Yamato believes that after the sale of K-Swiss and Palladium, profit visibility will improve significantly, driving the profit forecast and rating revaluation of TEP International (01368).
The Zhitong Finance App learned that Daiwa released a research report stating that it maintains the “buy” rating of TEP International (01368) and believes that after selling K-Swiss and Palladium, profit visibility will improve significantly, driving up profit forecasts and rating revaluation. The target price was raised from HK$6 to HK$6.7.
The report quoted management as saying that retail sales have increased year-on-year on track since the second quarter, and both discount levels and channel inventory have improved. This year's overall revenue growth guideline of more than 10% remains unchanged, and the revenue of the Saucogne & Merrell brand has increased 30% to 40%. The bank raised STEP's earnings forecast per share by 3% to 5% from this year to 2026 to reflect the restructuring after the sale of K-Swiss and Palladium brands, as well as the financial impact of related transactions.