Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance relative to the market [6][14][18]. Core Insights - The company reported a 10.4% year-on-year revenue growth to 7.2 billion RMB in the first half of 2024, with a net profit increase of 13% to 750 million RMB, driven by robust performance from the main brand and strong growth from new brands in mainland China [6][14]. - The main brand's revenue grew by 6.6% to 5.79 billion RMB, accounting for 80.4% of total revenue, with children's revenue increasing by 18% [6][14]. - The company has adjusted its growth target for the professional sports segment, which saw a 72.2% revenue increase to 590 million RMB, exceeding its initial growth target [6][14]. - The operational metrics show improvement, with a gross margin increase to 46% and a significant improvement in cash flow, with net operating cash flow rising by 212% to 830 million RMB [6][14]. - The company has approved the divestiture of the K&P brand, which is expected to reduce losses and improve overall profitability [6][14]. Summary by Sections Financial Performance - Revenue for FY2024E is projected at 13.646 billion RMB, with a year-on-year growth rate of -5% [6][14]. - Net profit for FY2024E is estimated at 1.252 billion RMB, reflecting a 21% increase compared to the previous year [6][14]. - The gross margin is expected to improve to 45% in FY2024E, maintaining this level through FY2026E [6][14]. Brand Performance - The main brand's revenue growth is supported by a strong online presence, with e-commerce sales growing over 20% and accounting for more than 30% of main brand revenue [6][14]. - The professional sports segment's revenue growth has led to an upward revision of its annual growth target to over 50% [6][14]. - The fashion sports segment also showed significant growth, with a 9.7% increase in revenue to 820 million RMB, particularly strong in mainland China [6][14]. Operational Efficiency - The company has improved its operational efficiency, with a decrease in average inventory turnover days by 21 days to 94 days [6][14]. - The overall operating profit margin has increased to 15.2%, with a net profit margin of 10.4% [6][14]. - The divestiture of the K&P brand is expected to enhance the company's financial performance by reducing losses associated with that brand [6][14].
特步国际：主品牌运营质量稳健，专业运动上调增长目标