Group 1 - The core viewpoint of the report indicates that Xtep International (01368) will upgrade its retail strategy in H2 2025, implementing DTC reforms to enhance consumer responsiveness and operational efficiency, with minimal short-term financial impact expected [1] - The forecasted net profit attributable to shareholders for Xtep from 2025 to 2027 is projected to be 1.362 billion, 1.514 billion, and 1.658 billion yuan respectively, with a target price of 6.02 HKD per share based on a PE ratio of 10 for 2026 [1] - In Q4 2025, Xtep's main brand revenue remained flat year-on-year, with a slight decrease in growth rate compared to Q3, attributed to warmer weather and a later Spring Festival affecting winter apparel sales [1] Group 2 - Saucony's revenue in Q4 2025 saw a year-on-year increase of over 30%, accelerating from over 20% growth in Q3, primarily due to adjustments made to the e-commerce channel starting in Q2 [2] - Saucony focuses on elite runners and continues to open new flagship and concept stores in high-end shopping centers in major cities, aiming to expand its customer base and improve store efficiency [2] - The synergy between Xtep's main brand and Saucony in the running sector is expected to strengthen, enhancing their market share in the running market, with a projected sales volume of over 25 million pairs of running shoes in 2025 [2]