Core Viewpoint - Cathay Securities maintains its profit forecast for Xtep International (01368) for 2025-2027, projecting net profits of RMB 1.37 billion, RMB 1.49 billion, and RMB 1.61 billion respectively, and sets a target price of HKD 8.74 for 2026, maintaining a "Buy" rating [1][2] Group 1: Financial Projections - The company is projected to achieve a revenue growth of approximately 10% for the overall group by 2025, with the main brand expected to show positive growth and Saucony's revenue anticipated to grow by over 30% [2] - The target price for Xtep International is set at HKD 8.74 based on a 15X PE for 2026 [1] Group 2: Sales Performance - In Q3, the main brand experienced low single-digit growth in revenue, with discounts ranging from 70% to 75%, and inventory levels maintained at 4 to 4.5 months [1] - The company showed strong performance in functional products, particularly in the running category, which is expected to outpace growth in lifestyle products [1] Group 3: Channel and Product Analysis - E-commerce growth is expected to outperform offline sales, with a notable trend in revenue growth during July and August, while September's warm weather may have impacted autumn and winter product sales [1] - Saucony's offline sales continued to show high growth in Q3, with a year-on-year revenue increase of over 20%, driven by proactive adjustments in e-commerce strategies [1]