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Topsports International Holdings Limited
(6110)
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Rating:66Neutral
Price Target:
HK$1.00
▼(-13.79% Downside)
Action:Reiterated
Date:10/30/26
The score is driven primarily by steady overall financial resilience (moderate leverage and strong free cash flow) alongside a clearly weakened revenue and margin trend. Valuation is a major positive due to the low P/E and very high dividend yield, while technicals are only moderately supportive given the longer-term downtrend despite some near-term stabilization.
Positive Factors
Moderate Leverage
Moderate leverage and a sizable equity base provide financial cushioning as the company manages a softer operating environment. The improvement in debt-to-equity reduces balance-sheet pressure and preserves flexibility to support stores, digital channels, and other business needs over the next several quarters.
Negative Factors
Revenue Contraction
The shift from flat revenue to a material annual decline signals weaker demand or sales productivity rather than sustained expansion. Persistent top-line contraction can reduce operating leverage, limit reinvestment capacity, and make recovery dependent on renewed consumer demand and improved merchandise performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate Leverage
Moderate leverage and a sizable equity base provide financial cushioning as the company manages a softer operating environment. The improvement in debt-to-equity reduces balance-sheet pressure and preserves flexibility to support stores, digital channels, and other business needs over the next several quarters.
Read all positive factors
Topsports International Holdings Limited (6110) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.85B
Dividend Yield22.96%
Average Volume (3M)16.44M
Price to Earnings (P/E)5.4
Beta (1Y)1.25
Revenue Growth-3.43%
EPS Growth-0.67%
CountryHK
Employees22,376
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.17
Shares Outstanding6,201,222,000
10 Day Avg. Volume22,067,298
30 Day Avg. Volume16,440,309
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.98
Price to Sales (P/S)0.69
P/FCF Ratio7.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.43Price Target Upside23.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.15
Revenue Forecast (FY)HK$22.40B
Topsports International Holdings Limited Business Overview & Revenue Model
Company Description
Topsports International Holdings Limited, together with its subsidiaries, an investment holding company, engages in the trading of sportswear products in the People’s Republic of China. The company is involved in the leasing commercial spaces to o...
How the Company Makes Money
Topsports primarily makes money by retailing sportswear products to consumers in China. Its core revenue stream is sales of athletic footwear, apparel, and accessories sourced from brand partners and sold through (1) offline channels (company-oper...
Topsports International Holdings Limited Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 26, 2027
Earnings Call Sentiment Negative
The earnings call presented a mixed performance with significant challenges in revenue and profit margins due to a weak consumer demand and market fluctuations. However, the company has managed some cost efficiencies and growth in the online segment. Despite these efforts, the overall sentiment leans towards concerns about sustained declines in revenue and profit margins.Positive Updates
Online Business Growth
Retail online business sales, including both public and private domains, achieved a double-digit growth year-over-year.
Negative Updates
Revenue Decline
Overall revenue declined by 5.8% to RMB 12.3 billion, with retail business down 3% and wholesale business down 20.3% year-over-year.
Read all updates
Q2-2026 Updates
Positive
Negative
Online Business Growth
Retail online business sales, including both public and private domains, achieved a double-digit growth year-over-year.
Read all positive updates
Company Guidance
The recent call transcript provided a comprehensive update on Topsports' financial performance and strategic initiatives. Despite a challenging external environment, Topsports achieved its planned performance for the first half of the fiscal year, with revenue declining by 5.8% to RMB 12.3 billion, primarily due to weak consumer demand and offline traffic fluctuations. Retail business revenue decreased by 3% year-over-year, while wholesale business saw a significant decline of 20.3%. Gross profit margin slightly declined by 0.1 percentage points to 41%, influenced by deeper discount rates and increasing online sales, which have higher discounts compared to offline channels. The company managed to control total expenses, which decreased by 5.5%, maintaining a stable expense ratio at 33.2%. Topsports continues to focus on enhancing omnichannel retail capabilities and operational efficiency, with a notable reduction in rental expenses by 12.1% year-over-year. The company reported a net operating cash flow of RMB 1.35 billion, down by 48.2%, attributed to timing differences in cash collection due to the Chinese New Year. Topsports remains optimistic about its long-term growth, focusing on omnichannel strategies, user engagement, and technology upgrades to adapt to evolving consumer habits and market conditions.Topsports International Holdings Limited Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Feb 2025 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.90B | 24.73B | 27.01B | 28.93B | 27.07B | 31.88B |
| Gross Profit | 7.71B | 8.16B | 10.38B | 12.08B | 11.28B | 13.82B |
| EBITDA | 2.54B | 2.81B | 3.14B | 4.58B | 3.14B | 4.17B |
| Net Income | 1.12B | 1.22B | 1.29B | 2.21B | 1.84B | 2.45B |
Balance Sheet | ||||||
| Total Assets | 15.62B | 14.10B | 14.90B | 14.54B | 16.82B | 17.80B |
| Cash, Cash Equivalents and Short-Term Investments | 5.74B | 3.15B | 2.59B | 1.96B | 2.38B | 1.75B |
| Total Debt | 5.79B | 3.50B | 4.06B | 2.71B | 4.21B | 3.57B |
| Total Liabilities | 7.28B | 5.46B | 5.84B | 4.69B | 6.99B | 7.21B |
| Stockholders Equity | 8.34B | 8.64B | 9.06B | 9.85B | 9.83B | 10.58B |
Cash Flow | ||||||
| Free Cash Flow | 2.98B | 2.39B | 3.38B | 2.73B | 3.99B | 4.97B |
| Operating Cash Flow | 3.24B | 2.66B | 3.76B | 3.13B | 4.35B | 5.69B |
| Investing Cash Flow | -326.94M | -561.16M | -297.50M | -198.10M | -305.60M | -671.30M |
| Financing Cash Flow | -2.35B | -2.88B | -2.83B | -3.33B | -3.44B | -4.49B |
Topsports International Holdings Limited Technical Analysis
Positive
1.16
Price Trends
1.05
Positive
1.32
Negative
1.92
Negative
Market Momentum
>-0.01
Negative
58.99
Neutral
63.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6110, the sentiment is Positive. The current price of 1.16 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 1.05, and below the 200-day MA of 1.92, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 63.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6110.
Topsports International Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$1.18T | 42.61 | 20.26% | 0.79% | 11.14% | 19.43% | |
72 Outperform | HK$2.01B | 9.87 | 10.15% | 10.52% | -2.94% | -6.03% | |
68 Neutral | HK$9.51B | 6.36 | 12.21% | 7.80% | 10.47% | -8.83% | |
66 Neutral | HK$6.85B | 5.36 | 13.22% | 22.96% | -3.43% | -0.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | HK$172.50M | -4.61 | -9.78% | 9.62% | -9.42% | -58.91% | |
48 Neutral | HK$113.23M | -1.03 | -104.84% | 0.72% | ― | ― |
* Consumer Cyclical Sector Average
HK:6110
Topsports International Holdings Limited
1.11
-1.46
-56.92%
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HK:6288
Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh
36.84
8.84
31.57%
Topsports International Holdings Limited Corporate Events
Topsports strengthens board with new independent director and committee reshuffle
Oct 28, 2026
Topsports International Holdings Limited has appointed veteran accountant George Ho Kwok Wah as an independent non-executive director effective 28 October 2026, bringing more than three decades of experience in accounting, auditing and financial m...
Topsports Sets Out Board Composition and Governance Committee Roles
Oct 28, 2026
Topsports International Holdings Limited announced the current composition of its board of directors, detailing executive, non-executive and independent non-executive members and confirming Yu Wu as both chairman and chief executive officer. The c...
Topsports International’s Interim Profit Falls as Revenue and Margins Decline
Oct 28, 2026
Topsports International reported interim results for the six months ended 31 August 2026 showing a decline in revenue to RMB10.91 billion from RMB12.30 billion and a drop in profit attributable to shareholders to RMB662.6 million from RMB789.1 mil...
Topsports Declares Interim Dividend for Six Months Ended August 2026
Oct 28, 2026
Topsports International Holdings Limited has declared an interim ordinary dividend of RMB 0.11 per share for the six months ended 31 August 2026, for the financial year ending 28 February 2027. The dividend will be paid in Hong Kong dollars at HKD...
Topsports Sales Drop as Store Footprint Shrinks in Q2 FY2026/27
Oct 28, 2026
Topsports reported that total sales from its retail and wholesale operations fell by a low‑teens percentage year on year in the second quarter of FY2026/27, covering the three months to 31 August 2026. The company attributed part of the pres...
Topsports Schedules Board Meeting to Review Interim Results and Possible Dividend
Oct 12, 2026
Topsports International Holdings Limited has scheduled a board meeting for October 28, 2026 in Hong Kong to review and approve the unaudited interim results for the six months ended August 31, 2026. At the same meeting, the board will also conside...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.