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<Research> Xtep International (01368.HK) 1Q Core Brand Sales Up Low Single-Digit YoY, Lags Peers; TP Cut to HKD6.9
Recommend 5 Positive 2 Negative 5 |
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Nomura published a research report noting that Xtep International (01368.HK) announced its 1Q operating data, with its core "Xtep" brand recording low single-digit YoY sales growth, below the high single-digit growth of the Anta brand and the 10% growth of 361 Degrees (01361.HK). The broker said the data were weaker than market expectations, mainly because about 70% of Xtep's stores are located outside shopping malls, while customer traffic has been concentrated in shopping malls, affecting the company. Nomura expects Xtep's FY2026 profit margin to be dragged down by one-off costs related to the opening of DTC stores and a share incentive scheme. It therefore lowered its FY2026 earnings forecast by 7.6%, but anticipates earnings to recover in FY2027. The broker maintained its "Buy" rating to reflect its undemanding valuation (FY2026 forecast PE of 9.7x), but cut its TP from HKD7.5 to HKD6.9. (ec/j) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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