Investment Rating - The report assigns a "Buy" rating to Xtep International Holdings with a 12-month price target of HK$7.00, indicating an upside potential of 19.9% from the current price of HK$5.84 [10][11]. Core Insights - The company has reiterated its full-year guidance, expecting positive sales growth at the group level, with Saucony and Merrell brands projected to achieve 30%-40% sales growth and over 10% year-on-year net profit growth [2][10]. - Xtep's core business has maintained stable discount levels in the second quarter of 2025, attributed to healthy inventory levels [7][10]. - Management believes that Xtep's established brand recognition and ecosystem provide a competitive advantage in the growing running category [7][10]. Summary by Sections Full Year Guidance - The company expects to deliver positive sales growth at the group level, with Saucony and Merrell brands projected to achieve 30%-40% sales growth and over 10% year-on-year net profit growth [2][10]. Xtep Core - The discount level has remained stable in the second quarter of 2025 due to healthy inventory levels, and the brand is focusing on maintaining stable profit margins [7][10]. Saucony Brand - In the second half of 2025, management anticipates a broader product assortment to meet functional and fashion demands, including new fabrics and an increased focus on women's products, aiming to raise the female sales mix from 10-20% to 30% within the next 1-2 years [4][8]. - The company aims to double Saucony's revenue by 2027 through store expansion, targeting 30-50 new stores annually and enhancing store productivity [4][8].