Topsports International Holdings Limited (6110) AI Stock Analysis

• Market Cap: HK$17.36B
• Dividend Yield: 9.65%
• Average Volume (3M): 10.00M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.43
• Revenue Growth: -5.66%
• EPS Growth: -31.36%
• Country: HK
• Employees: 28,941
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.14
• Shares Outstanding: 6,201,222,000
• 10 Day Avg. Volume: 11,779,637
• 30 Day Avg. Volume: 10,004,472
• PEG Ratio: -0.37
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 5.78
• 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$3.85
• Price Target Upside: 35.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$3.00 ▲(5.26% Upside)

Topsports International Holdings Limited's overall stock score is primarily influenced by its stable financial performance and attractive dividend yield. Despite revenue challenges, the company maintains strong cash flow and a solid balance sheet. Technical indicators are mixed, and the earnings call highlights ongoing challenges, leading to a cautious outlook.

Positive Factors

Balance Sheet Strength

Improved debt-to-equity and robust shareholders' equity indicate lower financial risk and greater flexibility. Reduced leverage supports continued investment in omnichannel initiatives, dividend capacity, and resilience to demand shocks over the next several months without forcing asset sales or aggressive refinancing.

Cash Generation / Free Cash Flow

Consistent positive free cash flow and strong operating cash generation provide a durable source of funding for working capital, technology upgrades, and store optimization. This recurring cash generation cushions the business through seasonal volatility and supports strategic investments over a 2-6 month horizon.

Omnichannel & Cost Controls

Double-digit online growth combined with expense reductions (notably rental declines) and tighter inventory suggests structural repositioning toward higher-margin channels and lower fixed costs. These shifts strengthen competitive reach and improve operating leverage as consumer habits continue to favor omnichannel shopping.

Negative Factors

Revenue Decline Trend

Sustained revenue contraction, especially a steep wholesale drop, reduces scale and bargaining power with suppliers and partners. Continued top-line weakness pressures throughput in stores and warehouses, limits reinvestment capacity, and could hamper growth even if short-term cost cuts persist.

Margin Pressure from Discounting

Rising discounting, prevalent in online channels, compresses gross margins and erodes pricing power. Even with controlled expenses, smaller gross spreads make net margin recovery harder and can force reliance on volume or promotions, a structural headwind to sustainable profitability over coming quarters.

Operating Cash Flow Volatility

A near-50% YoY drop in operating cash flow signals vulnerability to timing and working-capital swings. Such volatility reduces liquidity buffers and complicates inventory and supplier financing. If recurrent, it could force tighter credit terms or deferred investments, constraining strategic flexibility.

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 profitability margins and a solid balance sheet. Despite revenue challenges, the company maintains decreasing leverage and strong cash flow generation, providing financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.14B	27.01B	28.93B	27.07B	31.88B	36.01B
Gross Profit	9.44B	10.38B	12.08B	11.28B	13.82B	14.68B
EBITDA	2.30B	3.14B	4.58B	3.14B	4.17B	6.64B
Net Income	1.19B	1.29B	2.21B	1.84B	2.45B	2.77B
Balance Sheet
Total Assets	17.89B	14.90B	14.54B	16.82B	17.80B	17.71B
Cash, Cash Equivalents and Short-Term Investments	5.65B	2.59B	1.96B	2.38B	1.75B	1.23B
Total Debt	5.72B	4.06B	2.71B	4.21B	3.57B	4.99B
Total Liabilities	8.08B	5.84B	4.69B	6.99B	7.21B	8.00B
Stockholders Equity	9.81B	9.06B	9.85B	9.83B	10.58B	9.71B
Cash Flow
Free Cash Flow	2.17B	3.38B	2.73B	3.99B	4.97B	4.06B
Operating Cash Flow	2.50B	3.76B	3.13B	4.35B	5.69B	4.71B
Investing Cash Flow	-309.10M	-297.50M	-198.10M	-305.60M	-671.30M	2.10B
Financing Cash Flow	-2.50B	-2.83B	-3.33B	-3.44B	-4.49B	-8.40B

Topsports International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 2.85 is above the 20-day moving average (MA) of 2.84, below the 50-day MA of 3.01, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3709	80 Outperform	HK$4.87B	9.34	10.59%	4.83%	-7.34%	-28.66%
1368	74 Outperform	HK$13.82B	8.94	15.27%	4.94%	-12.29%	21.00%
6110	68 Neutral	HK$17.36B	13.37	12.82%	9.65%	-5.66%	-31.36%
0709	67 Neutral	HK$2.39B	11.02	10.57%	9.18%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1223	42 Neutral	HK$4.34B	-28.21	-5.37%	0.32%	1.21%	-5.68%
0330	37 Underperform	HK$274.59M	―	―	―	―	―

Topsports International Holdings Limited Corporate Events

Topsports International Sees High Single-Digit Sales Decline and Store Footprint Reduction in Q3 FY2025/26

Topsports International reported that its total retail and wholesale sales fell by a high single-digit percentage year-on-year in the third quarter of FY2025/26, reflecting softer market demand or ongoing adjustments in its sales network. As of 30 November 2025, the gross selling area of its directly-operated stores shrank by 1.3% quarter-on-quarter and 13.4% year-on-year, underscoring a continued rationalisation of its brick‑and‑mortar footprint and signalling a potential shift in its operating strategy that could affect revenue scale and the experience of consumers and downstream retail partners, with investors cautioned that the figures are unaudited and subject to change.

The most recent analyst rating on (HK:6110) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Topsports International Holdings Limited stock, see the HK:6110 Stock Forecast page.