Lyon: Raised target price of Anta to HKD 5.7, maintain a rating of 'outperform'

Golden Ten Data on October 29, Lyon issued a research report pointing out that Xtep International (01368. HK) reported third-quarter results in line with expectations, with retail sales up mid-single-digit year-on-year, inventories and discounts remaining at healthy levels. The company’s quarter-to-date performance has been strong, with both online and physical retail sales recording double-digit year-on-year growth. Excluding the impact of the sale of KPGlobal, the bank expects Xtep’s sales and net profit to rise by 7% year-on-year this year, citing management as expecting a special dividend of HK44.7 cents per share at the end of November. The bank maintained its cautious RISE forecast for this year due to the company’s commitment to maintaining business quality, inventory control and disciplined store expansion, but retail sales of Saucony and Myle are expected to increase by more than 50% year-on-year in anticipation of a significant rise in outdoor brands. The bank slightly upgraded its 2025 net profit forecast by 1%, and the target price rose from HK$5.5 to HK$5.70, maintaining its rating of “outperform”.