CICC International: Lower target price of Xtep International to HK$4.3. First half year sales were below expectations.

China International Capital Corporation (CICC) released a research report stating that the second quarter operating data of Xtep International was weaker than expected. The core Xtep brand and Saucony both recorded mid-single-digit year-on-year declines and low single-digit year-on-year increases, respectively, falling short of the bank's expectations. CICC has lowered the earnings forecast for Xtep for the years 2026 to 2028 by 2% to 3% to reflect the weak retail sales and the deleveraging impact on physical retail operations in the second quarter. The target price has been lowered from 5 Hong Kong dollars to 4.3 Hong Kong dollars, with a "Buy" rating.