External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Xtep’s 4Q24 results were slightly better than expected (retail sales growth was inline but the inventory level was better than expected).</li><li>And we are delighted to hear that sales trend in Jan 2025 is decent and management outlook for FY25E has turned more positive.</li><li>However, we will continue to stay prudent at the moment given the macro uncertainty. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep’s 4Q24 results were slightly better than expected (retail sales growth was inline but the inventory level was better than expected).And we are delighted to hear that sales trend in Jan 2025 is decent and management outlook for FY25E has turned more positive.However, we will continue to stay prudent at the moment given the macro uncertainty. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep (1368 HK) - A Beat in 4Q24 with a Constructive Outlook

<ul><li>Xtep’s 3Q24 retail sales growth was weak, but that was well expected.</li><li>On the other hand, inventory level and discounts were still decent and better-thanexpected, in our view.</li><li>We are prudent about sales growth in 4Q24E and FY25E but still confident about the respective margin expansions, supported by slowdown in store expansion, limited retail discounts and active control over various opex. Maintain BUY and raise TP to HK$ 7.50.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep’s 3Q24 retail sales growth was weak, but that was well expected.On the other hand, inventory level and discounts were still decent and better-thanexpected, in our view.We are prudent about sales growth in 4Q24E and FY25E but still confident about the respective margin expansions, supported by slowdown in store expansion, limited retail discounts and active control over various opex. Maintain BUY and raise TP to HK$ 7.50.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep (1368 HK) - Double 11 Is Critical but NP Target Is Still Intact

<ul><li>The sportswear industry is still under immense pressure.</li><li>However, we are still confident in the mid to long run. Going into 2H24E, we still believe Xtep can continue its outperformance, supported by: 1) successful new products, 2) robust e-commerce sales and platform expansion, 3) relatively more wholesale business nature, 4) robust growth from the Saucony brand and 5) reduced losses after the sales of K&amp;P.</li><li>The stock’s valuation is fairly attractive, at 10x FY24E P/E and 14% FY24E yield.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The sportswear industry is still under immense pressure.However, we are still confident in the mid to long run. Going into 2H24E, we still believe Xtep can continue its outperformance, supported by: 1) successful new products, 2) robust e-commerce sales and platform expansion, 3) relatively more wholesale business nature, 4) robust growth from the Saucony brand and 5) reduced losses after the sales of K&amp;P.The stock’s valuation is fairly attractive, at 10x FY24E P/E and 14% FY24E yield.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep (1368 HK) - Better Margins Despite Cautious Sales Growth

<ul><li>The sportswear industry remains under great pressure, but we believe Xtep is still one of a few brands that can mildly outperform and improve sequentially in 2H24E, because of: 1) successful new product launches such as the 360X</li><li>2) robust e-commerce sales growth (esp. the Douyin platform)</li><li>3) wholesale business nature (therefore drags from operating deleverage is limited)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The sportswear industry remains under great pressure, but we believe Xtep is still one of a few brands that can mildly outperform and improve sequentially in 2H24E, because of: 1) successful new product launches such as the 360X2) robust e-commerce sales growth (esp. the Douyin platform)3) wholesale business nature (therefore drags from operating deleverage is limited)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep (1368 HK) - Cautiously Optimistic After a Resilient 2Q24

<ul><li>Overall, we find the arrangement accretive (thus revising up FY24E-26E NP by 2% to 5%) for Xtep in the short run and turn more positive on its near-term outlook.</li><li>With its rather undemanding valuation (10x FY24E P/E and 14% yield), we maintain BUY with a new TP of HK$7.63, based on 14x FY24E P/E.</li><li>Mr. Ding has proposed to buy K&amp;P and reshuffle the deal with Hillhouse; special dividend will also be paid.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Overall, we find the arrangement accretive (thus revising up FY24E-26E NP by 2% to 5%) for Xtep in the short run and turn more positive on its near-term outlook.With its rather undemanding valuation (10x FY24E P/E and 14% yield), we maintain BUY with a new TP of HK$7.63, based on 14x FY24E P/E.Mr. Ding has proposed to buy K&amp;P and reshuffle the deal with Hillhouse; special dividend will also be paid.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Xtep (1368 HK) - Huge Boost in Short-Run Growth with High Yield

China

Xtep International Holdings Limited designs, develops, manufactures, markets, and sells sportswear, including footwear, apparel, and accessories for adults and children. The company operates a multi-brand portfolio, featuring its core Xtep brand alongside international brands such as Saucony and Merrell. It was founded in 1987 and is headquartered in Xiamen, Fujian, China.

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Xtep (1368 HK)

Xtep (1368 HK) - A Beat in 4Q24 with a Constructive Outlook

Xtep’s 4Q24 results were slightly better than expected (retail sales growth was inline but the inventory level was better than expected).

CMB International

Xtep (1368 HK) - Double 11 Is Critical but NP Target Is Still Intact

Xtep’s 3Q24 retail sales growth was weak, but that was well expected. On the other hand, inventory level and discounts were still decent and better...

CMB International

Xtep (1368 HK) - Better Margins Despite Cautious Sales Growth

We have adjusted our FY24E/ 25E/ 26E net profit by 0%/ -4%/ -3% to factor in slightly slower sales growth but a much better GP margin.

CMB International

Xtep (1368 HK) - Cautiously Optimistic After a Resilient 2Q24

The sportswear industry remains under great pressure, but we believe Xtep is still one of a few brands that can mildly outperform and improve...

CMB International

Xtep (1368 HK) - Huge Boost in Short-Run Growth with High Yield

Overall, we find the arrangement accretive (thus revising up FY24E-26E NP by 2% to 5%) for Xtep in the short run and turn more positive on its near...

CMB International

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