Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][34][38]. Core Viewpoints - The company is positioned as a leading domestic sportswear brand focusing on the running segment, leveraging continuous R&D investments to achieve technological advancements in footwear and apparel, thereby establishing high competitive barriers. The company is also enhancing brand competitiveness through differentiated channel strategies and effective marketing, indicating significant long-term growth potential [6][34][38]. - The financial forecasts predict the company's net profit attributable to shareholders for 2024, 2025, and 2026 to be 12.64 billion, 13.95 billion, and 15.99 billion RMB, respectively, representing year-on-year growth rates of 22.73%, 10.36%, and 14.65% [5][34][41]. Financial Summary - The company's revenue for FY2023 is projected at 14.35 billion RMB, with a year-on-year growth of 10.94%. For FY2024, revenue is expected to reach 14.86 billion RMB, reflecting a growth of 3.61%. The forecast for FY2025 and FY2026 is 15.41 billion and 16.94 billion RMB, with growth rates of 3.69% and 9.91%, respectively [5][25][34]. - The gross profit margin is expected to improve from 42.20% in FY2023 to 44.27% in FY2026, indicating a positive trend in profitability [5][25][34]. Market and Industry Insights - The running culture in China is growing, with a significant increase in marathon events and participants, which is expected to drive demand for running-related products. The number of certified marathon events in 2023 reached 699, nearing pre-pandemic levels, highlighting a robust recovery in the running community [136][139]. - The domestic sportswear market is witnessing a shift towards leading national brands, with the market share of top brands like Anta, Li Ning, and Xtep increasing significantly. The market concentration is expected to continue as consumer preferences evolve towards domestic brands [139][140]. Company Strategy and Development - The company has been focusing on expanding its online channels, which have shown a growth rate exceeding 20% year-on-year, contributing to over 30% of the main brand's revenue. This shift is expected to become a new growth driver for the company [21][22]. - The company actively sponsors marathon events and has signed multiple sports celebrities as brand ambassadors, reinforcing its professional image in the running segment and enhancing brand recognition among consumers [22][34]. Competitive Positioning - The company is strategically positioned in the running footwear market, with its main brand catering to both mass and elite consumer segments. The introduction of specialized brands like Saucony and Merrell targets professional runners and outdoor enthusiasts, further diversifying its market reach [34][126]. - The report highlights that the company's average PE ratio for 2024 is projected at 11.4X, which is lower than the industry average of 14.0X, suggesting potential undervaluation relative to its peers [34][41].
特步国际：运动品头部国牌，多品牌运营专业与大众需求并举