[ET Net News Agency, 11 December 2017] Credit Suisse cut its target price for Xtep
International (01368) to HK$2.5 from HK$2.8, and maintained its "neutral" rating.
Xtep announced a profit-alert after market close on Friday. The company targets to spend
no more than Rmb150mn on inventory buy-back, which comes as a negative surprise, said the
research house. Overall, the company expects a 25-35% drop on net profit in 2017.
The buy-back will further reduce inventory level by 2-3 weeks, and thus, pave the way to
revenue growth in 2018 onwards. However, Credit Suisse believes it is too early to bottom
fish as earnings visibility is still low.
It lowered its 2017/18 EPS forecasts by 19.8%/11.9% on inventory buy-back this year and
additional store openings expenses in 2018. (KL)
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
