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Xtep International Holdings Limited (HK:1368)
:1368
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Xtep International Holdings (1368) AI Stock Analysis

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HK:1368

Xtep International Holdings

(1368)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
HK$4.00
▲(9.29% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial fundamentals (improving leverage and healthy returns), supported by attractive valuation (low P/E and high dividend yield). This is tempered by weak technicals, with price trading below key moving averages and negative MACD, indicating the market trend remains unfavorable despite near-oversold signals.
Positive Factors
Improving leverage
Debt-to-equity falling to roughly 0.27 reflects a structurally stronger balance sheet and rising equity. This improves financial flexibility, lowers solvency risk, and supports sustained investment in product, retail expansion and marketing without overreliance on costly external financing.
Negative Factors
2025 margin compression
Observed margin compression in 2025 versus 2024 signals pressure on pricing, cost or channel mix. If sustained, narrower gross and operating margins will reduce reinvestment capacity and returns, increasing sensitivity to input inflation and competitive discounting over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
Debt-to-equity falling to roughly 0.27 reflects a structurally stronger balance sheet and rising equity. This improves financial flexibility, lowers solvency risk, and supports sustained investment in product, retail expansion and marketing without overreliance on costly external financing.
Read all positive factors

Xtep International Holdings (1368) vs. iShares MSCI Hong Kong ETF (EWH)

Xtep International Holdings Business Overview & Revenue Model

Company Description
Xtep International Holdings Limited specializes in the full scope of athletic product management, from designing and developing sports footwear, apparel, and accessories to their manufacturing, distribution, marketing, and brand stewardship. The c...
How the Company Makes Money
Xtep makes money primarily by selling sports footwear, apparel and accessories under its brand portfolio. Revenue is generated through (1) wholesale/distribution sales, where the company sells products to distributors and other channel partners wh...

Xtep International Holdings Financial Statement Overview

Summary
Fundamentals are solid overall: strong multi-year revenue growth and stable gross profitability, improving leverage (debt-to-equity declining to ~0.27 in 2025), and healthy ROE (~11%–14%). Offsetting factors are 2025 margin compression versus 2024 and weaker 2025 operating/free cash flow versus 2024, which reduces near-term earnings and cash-flow visibility.
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue14.11B14.15B13.58B14.35B12.93B10.01B
Gross Profit6.14B6.06B5.87B6.05B5.29B4.18B
EBITDA1.79B2.14B2.09B1.93B1.72B1.55B
Net Income1.28B1.37B1.24B1.03B921.69M908.34M
Balance Sheet
Total Assets17.71B16.91B15.97B17.33B16.49B14.62B
Cash, Cash Equivalents and Short-Term Investments3.63B4.14B2.98B3.29B3.91B3.93B
Total Debt2.35B2.76B3.10B3.80B3.47B2.74B
Total Liabilities6.88B6.78B7.27B8.40B8.19B6.63B
Stockholders Equity10.80B10.10B8.70B8.86B8.24B7.93B
Cash Flow
Free Cash Flow1.19B708.12M909.58M759.21M193.03M33.96M
Operating Cash Flow1.43B965.40M1.23B1.25B571.83M701.35M
Investing Cash Flow-443.34M-415.38M651.40M-915.03M-872.60M-328.63M
Financing Cash Flow-988.91M-437.95M-2.20B-461.44M-236.10M96.26M

Xtep International Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.66
Price Trends
50DMA
3.49
Negative
100DMA
3.75
Negative
200DMA
4.30
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
48.97
Neutral
STOCH
24.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1368, the sentiment is Negative. The current price of 3.66 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.49, and below the 200-day MA of 4.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1368.

Xtep International Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$1.10T38.8020.52%0.85%13.04%28.02%
68
Neutral
HK$9.48B6.3212.21%7.93%10.47%-8.83%
67
Neutral
HK$2.25B11.0610.15%9.96%-2.94%-6.03%
63
Neutral
HK$6.85B4.5714.22%23.17%-3.55%-0.62%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
52
Neutral
HK$156.74M-4.19-9.78%10.58%-9.42%-58.91%
48
Neutral
HK$144.37M-1.32-104.84%0.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1368
Xtep International Holdings
3.37
-2.72
-44.64%
HK:0330
Esprit Holdings
0.51
-1.02
-66.78%
HK:0709
Giordano International
1.39
-0.12
-7.82%
HK:0375
YGM Trading Limited
0.95
-0.10
-9.52%
HK:6110
Topsports International Holdings Limited
1.04
-1.61
-60.80%
HK:6288
Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh
33.46
8.40
33.52%

Xtep International Holdings Corporate Events

Xtep Board Sets August Meeting to Approve Interim Results and Consider Dividend
Jul 20, 2026
Xtep International Holdings has announced that its board of directors will convene on 25 August 2026 to review and approve the group’s interim financial results for the six months ended 30 June 2026. The board will also consider whether to r...
Xtep Signals Core Brand Softness as Saucony Delivers Double-Digit Growth in China
Jul 17, 2026
Xtep International Holdings has reported an operational update for the second quarter and first half of 2026, showing a mid single-digit year-on-year decline in retail sell-through for its core Xtep brand in the second quarter and a low single-dig...
Xtep Lowers Convertible Bond Conversion Prices After 2025 Dividend
Jun 30, 2026
Xtep International Holdings has announced adjustments to the conversion prices of its 2021, 2024 and 2026 convertible bonds following the declaration and payment of a final dividend for the 2025 financial year. The conversion prices have been redu...
Xtep Sets Final 2025 Dividend and Scrip Conversion Terms
May 22, 2026
Xtep International Holdings has updated details of its final dividend for the year ended 31 December 2025, confirming a payout of HKD 0.095 per share with a scrip dividend option. Shareholders can choose to receive new shares in lieu of cash at a ...
Xtep Shareholders Approve All AGM Resolutions, Endorsing Dividend and Capital Mandates
May 8, 2026
Xtep International Holdings said shareholders approved all resolutions at its 8 May 2026 annual general meeting, including the receipt of its 2025 audited financial statements and the declaration of a final dividend of HK9.5 cents per share with a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026