SEHK:1368

Stock Analysis Report

Xtep International Holdings

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.

Risks

  • Xtep International Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

4.1%

SEHK:1368

0.2%

HK Luxury

-0.6%

HK Market


1 Year Return

19.6%

SEHK:1368

-0.2%

HK Luxury

-9.8%

HK Market

1368 outperformed the Luxury industry which returned -1.6% over the past year.

1368 outperformed the Market in Hong Kong which returned -9.8% over the past year.


Share holder returns

1368IndustryMarket
7 Day4.1%0.2%-0.6%
30 Day10.7%-1.8%-8.8%
90 Day19.6%0.6%-8.4%
1 Year24.6%19.6%3.4%-0.2%-6.5%-9.8%
3 Year43.8%24.1%37.6%20.7%12.8%1.6%
5 Year102.3%58.1%27.3%2.2%7.2%-10.6%

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 based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Xtep International Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Xtep International Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Xtep International Holdings is overvalued based on earnings compared to the HK Luxury industry average.

Xtep International Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Xtep International Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Xtep International Holdings is overvalued based on assets compared to the HK Luxury industry average.


Next Steps

Future Growth

How is Xtep International Holdings expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Xtep International Holdings's revenue is expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).

Xtep International Holdings's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

Xtep International Holdings's revenue growth is expected to exceed the Hong Kong market average.

Xtep International Holdings's earnings growth is expected to exceed the Hong Kong market average.

Xtep International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Xtep International Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Xtep International Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Xtep International Holdings's 1-year earnings growth exceeds its 5-year average (60.9% vs -2.3%)

Xtep International Holdings's earnings growth has exceeded the HK Luxury industry average in the past year (60.9% vs 1.2%).


Return on Equity

Xtep International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Xtep International Holdings used its assets more efficiently than the HK Luxury industry average last year based on Return on Assets.


Return on Capital Employed

Xtep International Holdings's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Xtep International Holdings's financial position?


Financial Position Analysis

Xtep International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Xtep International Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Xtep International Holdings's level of debt (36.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (34.2% vs 36.5% today).

Debt is not well covered by operating cash flow (7.9%, less than 20% of total debt).

Xtep International Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.1x debt.


Next Steps

Dividend

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

4.69%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Xtep International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.28%).

Xtep International Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.25%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of Xtep International Holdings's salary, the management and board of directors tenure and is there insider trading?

11.6yrs

Average board tenure


CEO

Shui Ding (48yo)

CN¥957,000

Compensation

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


CEO Compensation Analysis

Shui's remuneration is lower than average for companies of similar size in Hong Kong.

Shui's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

11.6yrs

Average Tenure

52yo

Average Age

The average tenure for the Xtep International Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellHK$16,092,23110 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,382,001
Max PriceHK$4.76
SellHK$85,623,13515 May 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares17,765,238
Max PriceHK$4.82
BuyHK$12,04915 May 19
Highbridge Capital Management, LLC
EntityCompany
Shares2,500
Max PriceHK$4.82
BuyHK$61,170,54513 May 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares11,878,238
Max PriceHK$5.15
SellHK$112,898,49223 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares23,064,500
Max PriceHK$4.89
SellHK$22,561,14317 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,536,000
Max PriceHK$4.97
BuyHK$52,22517 Apr 19
Highbridge Capital Management, LLC
EntityCompany
Shares10,500
Max PriceHK$4.97
SellHK$18,298,64616 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,625,000
Max PriceHK$5.05
BuyHK$23,731,94911 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,542,000
Max PriceHK$5.23
SellHK$3,243,03408 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares592,000
Max PriceHK$5.48
SellHK$547,81008 Apr 19
Highbridge Capital Management, LLC
EntityCompany
Shares100,000
Max PriceHK$5.48
BuyHK$10,94008 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares1,997
Max PriceHK$5.48
BuyHK$13,69508 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares2,500
Max PriceHK$5.48
BuyHK$172,662,40905 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares30,937,001
Max PriceHK$5.58
BuyHK$57,986,51602 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares8,993,499
Max PriceHK$6.45

Ownership Breakdown


Management Team

  • Shui Ding (48yo)

    Founder

    • Compensation: CN¥957.00k
  • Mei Ding (46yo)

    VP & Executive Director

    • Compensation: CN¥484.00k
  • Ming Ding (42yo)

    VP & Executive Director

    • Compensation: CN¥484.00k
  • Lo Yeung (41yo)

    CFO & Company Secretary

    • Tenure: 1.9yrs

Board Members

  • Shui Ding (48yo)

    Founder

    • Tenure: 12.3yrs
    • Compensation: CN¥957.00k
  • Mei Ding (46yo)

    VP & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CN¥484.00k
  • Xian Gao (56yo)

    Independent Non-Executive Director

    • Tenure: 11.6yrs
    • Compensation: CN¥180.00k
  • Ming Ding (42yo)

    VP & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CN¥484.00k
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥556.00k
  • Ming Bao (56yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: CN¥180.00k

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: apparel, accessories and luxury goods
  • Sector: consumer durables
  • Market Cap: HK$13.372b
  • Shares outstanding: 2.49b
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1368SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2008
4QIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2008
XTPE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2008
1368SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2008
1368SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2008
XTEP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

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 Analysis2019/08/17 12:51
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.