Topsports (06110) fell more than 3%, as of press time, it fell 3.18%, to HK$4.26, with a turnover of HK$1.0437 million.
According to the financial news app, Topsports (06110) fell more than 3%, as of press time, it fell 3.18%, to HK$4.26, with a turnover of HK$1.0437 million.
On the news front, Topsports issued an announcement that in the first quarter of the 2024/25 fiscal year, the total sales amount of the group's retail and wholesale business fell in the mid-single digits year-on-year. As of May 31, 2024, the sales area of directly operated stores decreased by 1.4% compared with the previous quarter and by 0.5% compared with the same period last year.
The sales amount of the retail business is the income from the sales business between the retail stores (offline channels) and e-commerce platforms (online channels) and consumers (including but not limited to value-added tax); the sales amount of the wholesale business is the income from the sales business between the group and downstream retailers (including but not limited to value-added tax).
CMB International previously issued a research report stating that it maintains a "buy" rating on Topsports (06110), and lowers the net profit forecast for the fiscal years of 2025 and 2026 by 10% and 13%, respectively, to reflect the following: slowing industry sales growth; lower-than-expected improvement in retail discounts; and a decrease in operating leverage. The target price has been lowered from HK$9.23 to HK$6.78. The bank stated that the forecast has become more conservative, but there is still a possibility of a turnaround in fiscal year 2025 and beyond, and the 7% dividend yield in fiscal year 2025 provides protection for the stock price. The report stated that the high base has a negative impact on the industry and Topsports, and is cautious about the first quarter of 2025.