Equity Analyst

Steve Zhou, CFA

Over 13 years of professional experience covering mainly Asian consumer companies in sell-side and buy-side.

Xtep International (1368 HK):  Strong Headline Retail Sales Growth In 4Q23 But Quality Is Still Low

Xtep International (1368 HK):  Valuation Too Cheap For A >10% Growth Stock

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xtep-international-holdings" target="_blank" data-smartkarma-citation="entities:18118:1" rel="noopener">Xtep International (1368 HK)</a> announced yesterday strong retail sales of high-teens growth in 3Q23.</li>
<li>Though the growth was at the expense of slightly higher overall discounts of 25-30% off during the quarter. </li>
<li>I prefer Anta over Xtep given higher visibility in Anta's bottom line, as Xtep's growth continues to be of lesser quality than Anta's. </li>
</ul>



Xtep International (1368 HK) announced yesterday strong retail sales of high-teens growth in 3Q23.
Though the growth was at the expense of slightly higher overall discounts of 25-30% off during the quarter. 
I prefer Anta over Xtep given higher visibility in Anta's bottom line, as Xtep's growth continues to be of lesser quality than Anta's. 


Xtep International (1368 HK):  Strong 3Q23 Retail Sales But At The Expense Of Higher Discounts