① What is the mid-term performance expectation for Topsports? ② What is the outlook of institutions for the future?
Caiflance on September 11th (Editor Hu Jiarong) $TOPSPORTS (06110.HK)$ After announcing the mid-term performance expectations, the stock price continued to hit a new low since its listing. It fell by over 20% at one point and, as of the time of publication, it has dropped by 16.17% to HKD 2.23.
According to the announcement of Topsports, the net income of the company is expected to decline by about 35% year-on-year for the six months ending on August 31.
Note: Announcement from Topsports
Affected by the above news, the stock price of Topsports continued to hit a new low since its listing. This performance also dragged down the trend of other sporting goods stocks, such as Li Ning, Anta and $SHENZHOU INTL (02313.HK)$ The stock prices of these companies have all experienced varying degrees of decline.
As of the time of publication, $LI NING (02331.HK)$Please use your Futubull account to access the feature.$ANTA SPORTS (02020.HK)$Please use your Futubull account to access the feature.$CHINA DONGXIANG (03818.HK)$ decreased by 6.63%, 2.82%, and 3.57% respectively.
Note: Trend of sporting goods stocks in Hong Kong.
Institutions expect that the profit of the sports apparel industry may be further revised downwards.
CICC's analysis report mentioned that the profit warning released by Topsports indicates the downturn of the sportswear retail industry. Specifically, Topsports' mid-term profit in the 2024 fiscal year is 1.337 billion yuan, which implies an estimated mid-term profit of about 0.869 billion yuan in the 2025 fiscal year. This figure is significantly lower than CICC's previous expectation of 2.634 billion yuan, and only 38% of the market's general expectation of around 2.3 billion yuan.
CICC also mentioned that due to the uncertainty of this year's 'November 11' shopping festival, industry profits may be further revised downwards, and they stated that they will reevaluate Topsports' target price and rating later.
Additionally, Macquarie downgraded Topsports' rating to neutral with a target price of HK$2.50.