Core Viewpoint - The report from CICC maintains the EPS forecast for Xtep International (01368) at 0.49/0.55 yuan for 2025/26, introduces a new EPS forecast of 0.61 yuan for 2027, and sets a target price of HKD 6.47, reflecting an 11% decrease and a 27% upside potential from the current stock price, corresponding to an 11x P/E for 2026 [1]. Company Status - Xtep reported that its main brand's retail revenue remained flat year-on-year in Q4 2025, with retail discounts between 70% to 75%, and channel inventory turnover at 4.5 months by the end of December. The Saucony brand saw retail revenue growth of over 30% year-on-year [2]. Retail Environment and Performance - The retail environment showed fluctuations, with the main brand's retail revenue remaining stable in Q4 2025. Online channels, particularly live e-commerce, performed well. Monthly performance was strong in October and November due to promotional events, but December was affected by weather conditions. Retail discounts for the main brand remained stable, and the inventory turnover was healthy [3]. Saucony Brand Growth - The Saucony brand experienced accelerated growth in Q4 2025, with retail revenue increasing by over 30% year-on-year. Strong growth was noted in offline channels, with average store efficiency reaching 450,000 yuan per month. The brand's product line continued to expand with new sports and leisure products, achieving double-digit growth in apparel [4]. Strategic Focus for 2026 - In 2026, the main brand will focus on enhancing offline store efficiency, while the Saucony brand aims for a premium positioning. The management plans to convert 200 stores to a DTC model and open 20-30 new flagship stores. The company also plans to accelerate the opening of outlet stores, with a target of 70-100 new stores in 2026, and aims to enhance the high-end sports image of Saucony [5].
中金：维持特步国际(01368)跑赢行业评级 下调目标价至6.47港元