Topsports International Holdings Limited (6110) AI Stock Analysis

• Market Cap: HK$19.66B
• Dividend Yield: 10.92%
• Average Volume (3M): 13.41M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.44
• Revenue Growth: -7.87%
• EPS Growth: -42.79%
• Country: HK
• Employees: 28,941
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Apparel - Retail
• EPS (TTM): 0.08
• Shares Outstanding: 6,201,222,000
• 10 Day Avg. Volume: 10,128,911
• 30 Day Avg. Volume: 13,405,156
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$4.46
• Price Target Upside: 40.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: HK$3.50 ▲(10.41% Upside)

Topsports International Holdings Limited receives a strong overall score driven by solid financial stability, robust technical indicators, and an attractive valuation. The company's ability to generate cash and maintain a conservative financial structure supports its resilience, while its positive market momentum and appealing dividend yield enhance its investment attractiveness. However, attention to revenue challenges and capital allocation strategies is necessary to mitigate potential risks.

Positive Factors

Brand Partnerships

Topsports is likely to secure more support from the Nike brand, which could enhance GP margin.

Market Environment

The sportswear sector has turned around with decent retail sales growth and inventory normalization.

Negative Factors

Discount Strategy

While the narrower sales decline is encouraging, it comes at a cost of deeper discount, which has deepened vs. Nov-q.

Topsports International Holdings Limited Business Overview & Revenue Model

Company Description

Topsports International Holdings Limited, an investment holding company, engages in the sale of sportswear products in the People's Republic of China. The company is also involved in the leasing of commercial spaces to other retailers for concessionaire sale; provision of information technology services; operation of sports cities business; and trading of sportswear products. As of February 28, 2022, it operated a network of 7,695 directly operated stores. The company also offers its products through e-commerce platform. Topsports International Holdings Limited was founded in 1999 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

Topsports International Holdings Limited generates revenue primarily through the retail sales of sportswear and related products. The company operates a vast network of directly operated and franchised retail stores, which feature a variety of international sports brands. Key revenue streams include the sale of branded sports apparel and footwear, as well as accessories. Additionally, Topsports benefits from strategic partnerships and distribution agreements with major global sports brands, which allow them to offer exclusive products and gain a competitive advantage in the Chinese market. The company also leverages e-commerce platforms to expand its reach and drive sales, further contributing to its revenue.

Topsports International Holdings Limited Financial Statement Overview

Summary

Topsports International Holdings Limited shows stable financial performance with strong cash flow generation and a solid balance sheet, despite challenges in revenue and profitability margins. Reduced leverage and robust stockholders' equity contribute positively, although asset reduction and capital allocation volatility present potential risks.

Income Statement

Topsports International Holdings Limited has experienced fluctuating revenue over the past years with a notable decrease from 2021 to 2025. The gross profit margin remained relatively stable, with a slight decline in more recent years. Net profit margin shows a similar trend, indicating some profitability pressures. EBIT and EBITDA margins are consistent, suggesting stable operating efficiency despite revenue challenges.

Balance Sheet

The company's debt-to-equity ratio has improved, reflecting a more conservative financial structure with reduced leverage. Stockholders' equity remains robust, contributing to a strong equity ratio. However, total assets have decreased over the period, which may signal potential constraints on growth.

Cash Flow

The operating cash flow has remained strong, with free cash flow consistently positive, indicating good cash generation capability. The free cash flow to net income ratio is favorable, highlighting efficient cash operations relative to profitability. However, fluctuations in investing and financing cash flows suggest potential volatility in capital allocation strategies.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.01B	28.93B	27.07B	31.88B	36.01B
Gross Profit	10.38B	12.08B	11.28B	13.82B	14.68B
EBITDA	3.14B	4.58B	3.14B	4.17B	4.71B
Net Income	1.29B	2.21B	1.84B	2.45B	2.77B
Balance Sheet
Total Assets	14.90B	14.54B	16.82B	17.80B	17.71B
Cash, Cash Equivalents and Short-Term Investments	2.59B	1.96B	2.38B	1.75B	1.23B
Total Debt	4.06B	2.71B	4.21B	3.57B	4.99B
Total Liabilities	5.84B	4.69B	6.99B	7.21B	8.00B
Stockholders Equity	9.06B	9.85B	9.83B	10.58B	9.71B
Cash Flow
Free Cash Flow	3.38B	2.73B	3.99B	4.97B	4.06B
Operating Cash Flow	3.76B	3.13B	4.35B	5.69B	4.71B
Investing Cash Flow	-297.50M	-198.10M	-305.60M	-671.30M	2.10B
Financing Cash Flow	-2.83B	-3.33B	-3.44B	-4.49B	-8.40B

Topsports International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.17 is above the 20-day moving average (MA) of 3.10, above the 50-day MA of 2.94, and above the 200-day MA of 2.84, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 69.74 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6110	73 Outperform	HK$19.66B	14.15	13.64%	10.92%	-7.87%	-42.79%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
ESHDF	―	$35.89M	―	-90.66%	―	―	―
GRDZF	―	$314.62M	11.33	10.30%	9.31%	―	―
XTPEF	―	$1.95B	9.86	15.27%	13.65%	―	―
3709	74 Outperform	HK$5.03B	9.95	10.33%	5.11%	-6.46%	-45.94%
1223	51 Neutral	HK$3.09B	―	-5.91%	0.49%	0.93%	17.34%

Topsports International Holdings Limited Corporate Events

Topsports International Approves Key Resolutions at AGM

Topsports International Holdings Limited announced the successful passing of all ordinary resolutions at its Annual General Meeting held on July 18, 2025. Key resolutions included the approval of financial statements, the declaration of final and special dividends, the re-appointment of PricewaterhouseCoopers as auditors, and the re-election of several directors. Additionally, the company granted mandates for share issuance and repurchase, reflecting a strategic move to enhance its financial flexibility and shareholder value.

The most recent analyst rating on (HK:6110) stock is a Buy with a HK$3.75 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports Reports Decline in Q1 FY2025/26 Sales and Store Area

Topsports International Holdings Limited reported a mid-single-digit decline in total sales for the first quarter of FY2025/26, with a notable decrease in the gross selling area of directly-operated stores by 1.3% from the previous quarter and 12.3% year-on-year. This operational update highlights challenges in both retail and wholesale operations, suggesting potential impacts on the company’s market positioning and financial performance.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International Announces AGM and Dividend Plans

Topsports International Holdings Limited has announced its upcoming annual general meeting, where key resolutions will be discussed, including the approval of financial statements, declaration of dividends, and re-election of directors. The company plans to issue a final dividend of RMB2.00 cents and a special dividend of RMB12.00 cents per share, reflecting its strong financial performance. Additionally, the board seeks authorization to manage share capital and director remuneration, indicating a strategic focus on maintaining robust governance and shareholder value.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International Reports Decline in Annual Profits

Topsports International Holdings Limited announced its annual results for the year ended 28 February 2025, reporting a decline in revenue and profits compared to the previous year. The company’s revenue decreased from RMB 28,933.2 million to RMB 27,012.9 million, and profit attributable to equity holders fell from RMB 2,213.0 million to RMB 1,286.0 million. This decline is reflected in the reduced gross profit margin and operating profit margin, indicating challenges in maintaining profitability. The results suggest potential impacts on the company’s market positioning and may concern stakeholders regarding future financial performance.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International Announces Final Dividend for FY 2025

Topsports International Holdings Limited has announced a final cash dividend of RMB 0.02 per share for the financial year ending 28 February 2025, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0733. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International Declares Special Dividend for FY 2025

Topsports International Holdings Limited announced a special dividend of RMB 0.12 per share for the financial year ending 28 February 2025, with payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0733. This announcement reflects the company’s strong financial performance and commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International Reports Sales Decline and Store Contraction in Q4 FY2024/25

Topsports International Holdings Limited reported a mid-single-digit decline in total sales for its retail and wholesale operations in the fourth quarter of FY2024/25. The gross selling area of directly-operated stores decreased by 8.0% from the previous quarter and by 12.4% year-on-year, indicating a contraction in physical retail space. This operational update suggests challenges in maintaining sales growth and store presence, potentially impacting the company’s market positioning and stakeholder interests.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports Revises Annual Caps in Logistics Agreement with Li Xun

Topsports International Holdings Limited has announced a revision to its existing annual caps under the 2024 Logistics Services Framework Agreement with Li Xun, a connected person due to its association with Belle International. The revised annual caps for logistics services fees are set at RMB 658.2 million for the year ending February 28, 2026, and RMB 698.0 million for the year ending February 28, 2027. This revision requires compliance with Chapter 14A of the Listing Rules, but the transactions remain exempt from circular and independent shareholder approval requirements. The amendment is expected to impact the company’s financial operations, reflecting a strategic adjustment in its logistics service agreements.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$2.55 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.

Topsports International to Review Annual Financial Results

Topsports International Holdings Limited has announced a board meeting scheduled for May 21, 2025, to consider and approve the audited financial results for the year ended February 28, 2025. This meeting is significant as it will provide insights into the company’s financial health and performance, potentially impacting its market position and stakeholder confidence.