Xtep International Holdings (1368) AI Stock Analysis

• Market Cap: $15.02B
• Dividend Yield: 2.67%
• Average Volume (3M): 9.76M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.02
• Revenue Growth: -7.00%
• EPS Growth: 16.26%
• Country: HK
• Employees: 8,900
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 0.23
• Shares Outstanding: 2,782,493,700
• 10 Day Avg. Volume: 10,530,580
• 30 Day Avg. Volume: 9,762,031
• PEG Ratio: 7.55
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.22
• Price Target Upside: 26.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: HK$6.00 ▲(4.90%Upside)

The stock's overall score is bolstered by strong financial performance and attractive valuation, indicating good potential for growth and income. However, neutral technical indicators suggest a lack of current momentum, which may affect short-term performance.

Positive Factors

Earnings

The management has kept the FY25E guidance, indicating confidence in achieving positive group-level sales growth and 30%-40% Saucony sales growth, as well as 10%+ group-level net profit growth.

E-commerce Growth

Xtep brand is expected to see strong e-commerce sales growth in the future due to strategic adjustments and a favorable comparison base from the previous year.

Negative Factors

Consumer Confidence

The ongoing trade war might create some drags on the overall consumer confidence and demand.

Sales Growth

Net profit forecasts for FY25E and FY26E have been revised down due to slower sales growth, partly because of the DTC transformation.

Xtep International Holdings Business Overview & Revenue Model

Company Description

Xtep International Holdings Limited engages in the design, development, manufacture, sale, marketing, and brand management of sports footwear, apparel, and accessories. The company operates in three segments: Mass Market, Athleisure, and Professional Sports. It sells its products primarily under the Xtep brand, as well as K-Swiss, Palladium, Saucony, and Merrell brand names. The company also trades in sportswear products. It offers its products through a distribution network of approximately 6,100 stores covering 31 provinces, autonomous regions, and municipalities in the People's Republic of China and internationally, as well as through online. The company was founded in 1999 and is headquartered in Xiamen, the People's Republic of China.

How the Company Makes Money

Xtep International Holdings generates revenue primarily through the sale of its branded sportswear products. The company's revenue model is centered around a wholesale distribution network, where it supplies its products to a vast network of third-party distributors and retail outlets across China and internationally. Xtep also operates its own retail stores to directly reach consumers. Key revenue streams include footwear, which constitutes a significant portion of sales, followed by apparel and accessories. The company benefits from strategic partnerships and endorsements, leveraging celebrity athletes and events to enhance brand visibility and drive sales. Additionally, Xtep's focus on innovation, product differentiation, and expansion into international markets are critical factors contributing to its earnings growth.

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

Xtep International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.72
• 50DMA: Positive
• 100DMA: Positive
• 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 5.72 is above the 20-day moving average (MA) of 5.50, above the 50-day MA of 5.63, and above the 200-day MA of 5.46, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 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
1368	75 Outperform	$15.02B	10.67	14.95%	2.67%	-7.00%	16.26%
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
GRDZF	―	$310.91M	11.43	10.30%	52.52%	―	―
3709	74 Outperform	HK$5.00B	9.94	10.33%	0.67%	-6.46%	-45.94%
6110	73 Outperform	HK$20.46B	14.46	13.64%	6.18%	-7.87%	-42.79%
1817	54 Neutral	HK$308.75M	9.13	4.29%	―	-4.28%	-25.99%
1223	49 Neutral	HK$2.94B	―	-5.91%	0.52%	0.93%	17.34%

Xtep International Holdings Corporate Events

Xtep International Reports Growth in Retail Sell-Through for 2025

Xtep International Holdings Limited reported its operational update for the second quarter and first half of 2025, highlighting a low single-digit year-on-year growth in retail sell-through for its core Xtep brand and a more than 20% growth for Saucony in the second quarter. For the first half of the year, the Xtep brand saw mid single-digit growth, while Saucony achieved over 30% growth. The announcement is based on unaudited data, and stakeholders are advised to exercise caution.

The most recent analyst rating on (HK:1368) stock is a Buy with a HK$6.70 price target. To see the full list of analyst forecasts on Xtep International Holdings stock, see the HK:1368 Stock Forecast page.

Xtep International Schedules Board Meeting to Review Interim Results

Xtep International Holdings Limited has announced a board meeting scheduled for August 18, 2025, to discuss and approve the interim results for the first half of 2025 and consider the recommendation of an interim dividend. This meeting’s outcomes could impact the company’s financial strategy and shareholder returns, influencing its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1368) stock is a Buy with a HK$6.70 price target. To see the full list of analyst forecasts on Xtep International Holdings stock, see the HK:1368 Stock Forecast page.

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 the 2024 Final Dividend. These adjustments, effective immediately, reflect changes in the conversion price per share, with the 2021 Convertible Bonds adjusted from HK$8.3446 to HK$8.1972, the 2024 Convertible Bonds from HK$5.5 to HK$5.4028, and the 2025 Convertible Bonds from HK$6.325 to HK$6.21. This move is part of the company’s financial strategy to align with market conditions and shareholder interests.

The most recent analyst rating on (HK:1368) stock is a Buy with a HK$6.70 price target. To see the full list of analyst forecasts on Xtep International Holdings stock, see the HK:1368 Stock Forecast page.

Xtep International Ends Guarantee Fee Agreement with K-Swiss USA

Xtep International Holdings Limited announced the termination of a Guarantee Fee Agreement with K-Swiss USA, a former subsidiary, following the release of a financial guarantee by a U.S. bank. This termination, effective from May 30, 2025, will not adversely affect Xtep’s business operations or financial condition, as it was a procedural step following the disposal of KP Global Group.

The most recent analyst rating on (HK:1368) stock is a Buy with a HK$6.70 price target. To see the full list of analyst forecasts on Xtep International Holdings stock, see the HK:1368 Stock Forecast page.

Xtep International Announces Final Dividend with Scrip Option

Xtep International Holdings Limited has announced a final cash dividend of HKD 0.095 per share for the year ending December 31, 2024, with an option for shareholders to receive scrip shares instead. The price for converting cash dividends into scrip shares has been set at HKD 5.543, and the payment is scheduled for June 30, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may impact investor sentiment positively.

The most recent analyst rating on (HK:1368) stock is a Buy with a HK$6.70 price target. To see the full list of analyst forecasts on Xtep International Holdings stock, see the HK:1368 Stock Forecast page.

Xtep International Approves Key Resolutions at AGM

Xtep International Holdings Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on April 28, 2025. Key resolutions included the approval of a final dividend, re-election of directors, re-appointment of auditors, and adoption of new share option and award schemes. These decisions are expected to bolster the company’s governance and operational strategies, potentially enhancing shareholder value and market positioning.