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.

xtep_bocom9_26In 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.

xtep9_26Xtep 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.
 



dynastywinesTianjin 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.

tianjindvpt9_26Tianjin 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

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