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>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

<ul><li>1Q24 operating numbers were in line with both market and our expectation.</li><li>But we have started to see retail sales growth acceleration since late-Mar 2024, after the launches of more entry-level or value-for-money products like the 360X running shoes.</li><li>With that and the boost from e-commerce channel, we believe the company’s guidance of faster growth, better discounts, and better inventory level from 2Q24E onward is achievable. </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.

1Q24 operating numbers were in line with both market and our expectation.But we have started to see retail sales growth acceleration since late-Mar 2024, after the launches of more entry-level or value-for-money products like the 360X running shoes.With that and the boost from e-commerce channel, we believe the company’s guidance of faster growth, better discounts, and better inventory level from 2Q24E onward is achievable. 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) - Steady Recovery Shall Continue with High Yield

Analyst

Steve Zhou, CFA

<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 in-line 2023 results, with net profit up 12% yoy and sales up 11% yoy.  2024 outlook was also satisfactory.  </li>
<li>The company paid out 50% of its earnings in dividend, which amounted to a 5% dividend yield at current share price of HKD5.04.</li>
<li>The company is currently trading at 10x 2024 PE (assuming a conservative 10% net profit growth in 2024).</li>
</ul>



Xtep International (1368 HK) announced in-line 2023 results, with net profit up 12% yoy and sales up 11% yoy.  2024 outlook was also satisfactory.  
The company paid out 50% of its earnings in dividend, which amounted to a 5% dividend yield at current share price of HKD5.04.
The company is currently trading at 10x 2024 PE (assuming a conservative 10% net profit growth in 2024).


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

<ul><li>Xtep’s FY23 results were dragged by weak e-commerce sales but inline with market consensus.</li><li>Due to the macro uncertainty and high base, Xtep’s management has put aside its 5-year growth target and introduced a rather conservative target in FY24E.</li><li>This is inline with our view that Xtep may not be our sector top pick in FY24E.</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 FY23 results were dragged by weak e-commerce sales but inline with market consensus.Due to the macro uncertainty and high base, Xtep’s management has put aside its 5-year growth target and introduced a rather conservative target in FY24E.This is inline with our view that Xtep may not be our sector top pick in FY24E.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) - Stay Prudent as Channel Health Is the Priority

<ul><li>4Q23 results were inline with management guidance.</li><li>Despite the improved inventory level, we are still conservative on Xtep’s non-running segment, ASP and e-commerce growth in FY24E.</li><li>As a result, we have further cut our NP forecasts by 7-9% in FY24E-25E. But due to its fairly distressed valuation of 8x/ 7x FY23E/ 24E P/E, we maintain BUY.</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.

4Q23 results were inline with management guidance.Despite the improved inventory level, we are still conservative on Xtep’s non-running segment, ASP and e-commerce growth in FY24E.As a result, we have further cut our NP forecasts by 7-9% in FY24E-25E. But due to its fairly distressed valuation of 8x/ 7x FY23E/ 24E P/E, we maintain BUY.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) – 4Q23 Was Inline but Macro Is Still Challenging

China

Xtep International Holdings Ltd. designs, manufactures, and markets sportwear. The Company produces footwear, apparel, and accessories.

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Xtep International (1368 HK)

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

Xtep (1368 HK) - Steady Recovery Shall Continue with High Yield

With that and the boost from e-commerce channel, we believe the company’s guidance of faster growth, better discounts, and better inventory level...

CMB International