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

Excellent balance sheet with proven track record and pays a dividend.


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

-0.9%

1368

3.1%

HK Luxury

2.2%

HK Market


1 Year Return

11.1%

1368

21.8%

HK Luxury

-1.3%

HK Market

Return vs Industry: 1368 underperformed the Hong Kong Luxury industry which returned 21.8% over the past year.

Return vs Market: 1368 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1368IndustryMarket
7 Day-0.9%3.1%2.2%
30 Day-0.9%2.7%-2.1%
90 Day-5.0%7.6%-5.6%
1 Year16.6%11.1%26.1%21.8%2.3%-1.3%
3 Year46.9%26.5%44.7%27.4%15.6%3.9%
5 Year66.5%29.1%41.9%14.3%20.1%0.06%

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?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1368 (HK$4.39) is trading below our estimate of fair value (HK$8.13)

Significantly Undervalued: 1368 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1368 is poor value based on its PE Ratio (11.9x) compared to the Luxury industry average (9.5x).

PE vs Market: 1368 is poor value based on its PE Ratio (11.9x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1368 is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: 1368 is overvalued based on its PB Ratio (1.3x) compared to the HK Luxury industry average (0.9x).


Next Steps

Future Growth

How is Xtep International Holdings expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1368's forecast earnings growth (19.5% per year) is above the savings rate (2%).

Earnings vs Market: 1368's earnings (19.5% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1368's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1368's revenue (16.8% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1368's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1368's Return on Equity is forecast to be low in 3 years time (15.3%).


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

Earnings Trend: 1368's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: 1368's earnings growth over the past year (57.4%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: 1368 earnings growth over the past year (57.4%) exceeded the Luxury industry -4.9%.


Return on Equity

High ROE: 1368's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: 1368 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 1368's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Xtep International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1368's short term assets (HK$9.2B) exceeds its short term liabilities (HK$3.5B)

Long Term Liabilities: 1368's short term assets (HK$9.2B) exceeds its long term liabilities (HK$320.7M)


Debt to Equity History and Analysis

Debt Level: 1368's debt to equity ratio (25.9%) is considered satisfactory

Reducing Debt: 1368's debt to equity ratio has reduced from 37.9% to 25.9% over the past 5 years.

Debt Coverage: 1368's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: 1368 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1368 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1368's debt is covered by short term assets (assets are 5.179700x debt).


Next Steps

Dividend

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

5.68%

Expected Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.3%markettop25%6.3%industryaverage6.2%forecastin3Years5.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1368's dividend (4.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1368's dividend (4.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), 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 (58.2% payout ratio).


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?

11.8yrs

Average board tenure


CEO

Shui Ding (48yo)

0yrs

Tenure

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

Compensation vs. Market: Shui's total compensation ($USD135.02K) is about average for companies of similar size in the Hong Kong market ($USD492.11K).

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


Board Age and Tenure

11.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 1368's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCN¥3,782,12728 Aug 19
Shui Ding
EntityIndividual
Role
Chief Executive Officer
Founder
Shares831,000
Max PriceCN¥4.55
BuyCN¥9,355,60126 Aug 19
Shui Ding
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max PriceCN¥4.68
BuyCN¥5,633,18123 Aug 19
Shui Ding
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,169,000
Max PriceCN¥4.82
BuyCN¥9,680,39823 Aug 19
Shui Ding
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max PriceCN¥4.84
SellCN¥16,092,23110 Jul 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,382,001
Max PriceCN¥4.76
SellCN¥85,623,13515 May 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares17,765,238
Max PriceCN¥4.82
BuyCN¥12,04915 May 19
Highbridge Capital Management, LLC
EntityCompany
Shares2,500
Max PriceCN¥4.82
BuyCN¥61,170,54513 May 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares11,878,238
Max PriceCN¥5.15
SellCN¥112,898,49223 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares23,064,500
Max PriceCN¥4.89
SellCN¥22,561,14317 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,536,000
Max PriceCN¥4.97
BuyCN¥52,22517 Apr 19
Highbridge Capital Management, LLC
EntityCompany
Shares10,500
Max PriceCN¥4.97
SellCN¥18,298,64616 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares3,625,000
Max PriceCN¥5.05
BuyCN¥23,731,94911 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares4,542,000
Max PriceCN¥5.23
SellCN¥3,243,03408 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares592,000
Max PriceCN¥5.48
SellCN¥547,81008 Apr 19
Highbridge Capital Management, LLC
EntityCompany
Shares100,000
Max PriceCN¥5.48
BuyCN¥10,94008 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares1,997
Max PriceCN¥5.48
BuyCN¥13,69508 Apr 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares2,500
Max PriceCN¥5.48
BuyCN¥172,662,40905 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares30,937,001
Max PriceCN¥5.58
BuyCN¥57,986,51602 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares8,993,499
Max PriceCN¥6.45

Ownership Breakdown


Management Team

  • Shui Ding (48yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥957.00k
  • Mei Ding (46yo)

    VP & Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥484.00k
  • Ming Ding (42yo)

    VP & Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥484.00k
  • Lo Yeung (41yo)

    CFO & Company Secretary

    • Tenure: 2.1yrs

Board Members

  • Shui Ding (48yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CN¥957.00k
  • Mei Ding (46yo)

    VP & Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥484.00k
  • Xian Gao (56yo)

    Independent Non-Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥180.00k
  • Ming Ding (42yo)

    VP & Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥484.00k
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: CN¥556.00k
  • Ming Bao (56yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • 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$10.952b
  • Shares outstanding: 2.49b
  • 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

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
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 Analysis2019/10/13 12:55
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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