce its high-end sports brand image through flagship products and marketing campaigns, particularly for Saucony [31][36] Question: What are the expectations for the professional sports division? - The professional sports division is expected to maintain a mid to high single-digit operating profit margin for the full year, with continued product launches and marketing efforts [17][36]

Financial Performance - Group revenue reached RMB 6838 million, a 71% year-over-year increase[3] - Operating profit increased by 91% to RMB 1305 million, with an operating profit margin of 191%[3] - Profit attributable to ordinary equity holders of the company increased by 215% to RMB 914 million[3] - Basic earnings per share increased by 165% to RMB 346 cents[6] Segment Performance - Mass market revenue increased by 45% to RMB 6053 million[3, 11] - Professional sports revenue increased significantly by 325% to RMB 785 million[3, 11] Balance Sheet Highlights - Net cash and cash equivalents increased significantly by 943% to RMB 1913 million[7] - Shareholders' equity increased by 135% to RMB 9876 million[7] Brand Performance & Strategy - Xtep is the No 1 running brand in China, with leading overall wear rate in major marathons[18, 19] - Core Xtep brand revenue increased, with footwear accounting for 584% of revenue[75] - Saucony & Merrell brands experienced revenue growth, with overall revenue increasing by 325%[83] Sustainability - The company recycled approximately 3000 kg of clothes and reduced carbon emissions by over 10000 kg[52, 53]

特步国际(1368.HK)午后拉升一度涨近10%，报6.3港元，股价创5月29日以来新高，截至目前成交额放大至3亿港元。 消息面上，特步午间公布截至6月底止中期业绩显示，收入68.38亿元，同比上升7.14%；股东应占溢利9.14亿元，同比增长21.47%。中期息派18港仙(0.18 港元)，增加15.38%。 ...

Core Insights - The company reported a 7.1% increase in revenue from continuing operations to RMB 6.8376 billion for the first half of 2025 [1] - The main brand revenue grew by 4.5% to RMB 6.0525 billion, while the professional sports segment saw a significant increase of 32.5% to RMB 785.1 million [1] - Gross margin stood at 45.0%, with operating profit rising by 9.1% to RMB 1.3048 billion [1] - Shareholders' profit attributable to the company was RMB 913.6 million, reflecting a year-on-year growth of 21.5%, with earnings per share at 34.6 cents [1] - The board declared an interim dividend of 18.0 Hong Kong cents per share [1] Business Performance - As of June 30, 2025, the company operated 6,360 adult stores and 1,564 youth stores in mainland China, with 155 stores for Saucony [1] - E-commerce emerged as a key growth driver, accounting for over 30% of the main brand's revenue and achieving double-digit year-on-year growth [1] - The company's balance sheet remains robust, with net cash and cash equivalents increasing to RMB 1.9128 billion [1]

Core Insights - Xtep International reported a revenue of 6.84 billion yuan for the first half of 2025, representing a year-on-year growth of 7% [1] - The net profit for the same period was 914 million yuan, showing an increase of 21.5% [1] - The main brand revenue reached 6.053 billion yuan, with a growth of 4.5%, while the professional sports segment saw a significant increase of 32.5% to 1.85 billion yuan [1] Company Strategy - The company focuses on a running-centric strategy, reinforcing its position as a leading running brand in China [1] - Xtep's performance in major marathon events in China highlights its market leadership and the effectiveness of its "professional influences the masses" strategy [1] - The brand successfully penetrated the mass market, contributing to the strong development of its main brand and the subsidiary brand Saucony [1] Partnerships and Events - In the first half of 2025, Xtep International established partnerships with 27 marathon and road running events in China [1] - This includes collaborations with prestigious events such as the World Athletics Platinum Label Xiamen Marathon and several Gold Label events [1]

Core Viewpoint - Xtep International reported a 7.1% increase in revenue from continuing operations to RMB 6.838 billion in the first half of the year, driven by growth in the Xtep main brand and the professional sports segment [1] Group 1: Revenue Growth - Revenue from the Xtep main brand increased by 4.5% to RMB 6.053 billion [1] - Revenue from the professional sports segment grew by 32.5% to RMB 785 million [1] Group 2: Profit and Dividends - After accounting for losses from discontinued operations (K·SWISS and Palladium), the profit attributable to ordinary shareholders for the first half of 2025 is expected to reach RMB 914 million, representing a growth of 21.5% [1] - The board declared an interim dividend of HKD 0.18 per share, with an option for shareholders to receive shares in lieu of cash, resulting in a dividend payout ratio of 50.0% [1]