Zheshang: maintain XTEP INT'L (01368) "buy" rating, main brand accelerates O2O layout, Skechers offline sales growth

China Investment Securities released a research report stating that XTEP INT'L (01368) brand matrix has a clear positioning. The Xtep brand, as a leader in the mass market running field, continues to be favored by consumers for its professionalism and high cost performance. The star running shoes represented by the 160X series and the rich running-related events and athlete resources continue to drive the brand's growth. Saucony and Merrell, as representatives of high-end and cross-country running brands, continue to expand their customer base. The report remains positive about the medium to long-term stable growth trend, with an expected dividend ratio of 50% in 2025, corresponding to a dividend yield of 4.6%, and maintains a "buy" rating. The report states that in the third quarter of 2025, Xtep's main brand revenue showed a low single-digit growth trend, maintaining a stable growth momentum; Saucony's revenue increased by more than 20% year-on-year, with offline channels still growing rapidly and e-commerce adjustments nearing completion. The company is expected to achieve a year-on-year growth in net profit attributable to shareholders of +10.6%/+11.0%/+11.0% to RMB 1.37/1.52/1.69 billion in 2025, 2026, and 2027 respectively, corresponding to a PE of 11/10/9X based on the current market value.