Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 6.58 [4][6]. Core Views - The company reported a steady growth in its main brand, with a year-on-year revenue increase in the third quarter of 2024, although the growth rate has slowed due to pressure on customer traffic and attachment rates [1]. - The subsidiary Saucony showed a strong performance with a 50% year-on-year revenue increase in Q3 2024, continuing its robust growth trajectory [1]. - The ongoing divestiture of KP Global is progressing well, which is expected to reduce losses and enhance profitability, allowing the company to focus on its core brands [1][2]. Summary by Sections Company Overview - The main brand's revenue growth was driven by e-commerce and children's segments, with online and children's businesses achieving high double-digit and low double-digit growth, respectively [1]. - The retail discount for the main brand was approximately 25%, and the inventory turnover ratio was about four months, indicating stable operational levels [1]. Financial Forecast - The company forecasts a net profit growth of 25.3% in 2024, reaching RMB 1.291 billion, with corresponding EPS of RMB 0.49 [2][3]. - Revenue projections for 2024 to 2026 are RMB 15.085 billion, RMB 15.621 billion, and RMB 17.309 billion, respectively, reflecting a steady growth trajectory [3][9]. Valuation Metrics - The company is valued at a PE ratio of 10.7x for 2025, with a target price adjustment of 4.6% to HKD 6.58 based on its market position and operational stability [2][6]. - The average PE ratio for comparable companies in the industry is 11.6x, indicating a favorable valuation for the company [2][6].
特步国际：索康尼表现靓丽，KP剥离进展顺利