06110 TOPSPORTS
- 2.600
- -0.070-2.62%
TOPSPORTS News
CICC in "Dah Sing": MSCI China Adjustment, Focus on Positive Impact on Ctrip (09961.HK), Nio Inc (09866.HK), and Alibaba (09988.HK)
CICC's report pointed out that MSCI's adjustment to China focuses on the potential positive impact on Ctrip-S (09961.HK), Nio-SW (09866.HK), and Alibaba-W (09988.HK); and the potential negative impact on Meituan (06110.HK), GAC (02238.HK), and iQIYI (IQ.US). In terms of the absolute change in weights, CICC calculated that due to this adjustment, Alibaba, Ctrip Group, Kuaishou-W (01024.HK), Nio, and Tianfeng Securities (601162.SH) rank high in weight increases.
Major MSCI adjustment! Brokerage stocks are most favored, 20 companies are being removed.
On November 7th, Beijing time, the international index compiler MSCI announced the results of the November stock index review. Among them, 4 Chinese stocks were newly included in the MSCI China Index, while 20 individual stocks were removed. All changes will take effect after the market closes on November 25, 2024.
Review of the MSCI China Index, Guangzhou Auto (02238.HK) and Topsports (06110.HK) are removed.
MSCI has announced the latest review results of the MSCI Chinese Index constituents, including the addition of 4 stocks and the removal of 20 stocks. The changes will take effect after the market closes on the 25th of this month. The 4 stocks added to the index are all A shares, including First Capital Securities (603116.SH), Huqin Technology (603296.SH), Longxin Semiconductor (688047.SH), and Tianfeng Securities (601162.SH). Among the 20 stocks removed from the index are 2 H shares and 1 American Depositary Receipt, including Guangzhou Automobile (02238.HK), Topsports (06110.HK), and IQIYI (IQIYI).
Topsports (6110.HK): FY25H1 is expected to reach the bottom of performance, maintaining ample cash and high dividends.
FY25H1 sales are under pressure, mainly due to the year-on-year decline in offline customer traffic. In FY25H1 (March-August 2024), the company recorded revenue of 13.05 billion yuan, a 7.9% year-on-year decrease, mainly due to weak demand and a decline in same-store customer traffic.
Hong Kong stock market abnormal movement | Topsports (06110) fell more than 4% now, with a decline in revenue and net income in the first half of the fiscal year. Institutions state that the company's customer traffic pressure is still ongoing.
Topsports (06110) is currently down more than 4%, as of the time of writing, it is down 4.06%, trading at 2.6 Hong Kong dollars, with a turnover of 29.1086 million Hong Kong dollars.
Bocom Intl: Downgraded topsports rating to 'Neutral', target price lowered to HKD 3.06.
Bocom Intl released a research report stating that considering the continued pressure on current customer traffic, they have revised down the financial estimates for Topsports (06110). The target price has been lowered to HK$3.06, with a potential upside of 14.1%, based on a PE ratio of 11 times for the 2025-26 fiscal year. The rating has been downgraded from 'buy' to 'neutral'. The report points out that due to the pressure on customer traffic this year, revenue in the first half of the fiscal year fell by 7.9% year-on-year. The gross margin decreased by 3.6 percentage points year-on-year, mainly due to deeper discount rates and an increased proportion of wholesale channels with lower gross margins. The net margin decreased by 2.7 percentage points year-on-year to 6.7%. The mid-term dividend payout ratio reached 99.
[Brokerage Focus] Bocom Intl downgrades Topsports (06110) rating to Neutral, indicating that the current pressure on customer traffic continues.
Golden Finance News | Bocom Intl issued research reports pointing out that Topsports (06110) saw a decline in revenue and net income in the first half of the 2025 fiscal year. Affected by the pressure on customer traffic this year, the revenue decreased by 7.9% year-on-year. The gross margin fell by 3.6 percentage points year-on-year, mainly due to deeper discount rates and an increase in the proportion of wholesale channels with lower gross margins. The net income margin decreased by 2.7 percentage points year-on-year to 6.7%. The interim dividend payout ratio reached 99.4%. The number of stores decreased by more than 300 in the first half of the fiscal year. As of the end of the first half of the 2025 fiscal year, Topsports operated a total of 5813 stores, with the total sales area of directly operated stores decreasing by 1.9% compared to the previous year.
Tencent International (6110.HK): Both revenue and profit declined in the first half of the fiscal year, maintaining a high dividend yield; revised to neutral.
In the first half of the 2025 fiscal year, both revenue and net income declined; maintaining a high dividend payout ratio. Since the beginning of the year, affected by the pressure on customer traffic, the company's revenue decreased by 7.9% year-on-year to 13.05 billion yuan (RMB, the same below), slightly below market expectations. Gross margin
[Brokerage Focus] Zheshang Securities maintains a 'buy' rating on Topsports (06110), indicating that there is still retail environment pressure in the second half of the fiscal year.
Jingu Finance News | Zheshang Securities released research reports indicating that due to changes in the consumer environment, Topsports (06110) experienced a mid-single-digit and a 10%-20% decline in total sales amount for retail and wholesale business in the two quarters from 3/1 to 5/31 and 6/1 to 8/30 in 2024, resulting in a 7.9% year-on-year decrease in the company's revenue for the first half of the fiscal year to 13.06 billion yuan, with sales revenue of 12.96 billion yuan, a year-on-year decrease of -7.9%. Affiliate revenue from esports also decreased by 15.7% and 0.5% year-on-year. The company continues to enhance store experience in direct operations, with new brand performance slightly better than block orders.
A quick overview: Hong Kong stock market bullish and bearish stock list for October is out! Good performance, china-affiliated brokerage stocks continue to party, haitong sec soars 79%; positive restructuring news boosts chongqing iron with a 45% surge.
The Hang Seng Tech Index has experienced a significant drop this month, with a cumulative decline of over 5%; the Hang Seng Index and the A-share Index have fallen by 3.86% and 3.27% respectively.
Topsports (06110): Retail under pressure, cash flow remains stable
Topsports disclosed its FY25 interim report, and revenue was under pressure as scheduled: affected by changes in the consumer environment, the company's total sales amount for retail and wholesale business in two quarters from 3/1/2024-5/31 and 6/1-8/30 compared year-on-year.
Topsports (6110.HK): Strong cost control ability, stable operation quality.
Event Description: Topsports released the FY2025H1 performance announcement, with revenue down 8% year-on-year to 13.1 billion yuan, net income attributable to mother down 35% year-on-year to 0.87 billion yuan, and the company's interim dividend payout ratio at 99.4%. Event commentary: Terminal discounts are under pressure.
haitong int'l: Operating stable or performing well in selected sports brands, paying attention to strong Alpha on the manufacturing side.
Since July, the retail year-on-year growth rate of the sports brand has shown a monthly improvement trend; on the manufacturing side, overseas exports in Q3 of 24 accelerated overall compared to Q2.
TopSports (06110.HK): Performance under pressure, high dividend policy continues
The company disclosed the FY25H1 financial report, achieving revenue of 13.055 billion, a 7.9% year-on-year decrease, achieving net income attributable to equity holders of 0.87 billion, a 34.6% year-on-year decrease, lower than market expectations. The mid-term planned cash dividend amount is 8.
[Hong Kong Stock Connect] Topsports (06110) fell by 4.18%, Citi cut the target price by 10.7%, expecting poor prospects in the second half of the year.
Kingfisher Financial News | Topsports (06110) stock price declined, as of the deadline, fell by 4.18% to HKD 2.75, with a turnover of 45.28 million Hong Kong dollars. On the news front, CMB International issued a research report pointing out that Topsports' performance in the first half of the 25th fiscal year met expectations. Sales decreased by 8% year-on-year to RMB 13.1 billion, net income decreased by 35% year-on-year to RMB 0.874 billion, consistent with the previous profit warning. In addition, the gross margin decreased to 41.1% (a decrease of 3.6 percentage points year-on-year), far below the bank's expectations, but offset by cost savings from more store closures. The bank downgraded Topsports' rating to "hold".
Hong Kong stock market anomaly | Topsports (06110) fell more than 4%, with the company's performance under pressure in the first half of the fiscal year. Institutions point out that its performance turnaround still needs to wait.
Topsports (06110) fell more than 4%, as of the deadline, fell by 4.18%, to 2.75 Hong Kong dollars, with a turnover of 44.9762 million Hong Kong dollars.
Cautious Hold Rating for Topsports International: Challenges in Offline Sales and Nike's Turnaround
CMB International Downgrades Topsports International to Hold From Buy; Price Target Is HK$2.82
Topsports (06110.HK): Profit under pressure due to FY2025H1 discounts and negative operational leverage, excellent cost control capability.
Profit under pressure due to discounts and negative operating leverage in H1 2025, excellent cost control ability, maintaining a "buy" rating. Revenue in H1 2025 is 13.055 billion yuan (-7.9% year-on-year, the same below), mainly due to a weak retail environment.
[Brokerage Focus] China Merchants International cuts topsports (06110) target price by 10.7%, rating downgraded to "hold".
King's Capital | CICC released a research report stating that Topsports (06110) performed as expected in the first half of the 25th fiscal year. Revenue decreased by 8% year-on-year to 13.1 billion RMB, while net income dropped by 35% to 0.874 billion RMB, consistent with the previous profit warning. In addition, the gross margin decreased to 41.1% (down 3.6 percentage points year-on-year), falling far below the bank's expectations but offset by cost savings from more store closures. The offline distribution model and Nike's reform at Topsports have made the outlook for the next few months less optimistic. Management anticipates a mid-single-digit year-on-year decrease in sales for the 25th fiscal year.
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