Zhitong Finance and Economics APP learned that Changjiang Securities issued a research report stating that it maintained a "buy" rating on Xtep Int'l (01368), considering that KP has not been divested yet, and it is estimated that the net profits attributable to shareholders from 2024 to 2026 will be CNY 1.17 billion, CNY 1.33 billion, and CNY 1.48 billion, respectively, with a year-on-year growth rate of 14%/13%/12%. The company released its 2024Q2 retail data, and the revenue of Xtep's main brand increased by about 10% year-on-year, with discounts of up to 75% and an inventory turnover ratio of about 4 months. The revenue performance met expectations.

Looking ahead, the company's inventory and discounts will return to a healthy level, and there is still room for improvement in the gross margin and A&P expense ratio of the main brand. The professional sports brand will continue to achieve high growth and contribute to performance. The divestment of KP in the second half of the year is expected to further increase the performance in the next two years. In addition, a special dividend of USD 0.151 billion will be paid after the divestment, corresponding to a dividend yield of about 9%, highlighting the high dividend yield cost performance. In the medium and long term, Saucony has entered the right track and formed differences and complementarities with Xtep's main brand in the running field. With continued cultivation, it is expected to develop into the second growth curve of the group.