CMB International Securities analyst Walter Woo upgraded the rating on Topsports International Holdings Limited (6110 – Research Report) to a Buy today, setting a price target of HK$4.51.
Walter Woo has given his Buy rating due to a combination of factors that suggest a positive outlook for Topsports International Holdings Limited. The sportswear sector has shown significant improvement in 2025, with retail sales growth during the Chinese New Year and a normalization of inventory levels, which are expected to lead to reduced retail discounts. This sets a strong foundation for Topsports moving into FY26E.
Furthermore, the company is poised to benefit from a favorable macroeconomic environment and increased support from major brands like Adidas and Nike. The introduction of new product lines and the rapid growth of outdoor brands such as HOKA and KAILAS are expected to drive sales and profit growth. Additionally, the central government’s supportive measures for consumer sectors and the normalization of trade fair orders contribute to a more stable industry outlook, reinforcing the Buy rating.
Woo covers the Consumer Cyclical sector, focusing on stocks such as Yum China Holdings, Luckin Coffee, and ANTA Sports Products. According to TipRanks, Woo has an average return of 4.7% and a 56.82% success rate on recommended stocks.