Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 6.58 [6][7]. Core Views - The company reported a revenue of RMB 13.58 billion for 2024, representing a year-on-year increase of 6.5%, and a net profit of RMB 1.24 billion, up 20.2% year-on-year, which aligns closely with previous expectations [1][2]. - The company is focusing on strengthening its running matrix and enhancing its competitive edge through the main brand and professional sports brands like Saucony, which continues to show high growth [2][3]. - The company is accelerating its Direct-to-Consumer (DTC) strategy, planning to reclaim distribution rights for approximately 400-500 stores, which is expected to enhance brand influence and market competitiveness [2][3]. Summary by Sections Financial Performance - The company achieved a gross margin of 43.2%, an increase of 1.0 percentage points year-on-year, primarily due to the high gross margin from Saucony [3]. - The net profit margin increased by 1.9 percentage points to 9.1% during the period [3]. - The company maintained a healthy operating capital turnover of 87 days, with inventory turnover days reduced by 22 days to 68 days [3]. Revenue Breakdown - The main brand's revenue increased by 3.2% to RMB 12.33 billion, while the professional sports segment, including Saucony and Merrell, saw a significant revenue increase of 57.2% to RMB 1.25 billion, with Saucony's revenue surpassing RMB 1 billion [2]. - Online e-commerce revenue grew approximately 20%, accounting for over 30% of total revenue [2]. Profit Forecast and Valuation - The net profit estimates for 2025 and 2026 have been adjusted downwards by 8.0% and 10.5% to RMB 1.37 billion and RMB 1.53 billion, respectively, with a new estimate for 2027 at RMB 1.71 billion [4]. - The target price corresponds to a PE ratio of 12.3x for 2025, based on the company's strong brand positioning in the running sector and the synergy from multiple brands [4].
特步国际（01368）：索康尼延续高增，DTC布局可期