Core Insights - The company reported a low single-digit year-on-year growth in retail sales for its main brand in Q3 2025, with retail discount levels between 70% to 75% and inventory turnover ranging from four to four and a half months [1] - Saucony's retail sales, including both online and offline channels, exceeded 20% year-on-year growth [1] - The company has made significant strides in brand building, partnering with international events and athletes, and providing official gear for major competitions [1] Brand Development - The company has positioned itself as a global partner for the 12th World Games in 2025, providing exclusive official gear [1] - At the World Athletics Championships, athletes showcased the company's new racing shoes, highlighting its commitment to professional equipment [1] - The company continues to invigorate the Chinese marathon industry by supporting athletes' daily training with professional gear [1] Focus on Youth Development - The company has launched antibacterial children's pants to support young dancers and is collaborating with various authoritative institutions to promote scientific growth [1] - It has published the "Golden Blue Book on Youth Sports Growth" and established a "Youth Sports Growth Joint Laboratory" to implement its findings [1] - The company offers foot testing, equipment adaptation, and sports guidance services to promote scientific sports practices among families [1] Saucony's Growth - Saucony has become one of the top four running shoe brands globally, experiencing a turnaround since the company took over its operations in mainland China and Hong Kong in 2019 [2] - The brand has expanded its product lines and completed its offline presence in first-tier and core second-tier cities, with 155 stores in mainland China as of June [2] - Since re-launching its direct operations in China, Saucony has achieved a compound annual growth rate exceeding 100%, with revenue expected to surpass 1 billion RMB in 2024 [2] Financial Projections - The company maintains its profit forecasts for 2025-2027, expecting revenues of 14.6 billion RMB, 15.4 billion RMB, and 16.5 billion RMB respectively [2] - Projected net profits for the same period are 1.4 billion RMB, 1.5 billion RMB, and 1.7 billion RMB, with corresponding EPS of 0.50 RMB, 0.54 RMB, and 0.61 RMB [2] - The company maintains a "buy" rating based on these projections [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price yet to be specified [7] Core Insights - The company has shown significant growth in its main brand retail sales, with a low single-digit year-on-year increase in Q3 2025, while its subsidiary, Saucony, experienced over 20% year-on-year growth in retail sales [1] - The company has made notable strides in brand building, serving as the global partner for the 12th World Games in 2025 and providing official gear support, which enhances its international influence [2] - The company is focusing on the growth needs of youth by launching products like antibacterial pants for children and collaborating with various authoritative institutions to promote scientific growth [3] - Saucony has accelerated its growth since being acquired by the company in 2019, with a compound annual growth rate exceeding 100% and projected revenue surpassing 1 billion RMB in 2024 [4] Financial Projections - The report maintains profit forecasts for 2025-2027, estimating revenues of 14.6 billion RMB, 15.4 billion RMB, and 16.5 billion RMB respectively, with corresponding net profits of 1.4 billion RMB, 1.5 billion RMB, and 1.7 billion RMB [5]