Bocom reiterates ‘Neutral’ call on XTEP
Bocom International is reiterating its “Neutral” recommendation on fashion sportswear play Xtep International (HK: 1368) following a check of over a dozen brands in Shanghai in late September.
In terms of target prices, Bocom is more bullish on Xtep than it is on major PRC sportswear rival Anta. Source: Bocom
“Based on our observation, the promotional activities remained aggressive, with sales discounts ranging 15%-50% for new arrivals and 30%-70% for off-season products.
“Despite that, traffic flow remained lackluster, an unfavorable start ahead of the Golden Week holiday next week, in our view,” Bocom said.
Xtep recently 3.63 hkdThe research house said that higher-end brands were struggling more than more mass-market plays like Xtep in terms of demand slowdowns.
“Higher-end consumption has been more affected in the current round of consumer cautiousness.”
Bocom’s target price on the fashion sportswear brand with a strong promotional presence of marathon races remains unchanged at 3.80 hkd.
Tianjin Development has a 45% strategic stake in Dynasty Fine Wines Group Ltd, a leading PRC vintner. Photo: DynastyGuoco keeps ‘Buy’ call on TIANJIN DEVELOPMENT
Guoco Capital is maintaining its “Buy” recommendation on Tianjin Development (HK: 882), a manufacturer and seller of consumer products such as wines, with a target price of 5.43 hkd.
Tianjin Development also has infrastructure operations including container and cargo handling, stevedoring and toll road construction and services.
“The counter rose 3.4% in one recent trading day with exceptional turnover.
“Its trend relative to the benchmark Hang Seng Composite Index also broke through the downtrend since early July,” Guoco said.
Tianjin Dvpt recently 4.69 hkdThe research house has a cut loss of 4.33 hkd on Tianjin Development.
The consensus 2013 PE is 10.95 times and the consensus target price is 6.60 hkd.
Tianjin Development has a 45% strategic stake in Dynasty Fine Wines Group Ltd, a leading PRC vintner.
See also:
XTEP Steps Up Sports Promos