Core Viewpoint - The company reported a revenue of 6.838 billion, net profit of 914 million, and operating cash flow of 774 million for H1 2025, showing a year-on-year growth of 7.1%, 21.5%, and a decline of 6.4% respectively, with net profit growth primarily driven by the sale of KP brand leading to a loss of 106 million in H1 2024 [1] Financial Performance - The company's gross margin for H1 2025 was 45.0%, a slight decrease of 0.1 percentage points year-on-year, with the mass sports and professional sports segments showing gross margins of 43.6% and 55.2% respectively [2] - Operating profit margin (OPM) increased to 19.1%, up 0.4 percentage points year-on-year, with operating profits for mass sports and professional sports segments at 1.208 billion and 79 million respectively, reflecting increases of 1.5% and 236.8% [2] - The company’s net profit margin improved to 13.4%, up 1.6 percentage points year-on-year, attributed to a decrease in administrative expense ratio by 0.8 percentage points [2] Business Segments - The mass sports segment (Xtep) and professional sports segment (Saucony, Myle) generated revenues of 6.052 billion and 785 million respectively in 2024, with year-on-year growth of 4.5% and 32.5% [1] - The number of stores for H1 2025 included 1,564 for Xtep Kids, 6,360 for Xtep, and 155 for Saucony, with net decreases of 218 and 142 for Xtep and Xtep Kids, while Saucony saw a net increase of 27 stores [1] - E-commerce business showed strong growth, achieving double-digit growth in H1 2025, accounting for over 30% of Xtep's main brand revenue [1] Strategic Initiatives - The company is focusing on a direct-to-consumer (DTC) strategy to enhance consumer interaction and brand loyalty, despite short-term negative impacts on sales [2] - Saucony plans to expand its product matrix and open new flagship and concept stores in key urban areas, aiming to improve gross margins post-acquisition of Saucony and Myle [2] - The company aims to streamline operations by selling the KP brand, reducing financial drag, and concentrating on its three main brands [2]

Core Viewpoint - The company's 1H25 performance met expectations, with a 7% increase in revenue to 6.8 billion and a 6% increase in profit to 910 million, indicating strong growth in the running and children's categories [1][3] Financial Performance - Revenue from continuing operations increased by 7% to 6.8 billion, while profit rose by 6% to 910 million, or a 21% increase when excluding losses from divested businesses in 1H24 [1] - The company declared an interim dividend of 0.18 HKD per share, corresponding to a payout ratio of approximately 50% [1] - Gross margin slightly decreased by 0.1 percentage points, with the main brand's gross margin down by 0.3 percentage points due to increased competition in online channels and a higher proportion of children's business [3] Brand Performance - The main brand's revenue grew by 5% to 6.1 billion, with children's products outperforming adult categories and online sales achieving double-digit growth, contributing over 30% to main brand revenue [1] - The professional sports segment (Saucony and Merrell) saw a 33% revenue increase to 790 million, contributing 11% to total revenue [2] Strategic Initiatives - The company is focusing on optimizing channels and accelerating the layout of shopping centers and outlet channels, closing a net of 22 adult stores and 20 children's stores in the first half of the year [1] - Management plans to gradually increase investment in Merrell by 2026/27, focusing on core products in outdoor activities [2] Inventory and Cost Management - Inventory turnover days increased by 23 days to 91 days due to pre-stocking for the marathon season and new store openings for Saucony [3] - Selling expenses increased by 1.5 percentage points, primarily due to rising platform fees and logistics costs associated with online business [3] Future Outlook - The company maintains guidance for full-year revenue growth and a net profit increase of over 10% [3] - Sales performance in July showed improvement, but August remains uncertain [3] Valuation - The EPS forecast for 2025/26 remains unchanged at 0.50/0.55 HKD, with the current stock price corresponding to 11/10 times the 2025/26 P/E ratio [3] - The target price has been raised by 5% to 7.23 HKD, reflecting a 13 times 2025 P/E ratio and an 18% upside potential [3]

Core Viewpoint - The company reported a solid performance in the first half of 2025, with revenue and net profit growth exceeding expectations, primarily due to the divestment of loss-making fashion sports brands [1][4]. Financial Performance - Revenue increased by 7.1% year-on-year to 6.84 billion yuan, while net profit rose by 21.5% to 910 million yuan, significantly outpacing revenue growth [1]. - The company plans to distribute an interim dividend of 0.18 HKD per share, maintaining a payout ratio of 50% [1]. Brand Performance - The main brand achieved a revenue of 6.05 billion yuan, a 4.5% increase, maintaining a leading position in marathon apparel with the highest wearing rate in major events [2]. - The professional sports segment saw a robust growth of 32.5% to 790 million yuan, driven by strong offline retail performance and successful marketing of new products [2]. Channel Analysis - Online sales growth outpaced offline, with e-commerce contributing over 30% to the main brand's revenue [3]. - The company is progressing well in its Direct-to-Consumer (DTC) transformation, with plans to convert approximately 500 franchise stores to self-operated ones [3]. Operational Efficiency - Inventory turnover days decreased by 9 days to 91 days, and net cash increased by 94.3% to 1.91 billion yuan, indicating a strong balance sheet [4]. - The company maintains its full-year guidance, confident in achieving over 10% growth in both revenue and net profit [4]. Strategic Focus - The company is optimizing its multi-brand matrix by divesting from fashion sports brands and focusing on core running business, which is expected to enhance competitive positioning [4].

Core Viewpoint - The company reported a revenue of 6.84 billion RMB and a net profit of 910 million RMB for the first half of 2025, showing a year-on-year growth of 7.1% and 21.5% respectively, with a focus on the performance of its main brand and professional sports segment [1][2] Financial Performance - The company's gross margin slightly decreased by 0.1 percentage points to 45.0%, while the operating profit margin increased by 0.4 percentage points to 19.1% [1][3] - The net profit margin rose by 1.6 percentage points to 13.4%, although it would have decreased by 0.1 percentage points if excluding the impact of the KP business [1][3] - Earnings per share (EPS) for the first half of 2025 was 0.35 RMB, with a proposed cash dividend of 0.18 HKD per share, resulting in a payout ratio of 50.0% [1] Revenue Breakdown - Revenue from the main brand and professional sports segment grew by mid-single digits and over 30% respectively, with footwear, apparel, and accessories contributing 60.8%, 37.3%, and 1.9% to total revenue [2] - The main brand's revenue from youth products outperformed adult products, and online sales accounted for over 30% of the main brand's revenue [2] Store and Inventory Management - As of June 2025, the number of adult stores was 6,360, a net decrease of 22 stores since the beginning of the year, while youth stores totaled 1,564, a decrease of 20 stores [2] - Inventory increased by 41.3% to 2.25 billion RMB compared to the beginning of the year, primarily due to preparations for upcoming marathon events [4] Cash Flow and Receivables - Operating net cash flow for the first half of 2025 was 770 million RMB, a decrease of 6.4% year-on-year [4] - Accounts receivable increased by 5.4% to 4.84 billion RMB, with a turnover period of 118 days, an increase of 18 days year-on-year [4] Strategic Focus - The company continues to strengthen its position in the running segment, with the main brand maintaining the highest wearing rate in key marathon events [4] - New product launches include advanced running shoes aimed at enhancing performance, and the company is expanding its retail channel management to improve consumer experience [5]

Core Viewpoint - Xtep International reported a 7.1% year-on-year increase in revenue to 6.84 billion yuan for 1H25, with a 21.5% rise in net profit to 910 million yuan, indicating strong performance driven by its running ecosystem and brand strategies [1][2]. Financial Performance - Revenue increased by 7.1% to 6.84 billion yuan, with net profit rising by 21.5% to 910 million yuan, and net profit margin improved by 1.6 percentage points to 13.4% [1]. - Core net profit, excluding K&P brand losses of 106 million yuan, grew by 6.4% year-on-year [1]. - The company declared an interim dividend of 0.18 HKD per share, with a payout ratio of 50% [1]. Brand and Product Strategy - The main brand focused on the mass market, continuously iterating products and accelerating direct-to-consumer (DTC) layout, while the Saucony brand targeted the high-end market [1][2]. - New products such as the 160X champion running shoes and 360X 2.0 carbon plate running shoes contributed to an increase in average selling price (ASP) in the running category [2]. - The main brand's online channel growth outpaced overall performance, with revenue from the main brand increasing by 4.5% to 6.05 billion yuan [1][2]. Operational Efficiency - The company’s gross margin slightly decreased by 0.1 percentage points to 45.0%, influenced by online promotional activities and a significant increase in low-margin apparel sales [2]. - Inventory turnover days increased by 23 days to 91 days, primarily due to preparations for the marathon season and Saucony's inventory needs [2]. - Net cash rose by 94.3% to 1.913 billion yuan, indicating significant improvement in cash levels [2]. Future Outlook - The main brand will launch a DTC model in 2H25, aiming to enhance operational efficiency and support long-term growth, with plans to open 100-200 DTC stores by 2025 and 300 by 2026 [3]. - Saucony plans to accelerate store openings in high-tier cities, with expectations to open 30-50 new stores in 2H25, expanding its apparel and lifestyle product lines [3]. - The company maintains profit forecasts for 2025-2027, with net profit expectations of 1.37 billion, 1.53 billion, and 1.71 billion yuan respectively, and adjusts the target price to 7.08 HKD [3].

Group 1 - The company's mid-year revenue growth met expectations, while profit growth slightly exceeded market estimates, achieving a 21.5% year-on-year increase due to effective management cost control and increased government subsidies [1] - The overall gross margin saw a slight decline year-on-year, attributed to deeper online discounts amid weak discretionary consumption and a higher proportion of lower-margin children's business, but long-term gross margin is expected to trend upwards [1] - The company anticipates that the continued expansion and maturation of the children's business, along with the increasing revenue share from the Saucony brand, will contribute to a long-term upward trend in gross margin [1] Group 2 - The Saucony brand demonstrated strong growth, with a projected doubling of revenue over the next three years, supported by the opening of 10 new stores in mainland China and a 32.5% year-on-year increase in same-store sales [2] - The operating profit for the Saucony brand surged by 236.8% year-on-year, indicating that it has successfully transitioned past its initial adjustment phase and is now a significant growth driver for the company [2] - The company plans to enhance the development of the outdoor brand Maile, capitalizing on the current outdoor industry trend, with expectations of increased investment by 2026 [2] Group 3 - The company maintains its profit forecasts, projecting earnings per share of 0.49, 0.56, and 0.63 RMB for 2025-2027, respectively, and assigns a target price of 8.54 HKD based on a 16x PE valuation for 2025 [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The main brand shows stable fundamentals, and the product experience of the professional brand, Saucony, continues to improve [5] - The company reported a revenue of 6.838 billion RMB for the first half of 2025, representing a year-on-year growth of 7.1%, which aligns with expectations [7] - The gross profit for the same period was 3.074 billion RMB, with a year-on-year increase of 6.9%, and the net profit attributable to shareholders was 914 million RMB, reflecting a year-on-year growth of 21.5% [7] - The company maintains a high dividend payout ratio, distributing an interim dividend of 0.18 HKD per share, with a payout ratio of 50% [7] Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 14,345.51 million RMB - 2024: 13,577.22 million RMB (decrease of 5.36%) - 2025E: 14,486.83 million RMB (increase of 6.70%) - 2026E: 15,668.76 million RMB (increase of 8.16%) - 2027E: 17,186.96 million RMB (increase of 9.69%) [6] - Net profit attributable to shareholders is projected as follows: - 2023: 1,030.01 million RMB - 2024: 1,238.40 million RMB (increase of 20.23%) - 2025E: 1,384.97 million RMB (increase of 11.84%) - 2026E: 1,568.61 million RMB (increase of 13.26%) - 2027E: 1,787.65 million RMB (increase of 13.96%) [6] - The company’s return on equity (ROE) is projected to be: - 2023: 11.62% - 2024: 14.23% - 2025E: 13.73% - 2026E: 13.46% - 2027E: 13.30% [6] Brand Performance - The main brand, Xtep, achieved a revenue of 6.053 billion RMB in the first half of 2025, with a year-on-year growth of 4.5% [7] - The professional sports segment, including Saucony and Maile, saw a revenue increase of 32.5% to 785 million RMB in the same period [7] - The company is focusing on product iteration and category expansion to drive growth in high-end brands [7]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown steady revenue growth, with a 7.1% year-on-year increase in revenue to 6.84 billion RMB in the first half of 2025, and a 21.5% increase in net profit to 910 million RMB, driven by the divestiture of loss-making brands [6][8] - The main brand continues to grow steadily, maintaining the top position in marathon apparel, with a revenue of 6.05 billion RMB, a 4.5% increase year-on-year [6] - The company is focusing on optimizing its multi-brand matrix and has initiated a Direct-to-Consumer (DTC) transformation to enhance market responsiveness and efficiency [6] Financial Data and Profit Forecast - Revenue projections for FY2023 to FY2027 are as follows: 143 billion RMB (2023), 136 billion RMB (2024), 143 billion RMB (2025E), 151 billion RMB (2026E), and 161 billion RMB (2027E) [5] - Net profit forecasts are: 10.3 billion RMB (2023), 12.4 billion RMB (2024), 13.7 billion RMB (2025E), 14.9 billion RMB (2026E), and 16.0 billion RMB (2027E) [5] - The company’s gross margin is projected to stabilize around 45% from 2025 to 2027, with a PE ratio of 11 for 2025 [6][5]

Investment Rating - The report maintains a "Buy" rating for the company [6][5]. Core Views - The company reported a revenue increase of 7.1% year-on-year to 6.84 billion HKD and a net profit increase of 21.5% year-on-year to 0.91 billion HKD, with a net profit margin improvement of 1.6 percentage points to 13.4% [1][6]. - The company is focusing on the running ecosystem, iterating products for the mass market, and accelerating its direct-to-consumer (DTC) strategy, which is expected to drive performance growth [1][4]. - The professional sports brand, Saucony, has seen over 30% revenue growth, benefiting from double-digit same-store sales growth and increased online and apparel sales [2][4]. Summary by Sections Financial Performance - The company's gross margin decreased by 0.1 percentage points to 45.0%, with the main brand and professional sports brand gross margins at 43.6% and 55.2%, respectively [3]. - The overall net profit margin increased by 1.6 percentage points to 13.4%, partly due to losses from the K&P brand in the previous period and growth in other income sources [3]. Brand and Product Development - The main brand's revenue grew by 4.5% year-on-year to 6.05 billion HKD, with e-commerce achieving double-digit growth [2]. - New product launches, such as the 160X champion running shoes and 360X 2.0 carbon plate running shoes, have contributed to an increase in average selling price (ASP) for the running category [2]. Future Outlook - The company plans to upgrade its retail strategy in the second half of 2025 by launching the DTC model, aiming to enhance operational efficiency [4]. - Saucony is expected to accelerate its store openings in high-tier cities, with plans to open 30-50 new stores in 2025, which will likely boost store efficiency and operating profit margin [4]. Earnings Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 1.37 billion, 1.53 billion, and 1.71 billion HKD, respectively, with corresponding EPS of 0.49, 0.55, and 0.61 HKD [5][11]. - The target price has been adjusted upward by 7.6% to 7.08 HKD, reflecting a revised PE ratio of 13.3x for 2025 [5][11].

大和发布研报称，对特步国际(01368)2025年预测仅作微调，但将2026年每股盈利预测下调2%，以反映 核心特步品牌收入增长可能放缓。该行重申对该公司"买入"评级，估值基于不变的12倍市盈率，应用于 2025至2026年每股盈利平均值(此前为2025年每股盈利);将12个月目标价从6.6港元上调至7港元。 大和又认为，特步国际童装业务将带来进一步上行潜力，管理层预计，该业务未来可见的增长将超越成 人市场。按同口径计算，该行预测公司2025年盈利增长约5%。 特步国际今年上半年净利润按同口径同比增长6.4%，分别超出该行及市场共识预期19%及17%，主要得 益于强劲的营运成本控制，以及专业运动(索康尼(Saucony)及迈乐(Merrell)品牌)业务的营运利润率超出 预期，同比增长6.1个百分点至10%。大和表示，尽管业绩超预期，但对特步2025年预测仅作微调，因 预计下半年营运利润率将因季节性因素减弱，同时Saucony在下半年的市场推广活动(及相关成本)可能 增加。 大和认为，特步国际业绩中最突出之处在于，尽管2025年上半年收入增长放缓，大众市场及专业运动部 门的营运利润率仍保持韧性。然而，鉴于下半 ...