<Research>CLSA: CN Sports Brands Grow Faster Than Apparel Sector; Top Pick ANTA SPORTS (02020.HK) w/ TP Lifted to $116
Chinese Sportswear Market Growth: CLSA's report highlights that Chinese sportswear brands, particularly ANTA SPORTS, are gaining market share with a 4.2% YoY sales growth in 1H25, outperforming the overall apparel industry but still trailing behind the broader consumer goods sector.
Stock Ratings and Forecasts: CLSA has raised its target price for ANTA SPORTS to $116 and maintains an Outperform rating, while keeping LI NING at Hold and adjusting XTEP INT'L's forecasts downwards but increasing its target price to $6.3.
Trade with 70% Backtested Accuracy
Analyst Views on 01368
About the author
XTEP INT'L to Issue HKD500M Convertible Bonds for Refinancing and Bond Repurchase Due This Year
Bond Repurchase and Issuance: XTEP INT'L announced a proposal to repurchase HKD500 million of its 1.5% convertible bonds due in 2026 and issue HKD500 million in zero-coupon convertible bonds due in 2029.
Conversion Details: The outstanding 2025 convertible bonds can be converted into approximately 83.1947 million shares at an adjusted conversion price of HKD6.01, while the new bonds have an initial conversion price of HKD6.37, allowing conversion into about 78.4929 million new shares.
Commitments from Bondholders: The company has received commitments from bondholders to sell the entire HKD500 million of the 2025 convertible bonds, indicating strong support for the repurchase.
Use of Proceeds: The net proceeds of around HKD492 million from the new bond issuance are intended for refinancing the outstanding 2025 convertible bonds.
CICC Reports Strong 4Q25 Results for XTEP INT'L (01368.HK), Maintains Outperform Rating
Company Performance: XTEP International reported solid 4Q25 results, with its main brand's retail sell-through remaining flat year-on-year and retail discounts between 25-30%. The Saucony brand, however, saw over 30% growth in retail sell-through year-on-year.
Inventory and Forecasts: As of December, the channel inventory turnover was 4.5 months. CICC maintained its EPS forecasts for 2025 and 2026 at RMB0.49 and RMB0.55, respectively, and introduced a new forecast of RMB0.61 for 2027.
Stock Rating and Target Price: CICC kept its rating for XTEP at Outperform, with the current share price reflecting a projected 2026 PE ratio of 8x. However, due to a downward shift in industry valuations, the target price was reduced by 11% to $6.47, corresponding to an estimated 2026 PE ratio of 11x.
Market Activity: The stock experienced short selling of $11.05 million, with a short selling ratio of 14.392%. Additionally, JPMorgan maintained an Underweight rating on LI NING, indicating ongoing challenges in the market.
JPM Maintains Underweight Rating on LI NING; Obstacles Persist This Year
LI NING's Recovery Efforts: JPMorgan recognizes LI NING's management efforts to revitalize the brand, although the company is expected to face a low earnings base with declines projected from 2023 to 2025.
Earnings Forecast: A modest earnings increase of only 2% is anticipated for LI NING in 2026, which is significantly lower than the expected over 10% increase for competitors ANTA SPORTS and XTEP INT'L.
Broker Ratings: UOB Kay Hian has maintained a Hold rating on LI NING, raising its target price to HKD 20.2, while keeping the target price at HKD 14.6 and an Underweight rating.
Short Selling Data: As of January 19, 2026, LI NING has a short selling ratio of 21.243% with $128.12M short sold, compared to lower ratios for ANTA SPORTS and XTEP INT'L.
<Study>CLSA Consumer Ratings and Target Prices (Table)
Stock Performance Overview: Several companies, including Samsonite and Anta Sports, showed mixed stock performance with varying short selling ratios, indicating market sentiment and trading activity.
Recommendations and Target Prices: Analysts have given "Outperform" ratings to multiple companies, including Pop Mart and Shenzhou International, with target price adjustments reflecting expected performance changes.
Short Selling Insights: Notable short selling activity was observed in companies like Pop Mart and Li Ning, with ratios indicating significant market speculation against these stocks.
Related News Highlights: Chow Tai Fook reported a slight increase in interim net profit and raised its full-year profit margin guidance, reflecting positive management outlook amidst market fluctuations.
Galaxy Securities Suggests POP MART as a Top Pick in Trendy Toy Market, Anticipates Continued National Subsidies from CN Next Year to Stimulate Consumption
Implementation Plan for Consumer Goods: Six Chinese ministries have launched a plan to enhance the alignment of supply and demand in consumer goods, aiming to boost consumption amid pressures from insufficient purchasing power.
Government Subsidies: The Chinese government is allocating significant funds for trade-ins of old consumer goods, with RMB150 billion in 2024 and RMB300 billion in 2025, to stimulate short-term demand through national subsidies.
Retail Sales Growth: In October 2025, total retail sales of consumer goods increased by 2.9% year-on-year, although the growth rate showed a slight decline compared to the previous month, indicating ongoing challenges in the consumer market.
Stock Recommendations: China Galaxy Securities has recommended various stocks across sectors, including GUMING and DAMAI ENT in social services, ANTA SPORTS and XTEP INT'L in apparel, and TCL ELECTRONICS in technology, reflecting a focus on the new consumer track.
G Sachs Reduces XTEP INT'L Target Price to HKD6.8, Maintains Buy Rating
Operating Results: XTEP INT'L reported its 3Q25 results, showing expected YoY growth in retail sales for its core brand Xtep, while Saucony's growth exceeded 20% but fell short of expectations.
Guidance and Target Price: The company maintained its full-year guidance with positive growth projections, but Goldman Sachs lowered its target price from HKD7.1 to HKD6.8 due to weak industry demand, while still rating the stock as Buy.
XTEP INT'L to Issue HKD500M Convertible Bonds for Refinancing and Bond Repurchase Due This Year
Bond Repurchase and Issuance: XTEP INT'L announced a proposal to repurchase HKD500 million of its 1.5% convertible bonds due in 2026 and issue HKD500 million in zero-coupon convertible bonds due in 2029.
Conversion Details: The outstanding 2025 convertible bonds can be converted into approximately 83.1947 million shares at an adjusted conversion price of HKD6.01, while the new bonds have an initial conversion price of HKD6.37, allowing conversion into about 78.4929 million new shares.
Commitments from Bondholders: The company has received commitments from bondholders to sell the entire HKD500 million of the 2025 convertible bonds, indicating strong support for the repurchase.
Use of Proceeds: The net proceeds of around HKD492 million from the new bond issuance are intended for refinancing the outstanding 2025 convertible bonds.
CICC Reports Strong 4Q25 Results for XTEP INT'L (01368.HK), Maintains Outperform Rating
Company Performance: XTEP International reported solid 4Q25 results, with its main brand's retail sell-through remaining flat year-on-year and retail discounts between 25-30%. The Saucony brand, however, saw over 30% growth in retail sell-through year-on-year.
Inventory and Forecasts: As of December, the channel inventory turnover was 4.5 months. CICC maintained its EPS forecasts for 2025 and 2026 at RMB0.49 and RMB0.55, respectively, and introduced a new forecast of RMB0.61 for 2027.
Stock Rating and Target Price: CICC kept its rating for XTEP at Outperform, with the current share price reflecting a projected 2026 PE ratio of 8x. However, due to a downward shift in industry valuations, the target price was reduced by 11% to $6.47, corresponding to an estimated 2026 PE ratio of 11x.
Market Activity: The stock experienced short selling of $11.05 million, with a short selling ratio of 14.392%. Additionally, JPMorgan maintained an Underweight rating on LI NING, indicating ongoing challenges in the market.
JPM Maintains Underweight Rating on LI NING; Obstacles Persist This Year
LI NING's Recovery Efforts: JPMorgan recognizes LI NING's management efforts to revitalize the brand, although the company is expected to face a low earnings base with declines projected from 2023 to 2025.
Earnings Forecast: A modest earnings increase of only 2% is anticipated for LI NING in 2026, which is significantly lower than the expected over 10% increase for competitors ANTA SPORTS and XTEP INT'L.
Broker Ratings: UOB Kay Hian has maintained a Hold rating on LI NING, raising its target price to HKD 20.2, while keeping the target price at HKD 14.6 and an Underweight rating.
Short Selling Data: As of January 19, 2026, LI NING has a short selling ratio of 21.243% with $128.12M short sold, compared to lower ratios for ANTA SPORTS and XTEP INT'L.
<Study>CLSA Consumer Ratings and Target Prices (Table)
Stock Performance Overview: Several companies, including Samsonite and Anta Sports, showed mixed stock performance with varying short selling ratios, indicating market sentiment and trading activity.
Recommendations and Target Prices: Analysts have given "Outperform" ratings to multiple companies, including Pop Mart and Shenzhou International, with target price adjustments reflecting expected performance changes.
Short Selling Insights: Notable short selling activity was observed in companies like Pop Mart and Li Ning, with ratios indicating significant market speculation against these stocks.
Related News Highlights: Chow Tai Fook reported a slight increase in interim net profit and raised its full-year profit margin guidance, reflecting positive management outlook amidst market fluctuations.
Galaxy Securities Suggests POP MART as a Top Pick in Trendy Toy Market, Anticipates Continued National Subsidies from CN Next Year to Stimulate Consumption
Implementation Plan for Consumer Goods: Six Chinese ministries have launched a plan to enhance the alignment of supply and demand in consumer goods, aiming to boost consumption amid pressures from insufficient purchasing power.
Government Subsidies: The Chinese government is allocating significant funds for trade-ins of old consumer goods, with RMB150 billion in 2024 and RMB300 billion in 2025, to stimulate short-term demand through national subsidies.
Retail Sales Growth: In October 2025, total retail sales of consumer goods increased by 2.9% year-on-year, although the growth rate showed a slight decline compared to the previous month, indicating ongoing challenges in the consumer market.
Stock Recommendations: China Galaxy Securities has recommended various stocks across sectors, including GUMING and DAMAI ENT in social services, ANTA SPORTS and XTEP INT'L in apparel, and TCL ELECTRONICS in technology, reflecting a focus on the new consumer track.
G Sachs Reduces XTEP INT'L Target Price to HKD6.8, Maintains Buy Rating
Operating Results: XTEP INT'L reported its 3Q25 results, showing expected YoY growth in retail sales for its core brand Xtep, while Saucony's growth exceeded 20% but fell short of expectations.
Guidance and Target Price: The company maintained its full-year guidance with positive growth projections, but Goldman Sachs lowered its target price from HKD7.1 to HKD6.8 due to weak industry demand, while still rating the stock as Buy.
