Haitong International: Robust sales growth in Q4 of 2025, Super Stores exceed the store-opening target set at the beginning of the year

Investment Recommendations:The company focuses on the mass professional sports sector, with industry-leading sales growth from the beginning of the year to date. At the same time, the company emphasizes technological innovation, continuous product iteration and upgrades, ongoing optimization of channel structure, and rapid expansion of the new business format Super Stores. We forecast net profit attributable to shareholders for 2025-27 to be RMB 1.27/1.40/1.56 billion, corresponding to PE ratios of 8.5X/7.7X/6.9X respectively. For 2025, we assign a PE ratio of 10X, and based on an exchange rate of 1 HKD = 0.9 RMB, the corresponding target price is HKD 6.83. We maintain a 'Buy' rating.

Robust sales growth in Q4 of 2025.In Q4 of 2025, offline/main brand online/children's wear sales grew by 10%/high teens/10% YoY, respectively, compared to Q3 of 2025 (which grew by 10%/20%/10%, respectively). The main brand’s online sales slightly slowed down, but overall sales growth remained relatively robust and impressive.

The premium stores have exceeded the full-year target for store openings. ONEWAY's operations are in line with expectations, with plans to open more stores in 2026.By the end of December 2025, 361 Degrees premium stores had opened 126 locations, including 21 children's stores, exceeding the initial goal of 100 store openings set at the beginning of 2025. In Q2/Q3/Q4 of 2025, 39/44/33 premium stores were opened respectively, and we expect a net increase in new store openings for 2026. The outdoor brand ONEWAY is performing as expected, with six stores currently open, and we anticipate that ONEWAY will also have expansion plans for 2026.

Continuing to strengthen investment in core products and professional competitions.In terms of products, the top-tier carbon running shoes Fei Ran 5 and 5 Future have been launched, along with basketball shoes Joker2 by Nikola Jokic and AG6 by Aaron Gordon, which were well-received following their global release at the Denver home arena. On the competition front, the 3rd Track 10KM Speed Racing Final was successfully held, sponsoring the Tangshan Marathon and Fuzhou Marathon, while becoming the official supplier of the WTCC Continental Tennis Tournament for the first time. We expect tennis shoes to be launched in Q3 of 2026.

Risk Warning:Deterioration of the retail environment, intensifying industry competition, and worsening brand partnership relations.