Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The main brand of the company has shown steady growth in Q3 2025, while the subsidiary brand, Saucony, continues to maintain rapid growth [7] - The company has a healthy inventory turnover of four to four and a half months, indicating stable retail sales despite external factors [7] - The company is expanding its presence in the outlet channel and overseas markets, enhancing its competitive edge [7] - The company is focusing on product iteration and category expansion to drive growth in high-end brands [7] - Long-term growth potential is supported by continuous R&D investment and a strong brand image [7] Financial Summary - Revenue projections for 2025 are estimated at 14,486.83 million RMB, with a year-on-year growth rate of 6.70% [6] - Net profit for 2025 is projected to be 1,384.97 million RMB, reflecting a year-on-year growth of 11.84% [6] - Earnings per share for 2025 is expected to be 0.49 RMB [6] - The company’s return on equity (ROE) is projected to be 13.73% in 2025 [6] - The price-to-earnings (P/E) ratio is expected to be 10.75 in 2025 [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The main brand shows stable fundamentals, and the product experience of the professional brand, Saucony, continues to improve [5] - The company reported a revenue of 6.838 billion RMB for the first half of 2025, representing a year-on-year growth of 7.1%, which aligns with expectations [7] - The gross profit for the same period was 3.074 billion RMB, with a year-on-year increase of 6.9%, and the net profit attributable to shareholders was 914 million RMB, reflecting a year-on-year growth of 21.5% [7] - The company maintains a high dividend payout ratio, distributing an interim dividend of 0.18 HKD per share, with a payout ratio of 50% [7] Financial Performance Summary - Revenue projections for the company are as follows: - 2023: 14,345.51 million RMB - 2024: 13,577.22 million RMB (decrease of 5.36%) - 2025E: 14,486.83 million RMB (increase of 6.70%) - 2026E: 15,668.76 million RMB (increase of 8.16%) - 2027E: 17,186.96 million RMB (increase of 9.69%) [6] - Net profit attributable to shareholders is projected as follows: - 2023: 1,030.01 million RMB - 2024: 1,238.40 million RMB (increase of 20.23%) - 2025E: 1,384.97 million RMB (increase of 11.84%) - 2026E: 1,568.61 million RMB (increase of 13.26%) - 2027E: 1,787.65 million RMB (increase of 13.96%) [6] - The company’s return on equity (ROE) is projected to be: - 2023: 11.62% - 2024: 14.23% - 2025E: 13.73% - 2026E: 13.46% - 2027E: 13.30% [6] Brand Performance - The main brand, Xtep, achieved a revenue of 6.053 billion RMB in the first half of 2025, with a year-on-year growth of 4.5% [7] - The professional sports segment, including Saucony and Maile, saw a revenue increase of 32.5% to 785 million RMB in the same period [7] - The company is focusing on product iteration and category expansion to drive growth in high-end brands [7]