Xtep International Holdings (1368) AI Stock Analysis

• Market Cap: $14.94B
• Dividend Yield: 4.93%
• Average Volume (3M): 8.61M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.00
• Revenue Growth: -12.29%
• EPS Growth: 21.00%
• Country: HK
• Employees: 8,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.35
• Shares Outstanding: 2,806,072,300
• 10 Day Avg. Volume: 7,864,409
• 30 Day Avg. Volume: 8,606,806
• PEG Ratio: 1.74
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 14.82
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 8.97
• 1Y Price Target: $7.63
• Price Target Upside: 35.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$6.50 ▲(15.25% Upside)

Xtep International Holdings demonstrates strong financial performance with robust margins and effective cash flow management, which are the most significant factors influencing the score. The technical analysis indicates weak momentum, which slightly dampens the overall outlook. The valuation is reasonable, with a solid dividend yield providing additional appeal.

Positive Factors

Cash Generation

Strong cash generation from operations indicates effective cash management and the ability to fund growth initiatives without relying heavily on external financing.

Gross Profit Margin

A consistently high gross profit margin reflects efficient production and cost management, providing a competitive advantage and supporting long-term profitability.

Balance Sheet Stability

A stable balance sheet with increasing equity suggests financial health and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue can indicate challenges in market demand or competitive pressures, potentially impacting future growth and profitability if not addressed.

Increased Debt Levels

An increase in debt levels could strain financial flexibility and cash flow, posing risks to long-term stability if leverage continues to rise without corresponding revenue growth.

Revenue Growth Trend

Negative revenue growth indicates potential market challenges or operational issues, which could affect the company's ability to sustain its market position and profitability over time.

Xtep International Holdings Business Overview & Revenue Model

Company Description

Xtep International Holdings Limited is a leading sportswear brand based in China, primarily engaged in the design, development, manufacturing, and marketing of athletic footwear, apparel, and accessories. The company operates in the sportswear sector and targets a diverse customer base, focusing on both professional athletes and casual sports enthusiasts. Xtep's core products include running shoes, sports clothing, and a range of accessories designed to enhance athletic performance and lifestyle.

How the Company Makes Money

Xtep International Holdings generates revenue primarily through the sale of its branded sportswear products across various channels, including retail stores, e-commerce platforms, and wholesale partnerships. The company operates a vast distribution network that includes self-operated stores, franchised outlets, and strategic collaborations with major retailers. Key revenue streams include direct sales from its own retail stores, sales through third-party retailers, and online sales through its e-commerce channels. Additionally, Xtep has engaged in collaborations and sponsorships with athletes and sports events, enhancing brand visibility and driving sales. The company's focus on product innovation and expanding its market presence, particularly in the growing Chinese sportswear market, further contributes to its revenue generation.

Xtep International Holdings Financial Statement Overview

Summary

Xtep International Holdings shows strong financial performance with consistent revenue and profit growth, robust gross margins, and effective cash flow management. The balance sheet is stable with moderate leverage, but the recent decline in revenue and increased debt levels could pose potential risks.

Income Statement

Xtep International Holdings has demonstrated solid revenue growth over the years, with a notable increase from 2019 to 2023. The gross profit margin remains robust, consistently above 40%, indicating efficient production and cost management. However, the recent decline in total revenue from 2023 to 2024 needs attention. Net profit margins are healthy, reflecting strong bottom-line management.

Balance Sheet

The company maintains a stable equity position with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio is moderate, suggesting balanced leverage, though it slightly increased in 2023. The equity ratio indicates a solid foundation, but the slight increase in total debt warrants monitoring for future stability.

Cash Flow

Operating cash flow continues to grow, showcasing solid cash generation from operations. The free cash flow has been positive, with a significant increase in recent years, reflecting good cash management. The free cash flow to net income ratio indicates effective conversion of income to cash, though the fluctuations in capital expenditures should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.79B	13.58B	14.35B	12.93B	10.01B	8.17B
Gross Profit	4.09B	5.87B	6.05B	5.29B	4.18B	3.20B
EBITDA	1.62B	2.09B	1.93B	1.72B	1.55B	1.04B
Net Income	943.12M	1.24B	1.03B	921.69M	908.34M	513.03M
Balance Sheet
Total Assets	17.17B	15.97B	17.33B	16.49B	14.62B	12.57B
Cash, Cash Equivalents and Short-Term Investments	3.75B	2.98B	3.29B	3.91B	3.93B	3.47B
Total Debt	2.45B	3.10B	3.80B	3.47B	2.74B	2.36B
Total Liabilities	7.30B	7.27B	8.40B	8.19B	6.63B	5.27B
Stockholders Equity	9.88B	8.70B	8.86B	8.24B	7.93B	7.22B
Cash Flow
Free Cash Flow	338.63M	909.58M	759.21M	193.03M	33.96M	109.07M
Operating Cash Flow	386.88M	1.23B	1.25B	571.83M	701.35M	320.11M
Investing Cash Flow	-83.50M	651.40M	-915.03M	-872.60M	-328.63M	573.37M
Financing Cash Flow	-184.21M	-2.20B	-461.44M	-236.10M	96.26M	-380.36M

Xtep International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1368, the sentiment is Positive. The current price of 5.64 is above the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.66, and above the 200-day MA of 5.54, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1368.

Xtep International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3709	80 Outperform	HK$5.35B	10.28	10.59%	4.89%	-7.34%	-28.66%
1368	74 Outperform	$14.94B	9.67	15.27%	4.93%	-12.29%	21.00%
6110	68 Neutral	HK$19.60B	15.08	12.82%	9.22%	-5.66%	-31.36%
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.12%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1817	54 Neutral	HK$304.00M	8.42	4.51%	―	-7.95%	98.95%
1223	42 Neutral	HK$4.49B	-29.56	-5.37%	0.34%	1.21%	-5.68%

Xtep International Holdings Corporate Events

Xtep International Adjusts Convertible Bond Prices Following Dividend Declaration

Xtep International Holdings Limited has announced adjustments to the conversion prices of its 2021, 2024, and 2025 Convertible Bonds following the declaration and payment of a 2025 Interim Dividend. These adjustments, which have already taken effect, reflect a decrease in conversion prices for the bonds, impacting the company’s financial structuring and potentially influencing investor decisions.

Xtep International Reports Q3 2025 Growth in Mainland China

Xtep International Holdings Limited reported a low single-digit year-on-year growth in retail sell-through for its core Xtep brand in Mainland China for the third quarter of 2025, with a retail discount level of 25%–30% and channel inventory turnover of 4 to 4.5 months. Meanwhile, its Saucony brand experienced more than 20% year-on-year growth in retail sell-through, highlighting its strong performance. The announcement is based on unaudited operational data, and stakeholders are advised to exercise caution when dealing with the company’s shares.

Xtep International Announces Interim Dividend with Scrip Option

Xtep International Holdings Limited has announced an interim dividend of HKD 0.18 per share for the six months ending June 30, 2025, with a scrip option available to shareholders. The scrip shares will be issued at a conversion price of HKD 6.407, and the payment date is set for October 30, 2025, reflecting the company’s commitment to providing returns to its shareholders.