Investment Rating - The investment rating for the company is "Buy" with a 6-month target price maintained at 5.53 HKD [1] Core Insights - The report highlights that Xtep International's main brand has achieved a retail sales growth in the mid-single digits year-on-year, with a discount rate of approximately 75% and an inventory turnover of about four months [1] - The subsidiary brand Saucony has shown remarkable performance with retail sales growth exceeding 50% year-on-year [1] - The company is strategically focusing on its running business by potentially divesting K-Swiss and Paladin to strengthen its market position in the running sector [1] - The new industrial park in Bengbu, Anhui, which commenced operations in May 2023, includes approximately 48,000 square meters of footwear production facilities and 25,000 square meters for apparel, aimed at meeting expanding business demands [1] Summary by Sections Company Overview - Xtep International's total share capital is 2,644.52 million shares, with a total market capitalization of 14,624.18 million HKD [1] - The company has a net asset value per share of 3.90 HKD and a debt-to-asset ratio of 46.15% [1] Financial Projections - The revenue projections for the company from 2024 to 2026 are estimated at 16 billion RMB, 17.9 billion RMB, and 19.8 billion RMB respectively [1] - Net profits are projected to be 1.21 billion RMB, 1.41 billion RMB, and 1.65 billion RMB for the same period, with corresponding EPS of 0.46 RMB, 0.53 RMB, and 0.63 RMB [1] - The expected P/E ratios are 11, 10, and 8 for the years 2024, 2025, and 2026 respectively [1]
特步国际：索康尼亮眼，主牌稳健