XTEP INT'L (01368) fell nearly 5% again, following a 7% drop in the previous session. At the time of writing, the stock was down 4.81% to HK$4.55, with a turnover of HK$188 million. The company recently announced its 2025 results, reporting a 4.2% year-on-year increase in revenue from continuing operations to RMB 14.151 billion. Profit attributable to ordinary equity holders rose 10.8% to a record high of RMB 1.372 billion. A final dividend of 9.5 HK cents per share was proposed, resulting in a full-year dividend payout ratio of 50.4%. Revenue for the core XTEP brand grew 1.5% to RMB 12.515 billion during the period, while the professional sports segment saw a 30.8% increase to RMB 1.636 billion. Huaxi Securities noted that last year's performance was in line with market expectations, with net profit growth outpacing revenue growth partly due to an RMB 67 million loss from KP included in the previous year; excluding this impact, net profit increased by 5%. The decline in net operating cash flow was primarily attributed to increased inventory. Nomura observed that XTEP's annual revenue growth of 4% was slightly below market and its own expectations, while the 11% rise in net profit was largely in line with forecasts. The firm anticipates intensified competition for XTEP's core brand and expects Saucony to contribute only low double-digits to total revenue, leading to a projected revenue growth of just 4% for the current year.
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