Ubs released a research report stating that the inventory and discount levels of Xtep International (6.3, 0.10, 1.61%) (01368) in the second quarter were similar to those in the first quarter. The inventory level was healthy, and the retail discount remained between 25% and 30%. The group expects that Saucony's revenue will increase by 30 to 40% year-on-year this year, while the revenue of the Xtep brand is expected to record positive growth. The management maintains the target of a year-on-year growth of more than 10% in the group's net profit, and also guides Saucony's operating margin to be at a high single-digit level this year and to improve to over 15% by 2027. The bank raised its target price for Xtep from HK $5.44 to HK $5.78 and maintained a "neutral" rating.