GF Securities predicts that the revenue of the main brand of XTEP will increase by 10% in '24, and profit margins are expected to benefit from rebounding discounts and SG&A fee rate optimization.
The Zhitong Finance App learned that GF Securities released a research report stating that it maintains the “buy” rating of TEP International (01368) and expects net profit of 11.7/13.4/1.53 billion yuan in 24-26 years, 15 times PE in 24, with a target price of HK$7.32. Looking ahead to 24 years, considering that the company's inventory has returned to a healthy level and is lightweight, the bank expects the revenue of TEP's main brand to increase by 10%, and profit margins are expected to benefit from rebounding discounts and SG&A fee rate optimization. Furthermore, the company's new brand and the main brand of Special Step complement each other at the consumer base and market level, which is expected to become a new driving force for the company's performance growth.