Group 1 - The core viewpoint of the article highlights that Xtep International (01368) has seen a stock price increase of over 5%, reaching HKD 6.77, with a trading volume of HKD 65.27 million [1] - Xtep International reported a revenue of RMB 6.838 billion for the first half of 2025, reflecting a year-on-year increase of 7.14% [1] - The profit attributable to ordinary shareholders was RMB 914 million, marking a year-on-year increase of 21.47% [1] Group 2 - The interim dividend declared is HKD 0.18 per share, compared to HKD 0.156 in the same period last year [1] - Revenue growth was primarily driven by the mass sports segment, which saw a 4.5% increase to RMB 6.1 billion, attributed to strong online channel performance and increased consumer engagement [1] - Goldman Sachs noted that Xtep's net profit for the first half of the year exceeded their forecast by 12%, mainly due to higher-than-expected other income and earnings, while core business revenue met expectations [1] Group 3 - The management indicated that the retail sales growth rate for the core Xtep brand and Saucony brand accelerated in July compared to the previous year [1] - CMB International believes that Xtep's performance in the first half of the year surpassed expectations, and the retail sales growth trend for the third quarter is promising [1] - Goldman Sachs maintains a constructive outlook on the long-term sales and profitability of the Saucony brand [1]

Core Viewpoint - Xtep International (01368) reported a strong performance in its interim results for 2025, with significant revenue and profit growth, leading to a notable increase in stock price [1] Financial Performance - The company achieved a revenue of 6.838 billion RMB, representing a year-on-year increase of 7.14% [1] - Profit attributable to ordinary shareholders was 914 million RMB, up 21.47% year-on-year [1] - The interim dividend was set at 0.18 HKD per share, an increase from 0.156 HKD in the same period last year [1] Revenue Breakdown - The mass sports segment saw a revenue increase of 4.5% to 6.1 billion RMB, driven by strong online channel performance and increased consumer engagement and sales [1] Analyst Insights - Goldman Sachs noted that Xtep's net profit exceeded their forecast by 12%, attributed to higher-than-expected other income and earnings, while core business revenue met expectations [1] - The gross margin and recurring operating profit margin were slightly above Goldman Sachs' predictions [1] - Zhuhai International expressed a positive outlook on Xtep's performance, highlighting a favorable retail sales growth trend in the third quarter [1] Brand Performance - Management indicated that retail sales growth for the core Xtep brand and Saucony brand accelerated in July compared to the previous year [1]

Group 1 - Goldman Sachs has set a new target price of HKD 7.1 for Xtep International (01368), up from the previous HKD 7, based on a projected price-to-earnings ratio of 13 times for 2025 [1] - The firm maintains a "Buy" rating for Xtep International, citing attractive risk-reward dynamics [1] - Xtep International's net profit for the first half of the year exceeded Goldman Sachs' forecast by 12%, driven by higher-than-expected other income and revenue, while core business revenue met expectations [1] Group 2 - The company reiterated its guidance, expecting a net profit growth of over 10% year-on-year for 2025, supported by positive sales growth and a cautiously optimistic outlook for the consumption environment in the second half of 2025 [1] - Goldman Sachs remains encouraged by the robust growth in the running market for Xtep's core business, despite uncertainties in non-functional products and the macro environment [1] - The firm holds a constructive view on the long-term sales and profitability of the Saucony brand [1] Group 3 - Following the positive earnings report, Goldman Sachs has slightly adjusted its net profit forecasts for Xtep International for 2025 to 2027 by 0% to 1.5%, reflecting minor downward adjustments in brand sales forecasts due to macroeconomic factors and direct sales transformation [1] - Increased sales and management expenses for both brands in the second half of the year are expected, but these are offset by higher-than-expected other income and revenue [1]