China's sportswear group Xtep plunges as broker cut price after H1 results

Xtep International Holdings

24/08/2022 09:22

** Shares of China's home grown sportswear group Xtep
International Holdings Ltd  1368.HK  drop as much as 16.8% to
HK$10.50, their biggest daily pct decline since August 2008 if
losses hold
    ** Stock hit the lowest since May 30; second biggest pct
decliner in Hang Seng Composite Index  .HSCI  
    ** Fujian-based sportswear group says its H1 profit rises
38% year on year to 590.4 mln yuan with revenue suring 37% to
5.68 bln yuan  urn:newsml:reuters.com:*:nFWN2ZY2K3
    ** Company says it is cautious about the outlook of the
overseas business of its athleisure segment in the second half
of 2022 as rising geopolitical tensions and inflation have
impinged on consumer sentiment in the U.S. and European markets
    ** Daiwa reiterates "buy" on the stock but trim TP to
HK$14.80 from HK$15.80 saying both top- and bottom-line growth
came in per guidance of more than 35% and sees risk from
weaker-than-expected consumer sentiment
    ** HSBC also cuts TP to HK$14.50 from HK$16
    ** Hang Seng consumer goods and services index  .HSCGSI 
drops 1.7%, Hang Seng Composite Index  .HSCI  declines 1.4% and
Hang Seng Index  .HSI  falls 1.2%

 (Reporting by Donny Kwok; Editing by Edmund Blair)
 ((donny.kwok@thomsonreuters.com))