Core Viewpoint - The cancellation of the health run project in the Shanghai Marathon has sparked significant reactions among running enthusiasts, highlighting the event's unique status and the challenges of managing a large number of participants [2][5][11]. Group 1: Shanghai Marathon's Special Status - The Shanghai Marathon, established for 28 years, is a prestigious event with a "pilgrimage" status among runners, akin to the lottery system for housing in Shanghai [5]. - This year, the total number of applicants for the full marathon and health run reached 356,589, with a full marathon acceptance rate of only 7.2% and a health run acceptance rate of 38.3% [7]. Group 2: Decision to Cancel Health Run - The decision to cancel the health run is seen as a "subtraction" aimed at enhancing the professional and international reputation of the marathon, as health runs accounted for 40% of the total 38,000 slots [11]. - The cancellation also includes the controversial charity run, which was perceived as a "money-grabbing" opportunity, conflicting with the spirit of professional competition [11]. Group 3: Shift Towards Professionalization - The decision reflects a shift towards professionalization and elitism in top-tier events, encouraging community and park runs to take on the role of promoting public fitness [13]. - The trend of professionalization in events parallels the evolution of running gear, with runners now seeking specialized equipment tailored to different running scenarios [13][17]. Group 4: Evolution of Running Gear - The running shoe market has seen a shift towards specialized footwear, with carbon plate shoes becoming standard for competitive runners, and various designs catering to different terrains and needs [17][21]. - The importance of selecting appropriate running shoes is emphasized, as improper footwear can lead to injuries, highlighting the need for shoes that provide cushioning, support, stability, and grip [19][21]. Group 5: Growth of Trail Running - Trail running has gained popularity, with numerous events taking place across the country, and a significant portion of participants aged between 22 and 55 [29][31]. - The choice of appropriate trail shoes is crucial for safety and performance, with specific designs catering to various terrains and conditions [35]. Group 6: Rise of Hiking Shoes - Hiking shoes have become a new choice for urban commuting, reflecting a shift in workplace attire towards comfort and practicality [41]. - The functionality of hiking shoes, including waterproof materials and slip-resistant soles, meets the demands of urban commuters while blending outdoor practicality with urban fashion [47]. Group 7: Market Trends and Consumer Behavior - The market for specialized footwear is expanding, with both international and domestic brands innovating to meet diverse consumer needs [52][56]. - The evolving consumer mindset reflects a deeper connection to lifestyle choices, where footwear represents not just functionality but also identity and lifestyle expression [61][63].

Core Viewpoint - Zheshang Securities reports that Xtep International (01368) has a clearly defined brand matrix, with its main brand being a leader in the mass running sector, favored for its professionalism and high cost-performance ratio [1] Company Performance - Xtep's main brand shows steady growth with low single-digit revenue growth; Saucony's revenue has increased by over 20% year-on-year, with offline sales continuing to grow rapidly, and adjustments in e-commerce nearing completion [1] Financial Projections - The company is expected to maintain a stable growth trend in the medium to long term, with projected net profits for 2025, 2026, and 2027 increasing by 10.6%, 11.0%, and 11.0% respectively, reaching 1.37 billion, 1.52 billion, and 1.69 billion yuan [1] - The projected dividend payout ratio for 2025 is 50%, corresponding to a dividend yield of 4.6%, with a maintained "Buy" rating [1] Valuation Metrics - The current price-to-earnings (PE) ratios for 2025, 2026, and 2027 are estimated to be 11X, 10X, and 9X respectively [1]

Core Viewpoint - Zheshang Securities reports that Xtep International's brand matrix is clearly positioned, with the Xtep brand being a leader in the mass running sector, favored by consumers for its professionalism and high cost-performance ratio [1] Group 1: Brand Performance - The Xtep brand's star running shoes, represented by the 160X series, and its extensive resources in running events and athletes continue to enhance brand visibility [1] - Saucony and Merrell, as high-end and trail running brands, are expanding their customer base [1] Group 2: Financial Projections - The company is expected to maintain a steady growth trend in the medium to long term, with a projected dividend payout ratio of 50% by 2025, corresponding to a dividend yield of 4.6% [1] - For the fiscal year 2025, the company reported a low single-digit growth in the main brand's revenue, while Saucony's revenue increased by over 20% year-on-year, with offline sales continuing to grow rapidly [1] - The company anticipates net profits attributable to shareholders for 2025, 2026, and 2027 to grow by 10.6%, 11.0%, and 11.0% respectively, reaching 1.37 billion, 1.52 billion, and 1.69 billion yuan, with corresponding PE ratios of 11, 10, and 9 times [1]

Group 1: Financial Support for Sports Consumption - China UnionPay and the National Sports Administration jointly released the "2025-2027 Financial Support for Sports Consumption Activities Plan" to enhance sports consumption [3][4] - The plan focuses on three main areas: deepening platform-based collaboration, creating a "Payment+" ecosystem, and enhancing digital capabilities to boost consumer confidence in sports [3][4] Group 2: Strategic Partnerships in Sports and Technology - 361 Degrees and robot company Stand have formed a strategic partnership to integrate AI technology with the sports industry, establishing a joint venture and a "Future Sports Exploration Laboratory" [5] - The collaboration aims to optimize production processes and enhance consumer experience through smart retail solutions [5] Group 3: Financial Performance of Xtep Group - Xtep Group reported a 7.1% year-on-year increase in revenue for the first half of 2025, reaching 6.838 billion yuan, with the main brand's revenue growing by 4.5% [6][7] - The group's gross profit margin stood at 45.0%, and net profit attributable to shareholders increased by 21.5% to 914 million yuan [6][7] Group 4: New Product Launches and Collaborations - KELME and the Asian Football Confederation launched the new official match ball for the 25/26 AFC Elite League and AFC Second Division, symbolizing a new chapter in their partnership [8] - Juventus and Giorgio Armani announced a collaboration to design formal wear for the Juventus first team, enhancing the club's connection with the fashion world [9]

Financial Data and Key Metrics Changes - The group's total revenue increased by 7.1% to JPY 6,838 million [7] - Operating profit rose by 9.1% to JPY 1,305 million, with an operating profit margin improvement of 0.4 percentage points to 19.19% [8] - Net profit for the first half of the year was JPY 914 million, reflecting a year-on-year increase of 21.5% [9] - Annualized return on equity increased by 3.3 percentage points to 19.7% [9] - Operating cash flows were CHF 774 million, with net cash increasing by 94.3% to CHF 1.913 billion [9] Business Line Data and Key Metrics Changes - Revenue from the XTEP core brand increased by 4.5% to JPY 6,053 million, while the professional sports division, including Saucony and Merrell, saw revenue growth of over 32% to JPY 785 million [8][16] - The mass market segment's gross profit increased by 4% to JPY 2,641 million, with a slight decrease in gross margin by 0.3 percentage points [15] - The professional sports division's operating profit surged nearly 2.4 times to JPY 79 million, with an operating profit margin improvement to 10% [17] Market Data and Key Metrics Changes - Over 300 marathons were held in China in the first half of the year, with more than 3 million participants, indicating a growing interest in running events [24] - The group's brands maintained high wear rates in major marathons, with Saucony achieving second place in overall wear rates at the Wuxi Marathon [25] Company Strategy and Development Direction - The company is focused on strengthening its core strategy of running, enhancing synergies among its brands, and expanding its product portfolio [23][35] - Plans include optimizing retail channel management, improving customer experience, and expanding into shopping malls and outlets [27] - The company aims to reinforce its position as China's leading running brand through flagship products and a professional to mass influence strategy [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term development of the sports industry, supported by government investments in public health and sports activities [3][5] - The company plans to implement refined operational management to improve efficiency and create greater returns for investors [6] - The outlook remains positive, with expectations of continued growth driven by the popularity of running and marathon events in China [24][36] Other Important Information - The company declared an interim dividend of HKD 0.18 per share, a year-on-year increase of 15.4%, maintaining a dividend payout ratio of 50% [9] - The company achieved an AA rating in the 2025 MSCI ESG rating, marking its fourth consecutive year of rating improvement [34] Q&A Session Summary Question: What is the outlook for the running market in China? - Management highlighted the increasing popularity of marathons, with over 300 events and 3 million participants in the first half of the year, indicating strong growth potential in the running market [24] Question: How does the company plan to enhance its brand image? - The company will continue to reinforce its high-end sports brand image through flagship products and marketing campaigns, particularly for Saucony [31][36] Question: What are the expectations for the professional sports division? - The professional sports division is expected to maintain a mid to high single-digit operating profit margin for the full year, with continued product launches and marketing efforts [17][36]

Core Viewpoint - Xtep Group reported a 7.1% year-on-year increase in revenue for the six months ending June 30, 2025, driven by growth in its main brand and professional sports division [1] Group 1: Financial Performance - Revenue from continuing operations reached 6.838 billion yuan, with the main brand revenue increasing by 4.5% to 6.053 billion yuan [1] - The professional sports division saw a significant revenue increase of 32.5%, amounting to 785 million yuan [1] - Gross profit margin for continuing operations was 45.0%, with operating profit rising by 9.1% to 1.305 billion yuan [1] - Profit attributable to ordinary shareholders was 914 million yuan, reflecting a 21.5% year-on-year growth, with basic earnings per share at 34.6 cents [1] - The company maintained healthy cash flow, with operating cash inflow of 774 million yuan [1] - The board declared an interim dividend of 0.18 HKD per share, a 15.4% increase, maintaining a payout ratio of 50.0% for 17 consecutive years [1] Group 2: Brand and Market Performance - The main brand showed strong performance in key marathon events in Xiamen, Wuxi, and Lanzhou, with the "160X" series running shoes helping athletes achieve record-breaking performances [1] - As of July 31, 2025, the brand assisted 107 elite athletes in winning 507 championships [1] - Saucony's overall wearing rate led among international brands, generating over 1 billion yuan in revenue [1] - The professional sports division's operating profit reached 78.6 million yuan, a substantial increase of 236.8% [1] Group 3: E-commerce and Future Outlook - E-commerce accounted for over 30% of the main brand's revenue, achieving double-digit year-on-year growth [2] - Xtep Youth has 1,564 stores in mainland China and launched the "Xtep Growth Shoes" series in August [2] - The company collaborated with eight authoritative organizations to release the "China Youth Sports Growth Blue Book" [2] - Xtep received "AA" ratings from MSCI ESG and Wind ESG, and joined the "Zero Emission of Hazardous Chemicals Organization" [2] - The company plans to focus on the running sector and initiate a direct-to-consumer model, expanding Saucony flagship stores and product lines [2]

Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The main brand of the company shows steady growth, with a low single-digit increase in revenue for Q2 2025, while Saucony's revenue grew by over 20% year-on-year, with a strategic adjustment in e-commerce channels leading to a reduction in low-priced products and tighter discounts [1][2] - The company expects Saucony's revenue to grow by 30-40% for the full year, maintaining its guidance despite a slowdown in Q2 due to strategic adjustments [2] - The Direct-to-Consumer (DTC) strategy will officially start in Q4 2025, aiming to optimize retail structure and improve operational efficiency [2] Financial Summary - The projected revenue for 2025 is approximately 14.39 billion, with a year-on-year growth of 6% [4] - The expected net profit for 2025 is around 1.37 billion, reflecting a year-on-year increase of 10.92% [4] - The earnings per share (EPS) is projected to be 0.50 yuan for 2025, with a price-to-earnings (P/E) ratio of 9.86 [4]

Financial Performance - Group revenue reached RMB 12,930 million, a 29.1% increase year-over-year[2,6] - Core Xtep brand revenue grew to RMB 11,128 million, representing a 25.9% increase[2,6] - Group's operating profit increased to RMB 1,464 million, a 4.9% increase[2,6] - Profit attributable to ordinary equity holders of the Company increased to RMB 922 million, a 1.5% increase[2,6] Core Xtep Brand Analysis - Core Xtep brand's operating profit increased to RMB 1,759 million, a 9.4% increase[2,81] - Core Xtep brand's net profit increased to RMB 1,345 million, a 10.7% increase[2,81] - Xtep Kids' revenue increased by 52% to RMB 1,671 million, accounting for 15% of the core Xtep brand's revenue in 2022[42] Brand Portfolio Performance - Athleisure brands (K-Swiss & Palladium) revenue increased by 44.4% to RMB 1,402 million[48,70] - Professional sports brands (Saucony & Merrell) revenue increased by 99.0% to RMB 400 million[55,70]

一场酝酿了 17 年的 "长跑"。 同样坚持跑步这项运动的还有特步创始人丁水波。他曾在多个场合阐述特步对跑步产业的重视，去年公司 上市 15 周年时说，"跑鞋一定是特步的绝对核心产品，如果要选一个品类代表特步，那一定是跑步。" 跑 鞋在特步整体营收中占比超过六成，高于安踏、李宁、361 等其他国产运动品牌集团。 今年上半年，特步集团营收同比增长 10.4% 至 72 亿元。其中特步主品牌表现稳定，收入约 58 亿元。索康 尼所在的专业运动板块营收 5.9 亿元，增幅达 72.2%，在整体营收中的占比升至 8%。得益于对成本的控 制，毛利率增长 3 个百分点至 46%。 双品牌聚焦 "跑步" 核心业务 特步收购盖世威、帕拉丁品牌五年后，今年 5 月，创始人丁水波家族决定以 1.51 亿美元将其私有化，减轻 对公司财务报表影响的同时，将资源集中在特步主品牌和高端跑鞋品牌索康尼（Saucony），更聚焦跑步 业务。 2019 年，在收购盖世威、帕拉丁的同一年，特步收购了索康尼和户外品牌迈乐（MERRELL）在中国市场 的所有权，以和 Wolverine 成立合资公司的方式在国内销售。 "跑步能按照自己的步伐来做一件 ...