UBS: Upgrades XTEP INT'L (01368) to "Buy" rating, raises target price to 7.6 Hong Kong dollars.

UBS research report stated that the rating of XTEP INT'L (01368) has been upgraded from "Neutral" to "Buy", with the target price raised from 6.4 Hong Kong dollars to 7.6 Hong Kong dollars. The net profit forecast for 2025 to 2027 has been raised by 1% to 9%, expecting the profit contribution of its brands Saucony and Merrell to increase significantly from 5% in 2024 to 16% in 2027. Additionally, the bank is optimistic about ANTA SPORTS (02020), expecting the profit contribution of vertical brands to increase from 9% in 2024 to 31% in 2027, maintaining a "Buy" rating with a target price of 127 Hong Kong dollars. The stock price of Chinese sports brands has declined by an average of 20% since August this year, reflecting concerns in the market about weak sales in the third quarter, as well as increasing consumer preference for specialized sports categories and vertical brands. The bank estimates that the compound annual growth rate of the outdoor product market from 2025 to 2027 will reach 16%, significantly higher than the overall sportswear market at 5%, believing categories such as tennis and high-end running products will have strong potential.