HK Stock Market Move | XTEP INT'L (01368) falls nearly 5% again, last year's revenue increased by 4.2% year-on-year, Nomura expects competition in its core brand to intensify.

XTEP INT'L (01368) fell close to 5% again, with the stock dropping 7% yesterday. As of the time of reporting, it fell 4.81% to 4.55 Hong Kong dollars, with a turnover of 1.88 billion Hong Kong dollars. On the news front, XTEP INT'L announced its performance for 2025 yesterday, with revenue from continuing operations increasing by 4.2% to 14.151 billion yuan, and net profit attributable to ordinary shareholders increasing by 10.8% to 1.372 billion yuan, reaching a record high. It is recommended to distribute a final dividend of 9.5 Hong Kong cents per share, with a full year dividend payout ratio of 50.4%. During the period, revenue from the main XTEP brand increased by 1.5% to 12.515 billion yuan, and revenue from the professional sports division increased by 30.8% to 1.636 billion yuan. Huaxi pointed out that XTEP's performance last year met market expectations, with net profit growth higher than revenue mainly due to the inclusion of a loss of 67 million yuan from KP last year; excluding this impact, net profit increased by 5% year-on-year. Operating cash flow decreased mainly due to an increase in inventory. Nomura believes that XTEP's revenue increased by 4% year-on-year last year, slightly lower than the market and the bank's expectations; net profit increased by 11% year-on-year, roughly in line with expectations. The bank expects that competition for XTEP's core brand will intensify, and while Saucony contributes only a low double-digit percentage to the company's total revenue, it is expected that the company's revenue will only increase by 4% year-on-year this year.