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>What is new? Xtep’s retail sales in 3Q23 grew by high-teens YoY, in line with CMBI est. of 18%.</li><li>In terms of breakdown, offline sales were faster than online and Xtep Kids had a 30%+ growth and running category also delivered a 25%+ sales growth.</li><li>Retail discount was at 25%-30% off, in line with management’s comments in Aug 2023. </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.

What is new? Xtep’s retail sales in 3Q23 grew by high-teens YoY, in line with CMBI est. of 18%.In terms of breakdown, offline sales were faster than online and Xtep Kids had a 30%+ growth and running category also delivered a 25%+ sales growth.Retail discount was at 25%-30% off, in line with management’s comments in Aug 2023. 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) – An Inline 3Q23 and Strong FY24E Guidance

<ul><li>2H23 results was roughly inline (we think inventory and A&amp;P expenses are not a concern).</li><li>Management reiterated the listed co-level FY23E guidance, while retail sales trend is resilient and improving in Jul-Aug 2023.</li><li>Hence, we maintain BUY given its attractive valuation of 16x FY23E P/E and 0.7x PEG. </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.

2H23 results was roughly inline (we think inventory and A&amp;P expenses are not a concern).Management reiterated the listed co-level FY23E guidance, while retail sales trend is resilient and improving in Jul-Aug 2023.Hence, we maintain BUY given its attractive valuation of 16x FY23E P/E and 0.7x PEG. 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) – The Growth Story Is Intact Despite Volatility

<ul><li>Even though 2Q23 results was just roughly inline (slightly slower retail sales growth but a strong retail discounts), it was certainly industry leading with high quality.</li><li>Management remained confident and reiterated their list co-level FY23E guidance despite the macro headwinds.</li><li>Hence, we maintain BUY given its attractive valuation of 16x FY23E P/E and 0.7x PEG</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.

Even though 2Q23 results was just roughly inline (slightly slower retail sales growth but a strong retail discounts), it was certainly industry leading with high quality.Management remained confident and reiterated their list co-level FY23E guidance despite the macro headwinds.Hence, we maintain BUY given its attractive valuation of 16x FY23E P/E and 0.7x PEGContent 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 High-Quality 2Q23 and Guidance Unchanged

Thematic (Sector/Industry)

<ul><li>On one hand, retail sales growth in 5-1 Golden Week was a beat (after a soft Feb-Mar and an inline Apr).</li><li>On the other hand, retail discounts surprisingly widened due to increased competition from the de-stocking by brands like Adidas and Li Ning.</li><li>While fundamentals (sales, discounts and inventory) are trending good into 2H23E and setting up for a decent FY24E, we should still keep our eyes on the end demand and intensity of competition. </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.

On one hand, retail sales growth in 5-1 Golden Week was a beat (after a soft Feb-Mar and an inline Apr).On the other hand, retail discounts surprisingly widened due to increased competition from the de-stocking by brands like Adidas and Li Ning.While fundamentals (sales, discounts and inventory) are trending good into 2H23E and setting up for a decent FY24E, we should still keep our eyes on the end demand and intensity of competition. 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.

China Sportswear Sector – 5-1 sales beat but competition intensified

<ul><li>Beat in 1Q23E was industry leading and FY23E guidance was partly raised. Hence, we maintain</li><li>BUY given its attractive outlook and valuation (0.8x PEG).</li><li>1Q23 retail sales growth was an industry leading beat</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.

Beat in 1Q23E was industry leading and FY23E guidance was partly raised. Hence, we maintainBUY given its attractive outlook and valuation (0.8x PEG).1Q23 retail sales growth was an industry leading beatContent 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) – Strong 1Q23 with retail sales guidance raised

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) – An Inline 3Q23 and Strong FY24E Guidance

In terms of breakdown, offline sales were faster than online and Xtep Kids had a 30%+ growth and running category also delivered a 25%+ sales growth.

CMB International

Xtep (1368 HK) – The Growth Story Is Intact Despite Volatility

Management reiterated the listed co-level FY23E guidance, while retail sales trend is resilient and improving in Jul-Aug 2023.

CMB International

Xtep (1368 HK) – A High-Quality 2Q23 and Guidance Unchanged

Even though 2Q23 results was just roughly inline (slightly slower retail sales growth but a strong retail discounts), it was certainly industry...

CMB International

China Sportswear Sector – 5-1 sales beat but competition intensified

While fundamentals (sales, discounts and inventory) are trending good into 2H23E and setting up for a decent FY24E, we should still keep our eyes...

CMB International

Xtep (1368 HK) – Strong 1Q23 with retail sales guidance raised

Beat in 1Q23E was industry leading and FY23E guidance was partly raised. Hence, we maintain BUY given its attractive outlook and valuation (0.8x PEG).

CMB International

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