Investment Rating - The report maintains a "Buy" rating for the company [4][9] Core Views - The company has adjusted its earnings forecast for 2025-2027, expecting earnings per share of 0.49, 0.48, and 0.55 RMB respectively, with a target price of 6.57 HKD based on a 12x PE valuation for 2026 [3][9] - The main brand's revenue growth was slightly below market expectations, attributed to intensified competition and a strategic shift towards direct-to-consumer (DTC) sales [8][9] - The professional sports segment, primarily driven by the Saucony brand, showed robust growth of 30.8%, although the overall gross margin declined by 1.7 percentage points due to a higher proportion of apparel sales [8] Financial Summary - Revenue projections for the company are as follows: - 2023: 14,346 million RMB - 2024: 13,577 million RMB - 2025: 14,151 million RMB - 2026: 14,927 million RMB - 2027: 16,074 million RMB - Year-on-year growth rates for revenue are projected at 10.9%, -5.4%, 4.2%, 5.5%, and 7.7% respectively [3][11] - Operating profit is expected to increase from 1,580 million RMB in 2023 to 2,256 million RMB in 2027, with corresponding growth rates of 7.9%, 24.4%, 2.7%, 2.2%, and 9.3% [3][11] - Net profit attributable to the parent company is forecasted to rise from 1,030 million RMB in 2023 to 1,552 million RMB in 2027, with growth rates of 11.8%, 20.2%, 10.8%, -2.3%, and 15.8% [3][11] - The company’s gross margin is projected to remain stable, with slight fluctuations from 42.2% in 2023 to 43.3% in 2027 [3][11] Market Performance - The company's stock price as of March 26, 2026, was 4.78 HKD, with a 52-week high of 6.64 HKD and a low of 4.26 HKD [4] - The H-share market capitalization is reported at 13,413 million HKD [4]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][7][41] Core Views - The company is expected to achieve a double-digit growth in net profit by 2025, with revenue projected to increase by 4.2% to 14.15 billion yuan and net profit expected to rise by 10.8% to 1.37 billion yuan [1][36] - The main brand's revenue growth is steady at 1.5%, while the professional sports brand shows significant growth of 30.8% [2][36] - The company is focusing on enhancing its direct-to-consumer (DTC) strategy and expanding its global presence, with a notable increase in overseas membership and cross-border e-commerce growth [2][36] Summary by Relevant Sections Financial Performance - In 2025, the company's revenue is expected to reach 14.15 billion yuan, with a year-on-year growth of 4.2% and a net profit of 1.37 billion yuan, reflecting a 10.8% increase [1][37] - The gross margin is projected to decline by 0.4 percentage points to 42.8%, primarily due to increased subsidies and discount rates [1][36] - Operating profit margin is expected to decrease by 0.2 percentage points to 14.3%, while the net profit margin is anticipated to improve by 0.6 percentage points to 9.7% due to government subsidies and investment income [1][36] Brand Performance - The main brand's revenue is expected to grow by 1.5% to 12.52 billion yuan, with a decline in operating profit by 1.8% to 1.92 billion yuan due to increased logistics and e-commerce platform costs [2][36] - The professional sports brands, including Saucony and Merrell, are projected to achieve a revenue increase of 30.8% to 1.64 billion yuan, with operating profit rising by 46.4% to 115 million yuan [2][36] Future Outlook - For 2026, the company anticipates single-digit revenue growth and aims to maintain high single-digit profit margins, with professional sports brands expected to grow by 20-30% [3][36] - The company plans to invest over 100 million yuan in one-time expenses to enhance DTC initiatives and new equity plans [3][36] - The target price has been adjusted to 5.40-5.90 HKD, reflecting a decrease from the previous estimate of 6.10-6.60 HKD, while maintaining the "Outperform the Market" rating [7][36]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is expected to face short-term cost pressures but anticipates profit elasticity in 2027 [1] - In 2025, the company achieved revenue of 14.151 billion, net profit of 1.372 billion, and operating cash flow of 0.952 billion, with year-on-year growth of 4.2%, 10.8%, and -22.48% respectively [2] - The company plans to distribute a final dividend of HKD 0.095 per share, along with an interim dividend of HKD 0.18 per share, resulting in a total payout ratio of 50.4% and a dividend yield of 5.8% [2] Revenue and Profit Analysis - The revenue for the mass sports segment (Xtep) and professional sports segment (Saucony, Maile) in 2025 is projected to be 12.515 billion and 1.64 billion respectively, with year-on-year growth of 1.5% and 31.2% [3] - The online sales for the main brand saw a year-on-year increase of 40%, contributing significantly to the growth of the mass sports segment [3] - The company’s gross margin for 2025 is expected to be 42.8%, a decrease of 0.4 percentage points year-on-year, while the net profit margin is projected to improve by 0.6 percentage points to 9.7% [4] Inventory and Cash Flow - As of the end of 2025, the company's inventory increased to 1.829 billion, a year-on-year rise of 14.6%, with inventory turnover days extending to 77 days [5] - The company’s accounts receivable reached 5.186 billion, reflecting a year-on-year growth of 3.49% [5] Investment Recommendations - The company is expected to enhance operational efficiency and store performance through its DTC strategy, which will foster deeper consumer engagement and brand loyalty [6] - Revenue forecasts for 2026 and 2027 have been adjusted downwards to 14.883 billion and 15.878 billion respectively, with net profit estimates revised to 1.233 billion and 1.582 billion [6] - The projected earnings per share (EPS) for 2026 and 2027 are adjusted to 0.44 and 0.56 respectively, with a target price based on a PE ratio of 9 for 2026 [7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Insights - The company reported a revenue of 14.15 billion, a year-on-year increase of 4.2%, and a net profit attributable to shareholders of 1.37 billion, up 10.8% year-on-year. Excluding the impact of losses from divested brands, the net profit increased by 5.1% year-on-year [1] - The main brand, Xtep, achieved a revenue increase of 1.5% to 12.52 billion, despite a slight slowdown due to the conversion of over 100 stores to DTC and inventory adjustments. Xtep maintained its leading position in the running sector in China [2] - The company is focusing on optimizing its channel strategy, with a net reduction of 25 adult stores to 6,357, while enhancing store image and expanding new store formats [3] - Saucony's revenue grew by 30.8% to 1.64 billion, with significant growth in first and second-tier cities. The brand is advancing its high-end strategy and expanding its product line [4] - Profit forecasts indicate a net profit of 1.24 billion in 2026, a decrease of 9.5%, followed by increases of 11.7% and 11.8% in 2027 and 2028, respectively. The company is expected to maintain a dividend payout ratio of 50% [5] Financial Summary - For 2025, the company expects revenue of 14.15 billion, with a year-on-year growth of 4.23%. The net profit is projected at 1.37 billion, reflecting a 10.75% increase [6] - The earnings per share (EPS) for 2025 is estimated at 0.49, with a price-to-earnings (P/E) ratio of 8.64 [6] - The company’s total assets are projected to reach 16.9 billion by 2025, with total liabilities of 6.7 billion [11]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company is expected to face short-term cost pressures but anticipates profit elasticity in 2027 [1] - The company plans to distribute a final dividend of HKD 0.095 per share, along with an interim dividend of HKD 0.18 per share, resulting in a total dividend payout ratio of 50.4% and a dividend yield of 5.8% [2] - The revenue and net profit for 2025 are projected to be HKD 14.151 billion and HKD 1.372 billion, respectively, with a year-on-year growth of 4.2% and 10.8% [2] Summary by Sections Revenue and Profitability - In 2025, the company achieved revenue of HKD 14.151 billion, a year-on-year increase of 4.2%, and a net profit of HKD 1.372 billion, reflecting a 10.8% growth [2] - The operating profit margin (OPM) is projected to be 14.27%, a slight decrease of 0.23 percentage points year-on-year [4] - The gross profit margin for 2025 is 42.8%, down 0.4 percentage points from the previous year [4] Brand and Product Performance - The main drivers of growth are the brands Saucony and e-commerce, with Saucony expanding its product categories and focusing on overseas markets [3] - Revenue from the mass sports segment (Xtep) and professional sports segment (Saucony, Maile) for 2025 is expected to be HKD 12.515 billion and HKD 1.64 billion, respectively, with year-on-year growth of 1.5% and 31.2% [3] - The company is enhancing its brand positioning and product innovation, particularly in high-end flagship stores in first- and second-tier cities [3] Inventory and Cash Flow - As of the end of 2025, the company's inventory increased to HKD 1.829 billion, a 14.6% rise year-on-year, with inventory turnover days extending to 77 days [5] - The net cash flow from operating activities is projected to be HKD 952.41 million for 2025 [11] Future Projections - Revenue forecasts for 2026 and 2027 have been adjusted down to HKD 14.883 billion and HKD 15.878 billion, respectively, with a new forecast for 2028 set at HKD 17.005 billion [6] - The projected net profit for 2026 and 2027 has been revised to HKD 1.233 billion and HKD 1.582 billion, respectively, with a new forecast for 2028 at HKD 1.701 billion [7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Insights - The company reported a revenue of 14.15 billion, a year-on-year increase of 4.2%, and a net profit attributable to shareholders of 1.37 billion, up 10.8% year-on-year. Excluding the impact of losses from divested brands, the net profit increased by 5.1% year-on-year [1] - The main brand, Xtep, achieved a revenue of 12.52 billion, a 1.5% year-on-year increase, despite a slight slowdown due to the conversion of over 100 stores to DTC and inventory adjustments. The brand maintained its leading position in the running sector in major cities [2] - The company is focusing on optimizing its channel strategy, with a net closure of 25 adult stores and a net closure of 96 youth stores, while enhancing store image and expanding DTC strategies [3] - Saucony's revenue grew by 30.8% to 1.64 billion, with a significant increase in store openings and a focus on high-end market strategies [4] - Profit forecasts for the next three years indicate a net profit of 1.24 billion in 2026, a decrease of 9.5%, followed by increases of 11.7% and 11.8% in 2027 and 2028, respectively. The company is expected to maintain a dividend payout ratio of 50% [5] Financial Summary - For 2025, the company expects a revenue of 14.15 billion, with a year-on-year growth of 4.23%. The net profit is projected at 1.37 billion, reflecting a 10.75% increase [6] - The earnings per share (EPS) for 2025 is estimated at 0.49, with a P/E ratio of 8.64 [6] - The company’s total assets are projected to reach 16.9 billion by 2025, with total liabilities of 6.7 billion [11]

Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company, Xtep International, reported a revenue growth of 4.2% to 14.151 billion yuan in 2025, with a net profit attributable to shareholders increasing by 10.8% to 1.372 billion yuan, indicating overall stable performance [1] - The main brand focuses on a running strategy, with the revenue from the mass sports segment (Xtep) growing by 1.5% to 12.515 billion yuan, although the gross margin slightly decreased by 0.6 percentage points to 41.2% due to increased promotional subsidies and discount rates [1] - The professional sports segment (Saucony & Myle) saw a significant revenue increase of 30.8% to 1.636 billion yuan, with operating profit rising by 46.4% to 114 million yuan, benefiting from strong retail performance and effective cost management [2] Financial Performance - As of the end of 2025, the company's inventory was 1.829 billion yuan, up 14.6% year-on-year, with inventory turnover days increasing by 9 days to 77 days [3] - The net cash flow from operating activities for 2025 was 952 million yuan, reflecting a stable cash flow situation [7] - The company expects a revenue growth of 5.4% in 2026, with a projected net profit of 1.260 billion yuan, a decrease of 8.1% year-on-year due to short-term expense pressures [7] Future Outlook - The company aims to enhance its direct-to-consumer (DTC) strategy, with a focus on optimizing retail efficiency and expanding its overseas business, which is expected to continue growing rapidly [6] - The Xtep Youth segment has been rebranded and is expected to achieve long-term growth in the youth sports market with innovative products [6] - The company anticipates maintaining a strong position in the professional running sector, with Saucony's operational scale gradually expanding [7]

Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company, Xtep International, reported a revenue growth of 4.2% to 14.151 billion yuan in 2025, with a net profit attributable to shareholders increasing by 10.8% to 1.372 billion yuan, indicating overall stable performance [1][7] - The main brand, Xtep, focused on a running strategy, achieving a revenue growth of 1.5% to 12.515 billion yuan, although the gross margin slightly decreased by 0.6 percentage points to 41.2% due to increased promotional subsidies and discount rates [1] - The professional sports segment, including Saucony and Myle, saw a significant revenue increase of 30.8% to 1.636 billion yuan, with an operating profit growth of 46.4% to 114 million yuan, benefiting from strong retail performance and effective cost management [2] Financial Performance - The company's operating cash flow for 2025 was 952 million yuan, with inventory at 1.829 billion yuan, reflecting a year-on-year increase of 14.6% [3][7] - The net profit margin improved by 0.6 percentage points to 9.7%, with a dividend payout ratio of 50.4% [1] - The company expects a revenue growth of 5.4% in 2026, with a projected net profit of 1.260 billion yuan, a decrease of 8.1% year-on-year due to short-term expense pressures [7] Future Outlook - The company aims to enhance its direct-to-consumer (DTC) strategy, with a focus on optimizing retail efficiency and expanding its overseas business, which is expected to continue its rapid growth [6][7] - The Xtep youth segment, rebranded as "Xtep Youth," is expected to drive long-term growth in the youth sports market with innovative products [6]

| 香港中央證券登記有限公司 | | | --- | --- | | 灣仔皇后大道東183號 | | | 股份過戶登記處及其地址 | 合和中心17樓 | | 1712–1716號舖 | | | 香港 | | | 代扣所得稅信息 | | | 股息所涉及的代扣所得稅 | 不適用 | | 發行人所發行上市權證/可轉換債券的相關信息 | | | 發行人所發行上市權證/可轉換債券 | 不適用 | | 其他信息 | | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公佈刊發日期，本公司執行董事為丁水波先生 、丁美清女士、丁明忠先生及楊鷺彬先生；非執行董事為陳偉成先生；及獨立 | | | 非執行董事為鮑明曉博士、胡家慈博士及陳綺華博士。 | | EF003 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，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 | 公告全部或任何部份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。 | | --- | --- | | | 股票發行人現金股息（可選擇以股份代替）公告 | | 發行人名稱 | 特步國際控股有限公司 | ...

Financial Performance - Revenue increased by 4.2% to RMB 14,151.1 million, driven by the strong performance of the Xtep brand and a 30.8% growth in the professional sports segment[3]. - Xtep brand revenue rose by 1.5% to RMB 12,515.1 million, while the professional sports segment revenue grew significantly by 30.8% to RMB 1,636.0 million[3]. - Operating profit increased to RMB 2,018.8 million, with a substantial 46.4% growth in the professional sports segment's operating profit to RMB 114.5 million[3]. - Profit attributable to ordinary shareholders reached RMB 1,371.6 million, marking a 10.8% increase[3]. - Gross profit margin for 2025 was 42.8%, slightly down from 43.2% in 2024[43]. - Basic earnings per share for 2025 were RMB 51.35, up from RMB 48.67 in 2024[35]. - The group's total revenue for the year was approximately RMB 14.2 billion, a year-on-year increase of 4.2% compared to RMB 13.6 billion in 2024[116]. - The professional sports segment saw a significant revenue increase of 30.8%, reaching RMB 1,636.0 million, while the mass sports segment grew by 1.5%[114]. - The group's net profit attributable to equity holders rose by 10.8% to RMB 1,371.6 million, improving the net profit margin from 9.1% to 9.7%[135]. Cash Flow and Assets - Net cash surged by 73.4% to RMB 1,707.0 million, with net asset value per share increasing by 12.3% to RMB 3.64[3]. - As of December 31, 2025, the group's cash and cash equivalents increased by approximately RMB 477.9 million to about RMB 3,457.1 million, compared to RMB 2,979.2 million on December 31, 2024[147]. - The total assets of the group as of December 31, 2025, amounted to RMB 16,898.8 million, an increase from RMB 15,968.1 million in 2024, with total liabilities decreasing to RMB 6,696.3 million from RMB 7,265.6 million[150]. - The net cash flow from operating activities for the year ended December 31, 2025, was RMB 952.4 million, down from RMB 1,228.1 million in 2024, reflecting ongoing efforts to enhance operational efficiency[148]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.095 per share, resulting in a total annual payout ratio of 50.4%[3]. - The total dividend for 2025 is proposed at HKD 0.275 per share, with a payout ratio of 50.4%, down from 138.2% in 2024[136]. Market Presence and Strategy - As of December 31, 2025, the group operated 6,357 adult Xtep stores and 1,488 youth Xtep stores in mainland China and abroad[3]. - The company maintains a strong focus on running, targeting both mass and premium markets[28]. - The company is expanding its product matrix to drive business growth and strengthen its leadership in the running sector[51]. - The company plans to implement a Direct-to-Consumer (DTC) model in 2025 to enhance consumer interaction and brand loyalty[108]. - The company is actively expanding its market presence through strategic initiatives and product innovation[175]. Product Development and Innovation - The "160X" champion running shoe series has helped numerous athletes break records, solidifying the company's leadership in the running sector[32]. - The flagship "2000 Kilometers" running shoe series saw strong sales performance, achieving a doubling in sales in 2025[80]. - The introduction of the "Qingyun" flagship running shoe series aims to expand the mass market with a focus on high cost-performance and comfort[64]. - The company launched two high-performance outdoor product lines in 2025, including the "Feishi" hiking shoes and "Mountain Cat" trail running shoes, enhancing retail sales growth[71]. - The brand's flagship running shoes utilize advanced foam technology, achieving over 85% rebound and a 38.5% improvement in slip resistance[59]. Community Engagement and Sponsorship - The company sponsored 74 major running events in 2025, including the Xiamen Marathon, showcasing its commitment to the development of running culture in China[66]. - The partnership with Tsinghua x-lab focused on sustainable sports and youth growth solutions, completing a study with 330,000 sets of children's foot data[85]. - The company donated sports equipment and cash valued at over RMB 64 million to various charitable projects in 2025[101]. Sustainability and Corporate Governance - Xtep's MSCI ESG rating was upgraded to "A," reflecting its commitment to sustainable practices and social responsibility[97]. - The company launched a waste textile recycling initiative, recovering 51.3 tons of production scraps, contributing to a circular economy[98]. - The company has a strong focus on environmental, social, and corporate governance, receiving accolades in this area[180]. Employee and Operational Insights - As of December 31, 2025, the company employed approximately 8,800 staff, with production employees making up 58.8% of the workforce[105]. - The company’s self-owned production facility in Shishi, Fujian, spans 170,000 square meters and has enhanced production capacity to meet growing market demand[104]. - The company emphasizes smart manufacturing and information management to improve operational efficiency and product quality[194]. Investor Relations and Market Communication - The company engaged over 80 investors and analysts during a reverse roadshow showcasing R&D and retail management capabilities[167]. - The company organized 36 reverse roadshows in 2025 to enhance understanding of its operations and showcase retail experiences[175]. - The company aims to enhance investor relations and communication through various investor strategy meetings scheduled throughout 2025[173].