20230823-招银国际-特步国际-01368.HK-The_growth_story_is_intact_despite_volatility_11页_1mb

Xtep Holdings Limited (ticker 1368 HK) maintains a BUY recommendation due to strong growth prospects and attractive valuation. Key points include:

• Financial Performance: 1H23 results showed 15% YoY sales increase to RMB 6.5bn and net profit rose 13% to RMB 665mn, aligning with projections. Retail sales growth accelerated in Jul-Aug 2023, supporting a 15-20% sales growth target for the full year. Profit guidance was reiterated, with potential margin improvements.

• Guidance: Management expects 15-20% sales growth and faster profit growth in FY23E. New brands like Saucony drive strong performance, with sales jumping 120% YoY.

• Valuation: Target price increased to HK$11.41 (up 47% YoY), based on 16x FY23E P/E and 0.7x PEG. The company trades at 15.6-12.0x P/E, below the peer average.

• Recommendation: Maintain BUY due to resilient retail trends and value.