Haitong International released a research report stating that maintaining Tep International's “superior to the market” rating, the expected net profit for 2024-2026 will be 11.5/13.2/1.54 billion yuan, respectively, up 11.2%/14.6%/17% year on year, with a target price of HK$6.7. The company's revenue and profit for 2023 are in line with expectations. According to the report, running, children, and online are expected to become growth engines for the XTEP brand in 2024. The XTEP brand will continue to deeply cultivate the mass sports market and launch more cost-effective products to gain market share. The bank expects the growth rate of XTEP's main brand to be medium/high in 2024. Children are faster than adults, and online is slightly faster than offline. The main brand expense ratio is expected to fall back to a reasonable range of 11-13%, and the profit margin level is expected to increase. Fashion sports JV may have strong double-digit growth, and at the same time, it will also increase investment in advertising expenses. It is estimated that the loss will not be more than the amount of the past two years. Professional sports JVs are expected to continue their relatively rapid double-digit growth. In '24, Sokoni and Telstep International are expected to raise gross margin levels and reduce deductions for joint revenue, and the profit contribution of professional sports JVs is expected to increase.