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Topsports International Holdings Limited
(6110)
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Rating:63Neutral
Price Target:
HK$1.00
▼(-13.79% Downside)
Action:Reiterated
Date:07/23/26
The score is anchored by solid financial resilience (moderate leverage and strong free-cash-flow support) and attractive valuation (low P/E and very high dividend yield). These positives are offset by clearly weak technicals (price below major moving averages and negative MACD) and fundamental pressure from declining revenue and compressed margins.
Positive Factors
Strong Free Cash Flow
Growing free cash flow and close alignment with net income indicate that reported earnings are broadly supported by cash generation. This provides internal funding for inventory, stores, digital operations, and shareholder returns while reducing reliance on external financing over the next several quarters.
Negative Factors
Revenue Decline
The recent revenue contraction signals weaker demand or reduced selling activity across the retail platform, following an already flat prior year. If this persists, lower sales volume can limit operating leverage, reduce purchasing scale, and make it harder to support store and digital investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Growing free cash flow and close alignment with net income indicate that reported earnings are broadly supported by cash generation. This provides internal funding for inventory, stores, digital operations, and shareholder returns while reducing reliance on external financing over the next several quarters.
Read all positive factors
Topsports International Holdings Limited (6110) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.42B
Dividend Yield25%
Average Volume (3M)26.86M
Price to Earnings (P/E)4.2
Beta (1Y)1.53
Revenue Growth-3.55%
EPS Growth-0.62%
CountryHK
Employees22,376
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.20
Shares Outstanding6,201,222,000
10 Day Avg. Volume23,897,181
30 Day Avg. Volume26,855,139
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$2.08Price Target Upside79.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.16
Revenue Forecast (FY)HK$22.99B
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
The company makes money mainly by selling sportswear products to consumers (and, where applicable, to third parties) through its retail network and online channels. Its core revenue stream is retail sales of branded athletic footwear, apparel, and...
Topsports International Holdings Limited Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
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 | Feb 2025 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.73B | 27.01B | 28.93B | 27.07B | 31.88B |
| Gross Profit | 8.16B | 10.38B | 12.08B | 11.28B | 13.82B |
| EBITDA | 2.76B | 3.14B | 4.58B | 3.14B | 4.17B |
| Net Income | 1.22B | 1.29B | 2.21B | 1.84B | 2.45B |
Balance Sheet | |||||
| Total Assets | 14.10B | 14.90B | 14.54B | 16.82B | 17.80B |
| Cash, Cash Equivalents and Short-Term Investments | 3.15B | 2.59B | 1.96B | 2.38B | 1.75B |
| Total Debt | 3.50B | 4.06B | 2.71B | 4.21B | 3.57B |
| Total Liabilities | 5.46B | 5.84B | 4.69B | 6.99B | 7.21B |
| Stockholders Equity | 8.64B | 9.06B | 9.85B | 9.83B | 10.58B |
Cash Flow | |||||
| Free Cash Flow | 2.39B | 3.38B | 2.73B | 3.99B | 4.97B |
| Operating Cash Flow | 2.66B | 3.76B | 3.13B | 4.35B | 5.69B |
| Investing Cash Flow | -561.16M | -297.50M | -198.10M | -305.60M | -671.30M |
| Financing Cash Flow | -2.88B | -2.83B | -3.33B | -3.44B | -4.49B |
Topsports International Holdings Limited Technical Analysis
Negative
1.16
Price Trends
1.27
Negative
1.82
Negative
2.21
Negative
Market Momentum
-0.07
Negative
24.45
Positive
19.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6110, the sentiment is Negative. The current price of 1.16 is above the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.27, and below the 200-day MA of 2.21, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 24.45 is Positive, neither overbought nor oversold. The STOCH value of 19.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.07T | 39.24 | 20.52% | 0.87% | 13.04% | 28.02% | |
72 Outperform | HK$2.25B | 11.06 | 10.15% | 9.96% | -2.94% | -6.03% | |
68 Neutral | HK$9.05B | 5.97 | 12.21% | 8.37% | 10.47% | -8.83% | |
63 Neutral | HK$6.42B | 4.23 | 14.22% | 25.00% | -3.55% | -0.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | HK$157.57M | -4.26 | -9.78% | 10.42% | -9.42% | -58.91% | |
48 Neutral | HK$142.96M | -1.30 | -104.84% | 0.72% | ― | ― |
* Consumer Cyclical Sector Average
HK:6110
Topsports International Holdings Limited
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-60.81%
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HK:6288
Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh
33.46
8.46
33.84%
Topsports International Holdings Limited Corporate Events
Topsports Warns of Hit as Nike Ends Online Sales Deal in China
Jul 22, 2026
Topsports International has disclosed that Nike will completely terminate the group’s existing online sales of Nike products in mainland China effective January 1, 2027. The board expects a significant short-term hit to operations, as online...
Topsports Clarifies Nike Online Ties as Trading Resumes After Speculation
Jun 25, 2026
Topsports International has addressed recent market speculation and trading volatility by clarifying its relationship with Nike in mainland China. The company said it has not received any official notice from Nike about terminating first-tier onli...
Topsports International Reports Double-Digit Sales Decline and Shrinking Store Footprint in Q1 FY2026/27
Jun 25, 2026
Topsports International reported that total sales from its retail and wholesale businesses fell by a low-teens percentage year on year in the first quarter of FY2026/27, covering the period from 1 March to 31 May 2026. The group also reduced its g...
Topsports Halts Hong Kong Trading Pending Inside Information Announcement
Jun 25, 2026
Topsports International Holdings Limited, a Hong Kong-listed sportswear retailer and distributor incorporated in the Cayman Islands, operates a network of outlets focused on branded athletic apparel, footwear and related products across key Asian ...
Topsports Sets AGM to Approve Dividends and Share Issuance Mandate
Jun 24, 2026
Topsports International Holdings Limited has called its annual general meeting for 24 July 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 28 February 2026 and vote on director and...
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.