CICC: Maintain the 'Outperform' rating for Xtep International, with target price raised to 6.9 Hong Kong dollars

Jinshi data news on January 10th, Zhongjin released a research report stating that it maintains the ‘outperform the industry’ rating for Xtep International (01368.HK), considering that the profits of Gaisiwei and Paladin brands are reduced after the divestiture, and raises the 2024 EPS forecast by 4% to 0.46 yuan, basically maintaining the 2025 EPS forecast of 0.52 yuan, and introducing the 2026 EPS forecast of 0.59 yuan. Switch the valuation to 2025, and slightly raise the target price by 3% to 6.9 Hong Kong dollars. The company announced the 4Q24 operating performance: Xtep’s main brand retail sales increased by a high single-digit percentage year-on-year, with retail discounts ranging from seventy to seventy-five percent; Saucony brand retail sales increased by about 50% year-on-year.