Ge Long Hui·2025-08-26 20:07Core Viewpoint - Company reported a revenue increase of 3.3% year-on-year for H1 2025, but net profit attributable to shareholders declined by 11% [1] - The company declared a dividend of 33.59 cents per share, with a payout ratio of approximately 50% [1] Financial Performance - Revenue for H1 2025 reached 14.817 billion RMB, with wholesale revenue growing by 5.0% to 6.481 billion RMB, while direct sales revenue fell by 4.3% to 3.234 billion RMB [1] - E-commerce revenue increased by 6.5% to 5.102 billion RMB, maintaining good growth [1] - Gross margin for H1 2025 was 50.0%, a decrease of 0.4 percentage points year-on-year, with expectations of further pressure on gross margin due to increased discounts [1] Product Category Performance - Growth was primarily driven by running and training categories, both achieving a 15% increase in revenue [2] - Sales of professional running shoes exceeded 14 million pairs, with core series sales surpassing 5.26 million pairs [2] - The sports lifestyle category declined by 7%, and the basketball category saw a 20% revenue drop, indicating ongoing adjustments [2] Store and Channel Strategy - As of June 30, the total number of stores was 6,099, with a net decrease of 18 stores since the beginning of the year [2] - The company continues to optimize its channel structure, with a focus on planned new store openings [2] Investment Outlook - The company is expected to face pressure from the consumer environment, but H1 performance slightly exceeded expectations, leading to an upward revision of EPS forecasts for 2025-2027 [3] - The target price for 2025 is set at 22.6 HKD, based on a 22 times PE ratio [3]