Xtep International: Weak 2Q; Saucony’s premiumization on track; maintain OW

研报英文原文证据摘录

Xtep International: Weak 2Q; Saucony’s premiumization on track; maintain OW

Asia Pacific Equity Research

19 July 2026

Overweight

Xtep International 1368.HK, 1368 HK

Price (17 Jul 26): HK$3.69

Weak 2Q; Saucony’s premiumization on track;

▼ Price Target (Dec-26): HK$6.00

maintain OW Prior (Dec-26): HK$6.30

Xtep reported 2Q26 operational updates with core Xtep retail sell-through China

down MSD (vs. core Anta up LSD and Li Ning down LSD) and Saucony Consumer

up LSD. This was at the lower end of market expectation, due to a decline AC Qian Yao

in core Xtep traffic amid lukewarm macro and unfavorable weather, (86-21) 6106 6277

especially for street stores, and Saucony’s strict discount control, qian.q.yao@jpmorgan.com

especially for online. The 2026 net margin guidance was maintained at SAC Registration Number: S1730521050001

HSD, while topline guidance (group +MSD with core Xtep positive Carson Fan

growth and Saucony +20-30%) was under review. Despite the short-term (86-21) 6106-6294

headwinds (including lingering uncertainties in early July), we are rong.fan@jpmorgan.com

encouraged by Saucony’s on-track premiumization (channel upgrades, SAC Registration Number: S1730522070002

brand equity elevation, product offering enhancement) and core Xtep’s J.P. Morgan Securities (China) Company Limited

further mindshare gains in the running category (driven by the hero Key Changes (FYE Dec)

products). We cut our ’26-28E earnings by 3-5% to factor in the sluggish Prev Cur Δ

retail environment. Our revised DCF-based Dec-26 PT of HK$6.0 implies Adj. EPS - 27E (Rmb) 0.52 0.50 -4.4%

11x 12-month forward P/E. We are positive on Xtep’s improving earnings

growth outlook, because of a higher earnings contribution from the fast- Style Exposure