Interim Results: XTEP INT'L reported a 7.1% increase in revenue from continuing operations, with the professional sports segment, particularly Saucony, experiencing a significant 32.5% growth.
Revenue Forecast: CFO Dona Ding maintains a full-year revenue growth forecast of 30-40% for the professional running segment and anticipates a 10% rise in annual earnings, with a dividend payout ratio around 50%.
Store Strategy: The number of Xtep brand stores decreased by about 22 since the end of last year, as the company focuses on improving store efficiency rather than expanding the number of locations.
Future Plans: Saucony plans to open its first store in Hong Kong in January 2026, while the CEO expresses confidence in the growing sports industry despite current macroeconomic challenges.
Wall Street analysts forecast 01368 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01368 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 01368 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01368 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 5.310
Low
Averages
High
Current: 5.310
Low
Averages
High
Goldman Sachs
Goldman Sachs
Buy
downgrade
Al Analysis
2025-10-20
Reason
Goldman Sachs
Goldman Sachs
Price Target
Al Analysis
2025-10-20
downgrade
Buy
Reason
The analyst rating for XTEP INT'L (01368.HK) is maintained as a "Buy" by Goldman Sachs despite a cut in the target price from HKD7.1 to HKD6.8. The reasoning behind this rating includes the following points:
1. Core Brand Performance: The retail sales growth of the core brand Xtep met expectations, indicating stability in its primary market segment.
2. Future Growth Projections: The company reiterated its full-year results guidance, projecting positive growth for the Xtep brand and over 30% growth for the Saucony brand, along with a net profit increase of more than 10%.
3. Valuation Consideration: Goldman Sachs considers the forecasted P/E ratio of 9 times for 2026 to be reasonable, suggesting that the stock is undervalued relative to its earnings potential.
4. Market Sentiment: The target price adjustment reflects short-term market sentiment influenced by overall weak industry demand and discount trends, rather than a fundamental deterioration in the company's prospects.
Overall, the combination of stable core brand performance, positive growth outlook, and reasonable valuation supports the "Buy" rating despite the challenges in the broader market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
