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BOCI Cuts TOPSPORTS (06110.HK) TP to HKD2.9, Maintains Hold
Recommend 8 Positive 6 Negative 5 |
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BOCI issued a research report stating that TOPSPORTS (06110.HK) recorded a 2% YoY decline in net profit for FY2026, broadly in line with the brokers expectations. However, the net closure of 660 stores during the period exceeded expectations, reflecting continued pressure on its omnichannel strategy. In addition, Nikes plan to clear inventory and adjust its strategy in the China market is expected to weigh on TOPSPORTS, with weaker sales likely to continue dragging performance in FY2027. As the company will continue to close more stores in FY2027, the broker expects TOPSPORTS to face challenges in achieving its guidance of flat net profit.
That said, the broker noted that TOPSPORTS plans to distribute 137% of its FY2026 net profit as dividends. A dividend yield of over 12% is expected to provide support to the share price and limit downside risk.
The broker lowered its FY2027 EPS forecast for TOPSPORTS by 8% and reduced the TP from HKD3.3 to HKD2.9, while maintaining a Hold rating. (sl/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
AASTOCKS Financial News |
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