Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Insights - The company reported a 10% year-on-year increase in revenue for H1 2024, reaching 7.2 billion HKD, and a 13% increase in net profit to 750 million HKD [4]. - The performance of the main brand, fashion sports, and professional sports segments showed growth rates of 7%, 10%, and 72% respectively, with the strong growth of the Saucony brand attributed to improved same-store sales and net new store contributions [4]. - The gross margin improved by 0.8 percentage points to 43.9%, driven by better margins in the popular carbon plate running shoes and children's clothing [4]. - The company achieved a significant improvement in operating cash flow, with a net cash flow of 830 million HKD, a 212% increase year-on-year, and a net cash ratio of 1.1 [4]. - Looking ahead, the company plans to focus on cost control in H2, especially in light of a weaker retail environment expected to slow overall growth [4]. - The upcoming spin-off of KP is anticipated to enhance earnings, with a special dividend of 151 million USD expected, corresponding to a dividend yield of approximately 9% [4]. - The company forecasts net profits of 1.27 billion, 1.46 billion, and 1.62 billion HKD for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 24%, 15%, and 11% [4][7]. Summary by Sections Financial Performance - H1 2024 revenue reached 7.2 billion HKD, a 10% increase year-on-year, with net profit at 750 million HKD, up 13% [4]. - The main brand's inventory turnover ratio is approximately 4 months, with discounts maintained at a healthy level of 25% [4]. Future Outlook - The company expects a slowdown in overall growth due to a weak retail environment, but sees potential for margin improvement in the main brand and advertising expenses [4]. - The spin-off of KP is expected to bolster performance, with a special dividend planned [4]. Valuation Metrics - The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 10, 9, and 8 times respectively [7].
特步国际：现金流改善明显，H2注重控费