SEHK:1368

Stock Analysis Report

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Xtep International Holdings

Market Cap

HK$33.1b

Last Updated

2021/07/23 17:02 UTC

Data Sources

Company Financials +

Executive Summary

Xtep International Holdings Limited engages in the design, development, manufacture, sale, and marketing and brand management of sports footwear, apparel, and accessories. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Xtep International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1368 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: 1368's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

-18.5%

1368

-2.6%

HK Luxury

-1.2%

HK Market


1 Year Return

390.9%

1368

121.4%

HK Luxury

14.4%

HK Market

Return vs Industry: 1368 exceeded the Hong Kong Luxury industry which returned 121.4% over the past year.

Return vs Market: 1368 exceeded the Hong Kong Market which returned 14.4% over the past year.


Shareholder returns

1368IndustryMarket
7 Day-18.5%-2.6%-1.2%
30 Day-12.3%-3.4%-4.3%
90 Day77.6%17.0%-6.4%
1 Year410.8%390.9%124.4%121.4%18.5%14.4%
3 Year169.6%135.7%113.3%97.7%10.0%-2.2%
5 Year279.0%197.7%234.6%182.5%45.8%20.0%

Long-Term Price Volatility Vs. Market

How volatile is Xtep International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Xtep International Holdings undervalued compared to its fair value and its price relative to the market?

47.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1368 (HK$11.88) is trading above our estimate of fair value (HK$4.7)

Significantly Below Fair Value: 1368 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1368 is poor value based on its PE Ratio (47.5x) compared to the Hong Kong Luxury industry average (12.4x).

PE vs Market: 1368 is poor value based on its PE Ratio (47.5x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: 1368 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 1368 is overvalued based on its PB Ratio (3.4x) compared to the HK Luxury industry average (0.8x).


Future Growth

How is Xtep International Holdings forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1368's forecast earnings growth (20.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1368's earnings (20.2% per year) are forecast to grow faster than the Hong Kong market (19% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1368's revenue (14.3% per year) is forecast to grow faster than the Hong Kong market (12.7% per year).

High Growth Revenue: 1368's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1368's Return on Equity is forecast to be low in 3 years time (14.4%).


Past Performance

How has Xtep International Holdings performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1368 has high quality earnings.

Growing Profit Margin: 1368's current net profit margins (6.3%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: 1368's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: 1368's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1368 had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the Luxury industry average (-23.9%).


Return on Equity

High ROE: 1368's Return on Equity (6.9%) is considered low.


Financial Health

How is Xtep International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1368's short term assets (CN¥9.0B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: 1368's short term assets (CN¥9.0B) exceed its long term liabilities (CN¥1.9B).


Debt to Equity History and Analysis

Debt Level: 1368's debt to equity ratio (29.9%) is considered satisfactory.

Reducing Debt: 1368's debt to equity ratio has reduced from 33% to 29.9% over the past 5 years.

Debt Coverage: 1368's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: 1368's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


Dividend

What is Xtep International Holdings's current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1368's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.97%).

High Dividend: 1368's dividend (1.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).


Stability and Growth of Payments

Stable Dividend: 1368's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1368's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.1%), 1368's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1368's dividends in 3 years are forecast to be covered by earnings (62.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.4yrs

Average board tenure


CEO

Shui Po Ding (50 yo)

no data

Tenure

CN¥1,628,000

Compensation

Mr. Shui Po Ding founded XTEP International Holdings Limited in 1999 and serves as its Executive Chairman and Chief Executive Officer. Mr. Ding is the Founder of XTEP (China) Co., Ltd. and serves as its ch...


CEO Compensation Analysis

Compensation vs Market: Shui Po's total compensation ($USD251.60K) is below average for companies of similar size in the Hong Kong market ($USD668.66K).

Compensation vs Earnings: Shui Po's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 1368's board of directors are seasoned and experienced ( 12.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1368 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

Company Information

Xtep International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xtep International Holdings Limited
  • Ticker: 1368
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: HK$33.132b
  • Shares outstanding: 2.59b
  • Website: https://www.xtep.com.hk

Number of Employees


Location

  • Xtep International Holdings Limited
  • Xiamen Xtep Tower
  • No. 89 Jiayi Road
  • Xiamen
  • Fujian Province
  • 361008
  • China

Listings


Biography

Xtep International Holdings Limited engages in the design, development, manufacture, sale, and marketing and brand management of sports footwear, apparel, and accessories. The company sells its products pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 17:02
End of Day Share Price2021/07/23 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.