Goldman Sachs slightly lowered the target price for POU SHENG INT'L to 0.55 yuan, maintaining a "Buy" rating

Goldman Sachs' research report pointed out that after attending the briefing following the third quarter performance release of POU SHENG INT'L (03813.HK), the results showed that the demand, promotional environment, and competition in China's sportswear industry were as severe as expected, and management indicated that this might continue into next year. However, POU SHENG's online and offline sales during this year's Double Eleven have turned into low single-digit growth year-on-year, and the discount levels the company has undertaken are basically on par with the same period last year, while the brand's rebate and return policies continue to support retailer profits, which has greatly encouraged Goldman Sachs.

Goldman Sachs adjusted POU SHENG's net profit forecast for 2025 to 2027 to a decline of 3% to an increase of 2%, reflecting the third quarter performance this year and the slowdown in revenue recovery in 2026. Based on an average price-to-earnings ratio of 7 times for 2025 to 2026, the 12-month target price was lowered from HKD 0.6 to HKD 0.55, maintaining a "Buy" rating on POU SHENG