XTEP INT'L (01368) surged over 5% again, rising 5.12% to HK$6.77 at the time of writing, with trading volume reaching HK$65.272 million.

On the news front, XTEP INT'L recently released its 2025 interim results, with the group achieving revenue of RMB 6.838 billion during the period, representing a year-on-year increase of 7.14%. Profit attributable to ordinary shareholders reached RMB 914 million, up 21.47% year-on-year. The company declared an interim dividend of 18 HK cents, with scrip dividend option available, compared to 15.6 HK cents in the same period last year.

The announcement noted that revenue growth was primarily driven by the mass sports segment, which saw revenue increase 4.5% to RMB 6.1 billion. This growth was mainly attributed to strong performance in online channels, with significant increases in consumer engagement and sales.

Goldman Sachs pointed out that XTEP INT'L's net profit for the first half of the year exceeded the firm's forecast by 12%, primarily benefiting from other income and gains that were higher than expected, while core business revenue met expectations. Gross margin and recurring operating profit margin were slightly above Goldman Sachs' predictions. Additionally, regarding the Saucony brand, Goldman Sachs maintains a constructive view on its long-term sales and profitability prospects.

CMB International believes that XTEP INT'L's first-half performance exceeded expectations, with the third quarter retail sales growth trend for XTEP being quite favorable. The report cited management indicating that both the core XTEP brand and Saucony brand experienced accelerated year-on-year retail sales growth in July this year.