Core Viewpoint - The company demonstrates steady growth in its main brand and strong performance in the professional sports segment, with a focus on maintaining its market leadership in the running sector [1][3]. Financial Performance - In H1 2025, the company achieved revenue of 6.838 billion yuan, a year-on-year increase of 7.1% [1]. - The main brand generated revenue of 6.053 billion yuan, up 4.5% year-on-year, while the professional sports segment saw revenue of 785 million yuan, a significant increase of 32.5% [1]. - Gross profit for H1 2025 was 3.073 billion yuan, reflecting a 6.9% year-on-year increase, with a gross margin of 45.0%, down 0.1 percentage points [2]. - The company reported a net profit attributable to shareholders of 914 million yuan, which, after excluding a one-time loss from divesting K-SWISS and Paladin, represents a comparable year-on-year increase of 6.4% [2]. Brand and Market Strategy - The company continues to focus on the running field, enhancing its market position with the launch of the 160X champion running shoes and the new 160 7.0 PRO model [3]. - The company has established partnerships with 27 marathon events in H1 2025, achieving the highest overall wearing rate in key marathons [3]. - The professional sports segment's revenue contribution has increased to 11.5%, driven by double-digit growth in same-store sales and online channel expansion [1]. Future Outlook - The company forecasts net profits of 1.379 billion yuan, 1.516 billion yuan, and 1.664 billion yuan for 2025 to 2027, representing year-on-year growth rates of 11.3%, 9.9%, and 9.8% respectively [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that will outperform the market benchmark by over 20% in the next 6-12 months [5][11]. Core Insights - The company's main brand has shown steady growth, with revenue reaching 6.838 billion yuan in the first half of 2025, a year-on-year increase of 7.1%. The main brand contributed 6.053 billion yuan, up 4.5% year-on-year, while the professional sports segment saw a significant increase of 32.5%, reaching 785 million yuan [1][5]. - The company continues to focus on the running sector, enhancing its market leadership through strategic sponsorships and product innovations, such as the new 160 7.0 PRO running shoes [3]. - Profit forecasts indicate a steady increase in net profit, projected at 1.379 billion yuan in 2025, reflecting a year-on-year growth of 11.3% [3][4]. Revenue and Profitability - In the first half of 2025, the company achieved a gross profit of 3.073 billion yuan, with a gross margin of 45.0%, slightly down by 0.1 percentage points year-on-year. The main brand's gross margin was 43.6%, while the professional sports segment maintained a higher margin of 55.2% [2]. - The total expense ratio increased to 31.0%, up 0.6 percentage points year-on-year, with stable marketing expenditures aimed at enhancing brand visibility and product development [2]. Financial Projections - Revenue projections for the company show a slight decline in 2024, followed by a recovery with expected revenues of 14.459 billion yuan in 2025, growing at 6.5% [4]. - The earnings per share (EPS) is expected to rise from 0.37 yuan in 2023 to 0.49 yuan in 2025, indicating a positive trend in profitability [4].