China's Xtep hits 5-week high on strong results; brokers lift TP

Xtep International Holdings

24/08/2021 04:46

** Shares of Chinese sportswear maker Xtep International
Holdings Ltd  1368.HK  rise 9.4% to HK$14, their highest since
July 20 
    ** Stock, which is rising for a second consecutive session,
set for the biggest daily percentage gain since Aug 4
    ** The Fujian-based company said its H1 profit jumped 72% to
427 mln yuan ($65.9 mln) from a year-ago period, with revenue
rising 12.4% to 4.1 bln yuan  urn:newsml:reuters.com:*:nFWN2PS0F1
    ** Daiwa reiterates "buy" rating on the stock and lifts TP
to HK$16.80 from HK$16.50 as brokerage expects stronger H2
revenue outlook  
    ** CMB International Capital maintains "buy" and raises TP
to HK$18.73 from HK$18.17, saying it revises up earnings
estimates to factor in the better-than-expected sales growth,
gross profit margin, and operating leverage
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
jumps 3.6% and the Hang Seng consumer goods and services index
 .HSCGSI  rises 2.1%
    ** The Hang Seng China Enterprises Index  .HSCE  up 2.2% and
the benchmark index  .HSI  climbs 1.7%
    ** As of last close, stock up 230.8% this year
    ($1 = 6.4826 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))