Investment Rating - The report maintains an "Accumulate" rating for the company [6][12]. Core Views - The main brand experienced low single-digit revenue growth in Q3, while the Saucony brand saw revenue growth exceeding 20%. The overall annual expectations remain unchanged [2][12]. - The report anticipates a healthy inventory level, projecting it to decrease to below 2 billion by the end of 2025. The dividend payout ratio is expected to be no less than 50% for the year [12]. Financial Summary - Total revenue is projected to be 14,470 million RMB in 2025, reflecting a 6.6% increase from 2024. Net profit is expected to reach 1,373 million RMB, a 10.8% increase from the previous year [11][12]. - The company is expected to maintain a PE ratio of 10.9 in 2025, with a target price of 8.74 HKD based on a 15X PE for 2026 [12][15]. - The financial ratios indicate a projected ROE of 14.6% and a sales net profit margin of 9.49% for 2025 [13].

Core Viewpoint - Goldman Sachs released a report stating that Xtep International (01368) reported its operational performance for Q3 2025, with core brand Xtep retail sales growth meeting expectations, while Saucony brand growth exceeded 20%, slightly below expectations [1] Financial Performance - Xtep brand achieved positive growth, and Saucony brand growth exceeded 30%, with net profit growth over 10% [1] - Goldman Sachs adjusted the net profit forecast for Xtep International for FY 2025 to 2027 by 2% to 3%, primarily reflecting the decline in profitability of the Bubugao (002251) brand and the slowdown in Saucony's growth [1] Market Sentiment - Target price was lowered from HKD 7.1 to HKD 6.8 to reflect the overall weak demand in the industry and short-term market sentiment influenced by discount trends [1] - The current expected P/E ratio for 2026 is 9 times, indicating a reasonable valuation, and the "Buy" rating is maintained [1]

Core Viewpoint - Goldman Sachs released a report indicating that Xtep International (01368) reported its operational performance for Q3 2025, with core brand Xtep retail sales growth meeting expectations, while Saucony brand growth exceeded 20%, slightly below expectations [1] Group 1: Financial Performance - Xtep International's full-year performance guidance was reaffirmed, with Xtep brand achieving positive growth and Saucony brand growth exceeding 30%, alongside a net profit increase of over 10% [1] - Goldman Sachs adjusted the net profit forecast for Xtep International for the fiscal years 2025 to 2027 down by 2% to 3%, primarily reflecting a decline in the profitability of the Bubugao brand and a slowdown in Saucony's growth [1] Group 2: Market Sentiment and Valuation - The target price for Xtep International was reduced from HKD 7.1 to HKD 6.8, reflecting overall industry demand weakness and short-term market sentiment under discount trends [1] - The current expected price-to-earnings ratio for 2026 is 9 times, which is considered reasonable, maintaining a "Buy" rating [1]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][3][7] Core Views - The company's main brand retail sales in Q3 showed low single-digit year-on-year growth, while the Saucony brand experienced over 20% growth [2][3] - The management maintains the annual guidance, indicating stable growth prospects for the main brand and strong performance for the professional sports brand [3][6] - The company focuses on the running category, leveraging its expertise to achieve steady sales growth, with Saucony and another brand, Maile, targeting specific consumer segments for faster growth [3][9] Summary by Sections Q3 Performance - The main brand's retail sales in Q3 grew low single digits year-on-year, with better performance in July and August compared to September [4] - Online sales outperformed offline sales, with children's products showing stronger growth than adult products, particularly in functional categories like running and outdoor [4] Retail Discounts and Inventory - Retail discounts for the main brand remained stable at 70-75%, with inventory turnover ratio stable at 4.0-4.5 months, indicating a healthy inventory level [5] Brand Growth - Saucony's sales grew over 20%, with strategic adjustments made to reduce low-priced products in e-commerce and tighten discounts [6] - The management expects Saucony's revenue growth to exceed 30% in 2025, with profits anticipated to grow over 10% [6] Financial Forecasts - The company forecasts net profits of 1.4 billion, 1.49 billion, and 1.6 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 13.2%, 5.9%, and 7.7% [3][10] - The reasonable valuation range is maintained at 6.1-6.6 HKD, corresponding to a PE ratio of 11-12x for 2025 [3][9]

智通财经APP获悉，中信里昂发表报告指，特步国际(01368)2025财年业绩指引维持不变。该行预计，两 个品牌的门市升级将持续进行，特步核心品牌的通路多元化将持续推进，Saucony(索康尼)的产品品类 也将持续拓展，这些都将推动销售增长。该行予该股"跑赢大市"评级，目标价为6.3港元。 报告指，特步股价在2025年第三季更新后于10月17日下跌3.5%，核心品牌和索康尼的销售趋势较上季 维持稳定。尽管可比销售额有所下降，但特步核心品牌零售额与第二季持平。线上销售额年增两位数， 仍优于线下销售额。 ...

中信里昂发表报告指，特步国际(01368)2025财年业绩指引维持不变。该行预计，两个品牌的门市升级 将持续进行，特步核心品牌的通路多元化将持续推进，Saucony(索康尼)的产品品类也将持续拓展，这 些都将推动销售增长。该行予该股"跑赢大市"评级，目标价为6.3港元。 报告指，特步股价在2025年第三季更新后于10月17日下跌3.5%，核心品牌和索康尼的销售趋势较上季 维持稳定。尽管可比销售额有所下降，但特步核心品牌零售额与第二季持平。线上销售额年增两位数， 仍优于线下销售额。 ...

Core Viewpoint - Guosheng Securities reports that Xtep International (01368) is a leading sportswear company in China with significant advantages in the professional running sector, and expects the company's net profit attributable to shareholders to reach 1.365 billion, 1.504 billion, and 1.631 billion yuan for 2025-2027, corresponding to a PE of 11 times in 2025, maintaining a "Buy" rating [1] Group 1: Revenue Performance - Xtep's main brand revenue showed low single-digit year-on-year growth in Q3 2025, with the running category experiencing strong growth of over 20% [2][3] - The e-commerce channel is expected to outperform offline sales, with the company optimizing its offline channel by closing underperforming stores and opening high-quality image stores [2] Group 2: Inventory and Discount Management - Xtep's channel inventory turnover days remained healthy at around 4 to 4.5 months as of the end of Q3 2025, consistent with Q2 2025 and slightly higher than Q3 2024 [3] - The overall terminal discount for Q3 2025 was between 70% to 75%, stable compared to Q2 2025 but slightly deeper than Q3 2024 [3] Group 3: Future Outlook - For 2025, the company expects a revenue growth of around 7% and a net profit growth of approximately 10%, driven by a cautiously optimistic operational strategy and the advancement of DTC (Direct-to-Consumer) business [4]

Core Viewpoint - Guosheng Securities reports that Xtep International (01368) is a leading sports goods company in China, with significant advantages in the professional running sector. The profitability of Saucony is gradually expanding, and the firm expects the company's net profit attributable to shareholders to reach 1.365 billion, 1.504 billion, and 1.631 billion yuan for 2025-2027, corresponding to a PE ratio of 11 times for 2025, maintaining a "Buy" rating [1]. Group 1: Revenue Performance - Xtep's main brand revenue showed a low single-digit year-on-year growth in Q3 2025, while Saucony's revenue grew over 20%, indicating overall stable performance [2]. - The growth in Xtep's main brand is driven by the running category, with a healthy inventory level. The company is optimizing its channel structure, with e-commerce sales expected to outperform offline sales this year [2]. - The company is enhancing operational efficiency by closing underperforming stores and opening high-quality image stores, while also focusing on product updates in the running segment [2]. Group 2: Operational Metrics - Xtep's channel inventory remains at a healthy level, with terminal discounts slightly deepening year-on-year, ranging between 70% to 75% [3]. - As of the end of Q3 2025, the inventory turnover days for Xtep's brand channels were around 4 to 4.5 months, consistent with Q2 2025 and slightly higher than Q3 2024, but still within a controllable range [3]. - Saucony continues to enhance its brand image and optimize channels, with a revenue growth of over 20% in Q3 2025. The brand is expected to maintain rapid growth in offline channels while deepening its focus on professional running [3]. Group 3: Future Outlook - For 2025, the company anticipates a revenue growth of approximately 7% and a net profit growth of around 10%, as the consumption environment is in a phase of volatile recovery [4]. - The company will adopt a cautiously optimistic operational strategy for its main brand, alongside the advancement of its DTC (Direct-to-Consumer) business [4].

17 October 2025 | 5:27PM HKT Equity Research Xtep International Holdings (1368.HK) FY25 guidance reiterated; Xtep brand in-line while Saucony set for 4Q acceleration; Buy 1368.HK 12m Price Target: HK$6.80 Price: HK$6.01 Upside: 13.1% Xtep reported 3Q25 operating results with Xtep core at LSD% yoy (in-line) retail sales growth and Saucony at >20% yoy (slight miss). The company reiterated full year guidance of positive growth at Xtep brand, >30% for Saucony, and >10% NP growth. For Xtep core, we believe the L ...

Summary of Xtep International Conference Call Company Overview - **Company**: Xtep International - **Date**: October 17, 2025 Key Points Industry and Market Performance - Xtep International anticipates accelerated sales in Q4, with online channels (Tmall, live streaming, Douyin) maintaining double-digit growth [2][3] - The sales of the 2000 km flagship running shoes have doubled, while offline sales remain stable, with stores in third and fourth-tier cities accounting for over 70% [2][3] - Functional running shoes and outdoor categories have achieved double-digit growth, with the marathon season expected to boost running shoe sales [2][3] - The Saucony brand experienced over 20% growth in Q3, with offline sales growth exceeding 30% [2][6] Financial Guidance - Xtep maintains a full-year profit growth guidance of over 10%, with the main brand expected to grow and Saucony's revenue projected to increase by over 30% [2][10] - The company plans to open 70-100 new outlet stores, with average monthly sales per store reaching over one million [2][5] Strategic Initiatives - Xtep is upgrading store images, with over 70% of stores reflecting the new design [3][4] - The company is implementing a Direct-to-Consumer (DTC) strategy, expected to officially launch in Q4, with plans to recover approximately 400 stores by the end of next year [4][16] - New outlet concepts, "Leading Outlet" and "Selected Outlet," are being introduced, focusing on high-end running products and a diverse product selection [4][19] Product and Sales Strategy - The main brand's overall performance in Q3 showed low single-digit growth, with children's business outpacing adult sales [3][20] - The company is focusing on enhancing its product lines, particularly in running and outdoor categories, while also addressing the impact of macroeconomic conditions on lifestyle products [3][9] - The introduction of new winter products and collaborations is expected to boost sales in Q4 [9][13] E-commerce and Promotional Activities - E-commerce adjustments have led to a slight decline in Saucony's sales growth in Q2 and Q3, but improvements are anticipated during the upcoming promotional periods [8][9] - The company is preparing for significant sales events like Double Eleven and Christmas, aiming to leverage these opportunities for growth [12][22] Inventory and Financial Health - Xtep aims to maintain inventory below 2 billion yuan by year-end, with healthy inventory levels across all channels [18] - The company plans to maintain a dividend payout ratio of no less than 50% [18] Future Outlook - Xtep remains confident in achieving its goal of tripling revenue by 2027 and maintaining a profit margin of 15%-20% in the next 3-5 years [11][17] - The company is optimistic about the sports industry’s growth potential, supported by government policies promoting sports consumption [7] Additional Insights - The Saucony brand's international business growth is positively impacting domestic operations, with flagship stores in Tokyo and London performing well [17] - The children's segment has shown significant growth, aided by the brand's repositioning and targeted marketing strategies [20][21] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Xtep International's performance, market strategies, and future outlook.