In "The Big Banks," China International Capital Corporation lowered the target price for XTEP INT'L to 6.5 yuan and maintained a "Buy" rating

Bank of China International published a research report indicating that XTEP (01368.HK) had stable core brand retail sales performance last season, while Saucony grew by more than 30% year-on-year, showing a divergence between the mass market and the high-end market.

However, the bank stated that XTEP mainly benefited from the strong performance of running products in the industry, thus performing relatively well among domestic peers. The bank mentioned that XTEP is properly nurturing the high-end brand Saucony and expects this brand to continue to be an important driver from 2026 to 2027. Therefore, although the overall sportswear market may still be under pressure in 2026, the company is expected to achieve moderate growth thanks to the Saucony brand.

The bank lowered its earnings per share forecast for XTEP for 2026 to 2027 by 3%, mainly reflecting the continued weakness in the company's core brand revenue forecast; due to intense industry competition, the company is increasing its investment in advertising promotion and research and development, which is expected to lead to an increase in sales, general, and administrative expenses. The bank maintains a "Buy" rating for the company but has lowered the target price to 6.5 yuan