香 港 交易 及 結 算 所 有限 公 司 以 及香 港 聯 合 交 易所 有 限 公 司 對本 公 佈 的 內容 概 不 負責 ， 對 其 準 確性 或 完 整 性亦 不 發 表 任 何聲 明 ， 並 明 確表 示 ， 概 不對 因 本 公佈 全 部 或 任 何部 分 內 容 而產 生 或 因 倚 賴該 等 內 容 而 引致 的 任 何 損失 承擔任何責任。 Xtep International Holdings Limited 特 步 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1368） 調整可換股債券的換股價 根 據 二 零 二 一 年 可 換 股 債 券 、 二 零 二 四 年 可 換 股 債 券 及 二 零 二 五 年 可 換 股 債券（ 統 稱「可 換 股 債 券」）的 條 款 及 條 件， 並 因 本 公 司 宣派 及 派 付 二 零 二五年中期股息，(i)二零二一年可換股債券換股價將由8.1972港元調整至 7.9385 港 元 ； (ii ) 二 零 二 四 年 可 換 股 債 券 換 股 價 將 由 5. 4028 港 元 調 整 至 5.2323港元； ...

Group 1 - The core brand of Xtep recorded low single-digit sales growth year-on-year in Q3 2025, maintaining the same growth rate as Q1 and Q2 [1] - Sales performance was better in July and August compared to September, which was affected by warmer weather [1] - Online sales growth outperformed offline, with online channels maintaining double-digit year-on-year growth [1] Group 2 - Saucony achieved over 20% year-on-year growth in Q3 2025, with offline channels showing strong performance exceeding 30% growth [2] - The company plans to open 30 to 50 new stores in the year, with 16 new stores opened in Q3 2025 [2] - The target price for Xtep remains at HKD 7.8, with a "buy" rating reaffirmed due to expected growth in sports equipment demand [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The main brand of the company has shown steady growth in Q3 2025, while the subsidiary brand, Saucony, continues to maintain rapid growth [7] - The company has a healthy inventory turnover of four to four and a half months, indicating stable retail sales despite external factors [7] - The company is expanding its presence in the outlet channel and overseas markets, enhancing its competitive edge [7] - The company is focusing on product iteration and category expansion to drive growth in high-end brands [7] - Long-term growth potential is supported by continuous R&D investment and a strong brand image [7] Financial Summary - Revenue projections for 2025 are estimated at 14,486.83 million RMB, with a year-on-year growth rate of 6.70% [6] - Net profit for 2025 is projected to be 1,384.97 million RMB, reflecting a year-on-year growth of 11.84% [6] - Earnings per share for 2025 is expected to be 0.49 RMB [6] - The company’s return on equity (ROE) is projected to be 13.73% in 2025 [6] - The price-to-earnings (P/E) ratio is expected to be 10.75 in 2025 [6]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The retail data for the company remains stable, with the main brand's revenue showing low single-digit growth year-on-year. Discounts range from 7% to 75%, and the inventory turnover ratio is healthy at 4 to 4.5 months. The subsidiary brand, Saucony, has seen revenue growth exceeding 20% year-on-year [2][6]. - The main brand's growth is primarily driven by the running category, while Saucony is expected to return to high growth after a short-term adjustment. Offline channels are anticipated to maintain high growth, while e-commerce growth is slightly weaker due to the company's strategy of reducing low-priced products. Future growth for Saucony is expected to accelerate as the company focuses on opening stores in key urban areas and enhancing brand presence [8]. - Overall, the running trend supports steady growth for the main brand, and despite short-term adjustments for Saucony, the long-term growth potential remains strong. The company is projected to achieve net profits of 1.41 billion, 1.58 billion, and 1.75 billion yuan for the years 2025 to 2027, corresponding to price-to-earnings ratios of 10, 9, and 8 times respectively [8][10]. Summary by Sections Retail Performance - The main brand's revenue growth is low single-digit year-on-year, with a stable discount range and healthy inventory turnover [2][6]. Saucony Brand Performance - Saucony's revenue growth exceeds 20% year-on-year, with expectations for future acceleration in growth as the brand focuses on key urban markets [8]. Financial Projections - Projected net profits for 2025, 2026, and 2027 are 1.41 billion, 1.58 billion, and 1.75 billion yuan, with corresponding P/E ratios of 10, 9, and 8 times [10].

Core Viewpoint - In Q3 2025, the main brand Xtep experienced low single-digit revenue growth, with online sales continuing to outpace offline, and children's products growing faster than adult products [1][2][3] - The terminal discount level remained stable at 7-7.5, and the inventory turnover days were around 4-4.5 months, indicating a healthy inventory level [1][2] - The Saucony brand saw over 20% revenue growth, with offline sales maintaining a strong growth momentum of over 30% [1][3] Group 1: Xtep Main Brand Performance - In Q3 2025, Xtep's retail sales showed low single-digit growth, with online sales maintaining double-digit growth while offline sales remained flat [2][3] - The children's segment outperformed the adult segment, with the children's brand upgraded to "Xtep Youth" in August, promoting the concept of "scientific sports equipment for growth" [2] - The company is focusing on upgrading store images, with over 70% of new image stores, and plans to launch 70-100 selected outlet stores in the next two years [2][3] Group 2: Saucony Brand Performance - Saucony's revenue grew over 20% in Q3 2025, with offline sales expected to grow over 30% [1][3] - The company opened multiple high-quality offline stores in key urban areas, adding 16 new stores in Q3, bringing the total to over 170 stores by the end of Q3 [3] - The e-commerce channel is undergoing adjustments, focusing on reducing low-priced and heavily discounted products, with plans to open 30-50 new offline stores in the fourth quarter [3][4] Group 3: Future Outlook - For Q4 2025, Xtep plans to reclaim distribution rights for approximately 400-500 stores by mid-2026, which is expected to impact revenue in the short term but enhance brand influence and operational quality in the long term [4] - Saucony aims to maintain high growth momentum through brand promotion and product expansion, with an expected improvement in profit margins [4] - The company maintains a profit growth guidance of over 10% for 2025, with projected revenues of 143.2 billion, 152.6 billion, and 163.7 billion for 2025-2027, reflecting year-on-year growth of 5.5%, 6.6%, and 7.2% respectively [4]

Core Viewpoint - The company reported steady operational performance in Q3 2025 despite fluctuations in the retail environment, with the main brand's retail revenue showing low single-digit growth year-on-year, driven by functional products and strong sales in running and outdoor categories [1][2]. Group 1: Main Brand Performance - The main brand's retail revenue grew low single digits year-on-year, primarily driven by functional products, with double-digit growth in running and outdoor categories [1]. - Retail discounts for the main brand remained stable at 70-75%, indicating a consistent pricing strategy [1]. - Channel inventory turnover at the end of September was healthy, ranging from 4 to 4.5 months [1]. Group 2: Saucony Brand Growth - The Saucony brand experienced over 20% year-on-year growth in retail revenue, with offline sales increasing by over 30% and average store efficiency exceeding 400,000 yuan per month [2]. - The management plans to continue expanding offline channels and capitalize on online promotional events in Q4 2025, aiming for a 30%+ year-on-year revenue increase for Saucony [2]. - The brand opened 16 new stores in key commercial areas, bringing the total to over 170 stores by the end of September [2]. Group 3: Channel Transformation and Future Plans - The company is actively optimizing its offline channel strategy, planning to convert over 100 stores to a Direct-to-Consumer (DTC) model in Q4 2025 and 2026 [2]. - The company is accelerating its presence in shopping malls and outlet channels, with plans to open 70-100 selected outlet stores between 2025 and 2026 [2]. - Current monthly sales for opened outlet stores have reached over 1 million yuan [2]. Group 4: Earnings Forecast and Valuation - The company maintains its EPS forecasts for 2025 and 2026 at 0.50 and 0.55 yuan, respectively [2]. - The current stock price corresponds to 11 and 10 times the 2025 and 2026 P/E ratios, with a target price of 7.23 HKD, indicating a potential upside of 24.7% from the current price [2].

Core Insights - The main brand of the company showed stable performance in Q3 2025, with a low single-digit year-on-year growth in overall channel revenue, consistent with Q2's performance, meeting expectations. Online sales outperformed offline, maintaining double-digit growth, while children's products outperformed adult products [1][2] - The Saucony brand experienced rapid growth, with over 20% year-on-year growth in overall channel revenue in Q3, and offline revenue increasing by over 30%. The company opened 16 new stores, primarily in key business districts of first and second-tier cities, maintaining an annual store opening target of 30-50 [1][2] Revenue and Inventory Management - The main brand's inventory turnover ratio was between 4-4.5 months in Q3, with discount levels maintained at 7-7.5%, indicating healthy inventory management and low discount pressure. Saucony's inventory and discount levels were also within controllable ranges, allowing flexibility for Q4 promotions [2] - The company is continuously innovating its channel strategy, increasing its presence in outlet formats. The new store formats, including the 9th generation stores and leading stores, now account for over 70% of the total store count, with a focus on high-end outlet malls [2] Strategic Initiatives - The company is optimizing its multi-brand matrix by planning to divest its fashion sports brand in 2024, focusing on core running business to enhance resource allocation. The DTC transformation is set to begin in 2025, aiming for a more efficient and high-quality channel layout [3] - The company plans to reclaim approximately 100 stores in Q4, with a total of 400 stores by the end of 2025, involving a capital expenditure of around 400 million yuan. This move is expected to enhance long-term channel competitiveness and enable the company to respond quickly to changes in terminal demand [2][3]

Core Insights - The company reported a low single-digit year-on-year growth in retail sales for its main brand in Q3 2025, with retail discount levels between 70% to 75% and inventory turnover ranging from four to four and a half months [1] - Saucony's retail sales, including both online and offline channels, exceeded 20% year-on-year growth [1] - The company has made significant strides in brand building, partnering with international events and athletes, and providing official gear for major competitions [1] Brand Development - The company has positioned itself as a global partner for the 12th World Games in 2025, providing exclusive official gear [1] - At the World Athletics Championships, athletes showcased the company's new racing shoes, highlighting its commitment to professional equipment [1] - The company continues to invigorate the Chinese marathon industry by supporting athletes' daily training with professional gear [1] Focus on Youth Development - The company has launched antibacterial children's pants to support young dancers and is collaborating with various authoritative institutions to promote scientific growth [1] - It has published the "Golden Blue Book on Youth Sports Growth" and established a "Youth Sports Growth Joint Laboratory" to implement its findings [1] - The company offers foot testing, equipment adaptation, and sports guidance services to promote scientific sports practices among families [1] Saucony's Growth - Saucony has become one of the top four running shoe brands globally, experiencing a turnaround since the company took over its operations in mainland China and Hong Kong in 2019 [2] - The brand has expanded its product lines and completed its offline presence in first-tier and core second-tier cities, with 155 stores in mainland China as of June [2] - Since re-launching its direct operations in China, Saucony has achieved a compound annual growth rate exceeding 100%, with revenue expected to surpass 1 billion RMB in 2024 [2] Financial Projections - The company maintains its profit forecasts for 2025-2027, expecting revenues of 14.6 billion RMB, 15.4 billion RMB, and 16.5 billion RMB respectively [2] - Projected net profits for the same period are 1.4 billion RMB, 1.5 billion RMB, and 1.7 billion RMB, with corresponding EPS of 0.50 RMB, 0.54 RMB, and 0.61 RMB [2] - The company maintains a "buy" rating based on these projections [2]

Group 1 - The main brand of the company, Xtep, showed steady growth in Q3, with retail sales experiencing low single-digit growth year-on-year, which is a slowdown compared to the same period last year [1] - The discount level for Xtep was between 70% to 75%, remaining stable compared to the previous quarter but slightly deepened year-on-year [1] - The inventory turnover ratio is estimated to be between 4 to 4.5 months, indicating a healthy inventory management [1] Group 2 - Saucony maintained a rapid growth rate in Q3, with sales increasing by over 20% year-on-year, although the growth rate has slowed compared to Q1 and Q3 of the previous year [2] - The sales growth in Q3 is attributed to the overall consumer environment and the company's strategic adjustment in e-commerce product structure and discount control since Q2 [2] - The company expects to achieve over 30% sales growth for the entire year of 2025, with a potential for revenue to double in the next three years [2] Group 3 - The company maintains its earnings forecast, projecting earnings per share of 0.49, 0.56, and 0.62 RMB for 2025-2027 [3] - Based on comparable companies, a 15x PE valuation for 2025 is applied, resulting in a target price of 8.01 HKD [3] - The company maintains a "buy" rating based on its growth prospects [3]

Core Viewpoint - The company maintains its full-year forecasts, expecting positive revenue growth for the main brand and over 30% revenue growth for Saucony in 2025, with overall group profit growth of approximately 10% [2]. Group 1: Financial Projections - The company forecasts net profit attributable to shareholders for 2025-2027 to be RMB 1.37 billion, RMB 1.49 billion, and RMB 1.61 billion respectively, assigning a target price of HKD 8.74 for 2026 based on a 15X PE ratio [1]. - The company anticipates that by the end of 2025, inventory levels will decrease to below RMB 2 billion, indicating a healthy inventory status [2]. - The company expects a dividend payout ratio of no less than 50% for the year [2]. Group 2: Brand Performance - In Q3, the main brand experienced low single-digit growth in revenue, impacted by weather disturbances, while functional products performed exceptionally well [1]. - The company reported that Saucony's revenue in Q3 grew by over 20% year-on-year, with offline sales growth outpacing online sales due to strategic adjustments in e-commerce operations [1]. Group 3: Market Dynamics - The company noted that the e-commerce growth rate is expected to outperform offline growth, particularly in the running and functional product segments, which have a competitive advantage [1].