Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company achieved revenue, net profit attributable to shareholders, and operating cash flow of 6.838 billion, 914 million, and 774 million CNY respectively in H1 2025, with year-on-year growth of 7.1%, 21.5%, and a decline of 6.4% [2] - The net profit growth outpaced revenue growth primarily due to a loss of 106 million CNY from the sale of the KP brand in H1 2024; excluding this impact, the net profit attributable to shareholders increased by 6.4% year-on-year [2] - The company declared an interim dividend of 0.18 HKD per share, with a payout ratio of 50.0% and a dividend yield of 6.3% [2] Summary by Sections Business Overview - The mass sports segment (Tebu) and professional sports segment (Saucony, Myle) generated revenues of 6.052 billion and 785 million CNY respectively in 2024, reflecting year-on-year growth of 4.5% and 32.5% [3] - The growth in the mass sports segment was driven by strong online sales performance, while the professional sports segment benefited from robust offline retail performance, achieving double-digit same-store sales growth [3] - The number of stores for Tebu Children, Tebu, and Saucony in H1 2025 was 1,564, 6,360, and 155 respectively, with year-on-year changes of -3.3%, -8.3%, and 21.1% [3] - Saucony's brand recognition among Chinese consumers has significantly increased, leading to its top position among international brands in key marathon events [3] Financial Performance - The company's gross margin for H1 2025 was 45.0%, a year-on-year decline of 0.1 percentage points, with mass sports and professional sports gross margins at 43.6% and 55.2% respectively [4] - Operating profit margin (OPM) increased to 19.1%, a year-on-year increase of 0.4 percentage points, with operating profits for mass sports and professional sports at 1.208 billion and 79 million CNY respectively [4] - The net profit margin for H1 2025 was 13.4%, a year-on-year increase of 1.6 percentage points [4] Inventory and Cash Flow - The company's inventory increased slightly to 2.255 billion CNY in H1 2025, a year-on-year growth of 2.5% [5] - Accounts receivable rose to 4.844 billion CNY, a year-on-year increase of 9.6%, with an increase in turnover days by 22 days [5] - Accounts payable decreased to 2.621 billion CNY, a year-on-year decline of 6.1% [5] Investment Recommendations - Short-term investments in the main brand DTC strategy may negatively impact sales performance but are expected to enhance consumer interaction and brand loyalty in the long term [6] - Saucony plans to expand its product matrix and open new flagship and concept stores in key urban areas, which is anticipated to improve gross margins [6] - The company maintains its revenue forecasts for 2025, 2026, and 2027 at 14.286 billion, 15.558 billion, and 17.251 billion CNY respectively, with net profit forecasts of 1.374 billion, 1.511 billion, and 1.664 billion CNY [6]
特步国际（01368）：电商业务强劲，索康尼线下同店双位数增长