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Topsports International Holdings Limited (HK:6110)
:6110
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Topsports International Holdings Limited
(6110)
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Rating:68Neutral
Price Target:
HK$3.50
▲(20.69% 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
Strong Profitability Margins
Strong profitability margins indicate efficient cost management and pricing power, supporting long-term financial health and competitive positioning.
Cash Flow Generation
Consistent positive cash flow generation provides financial flexibility for growth investments and debt management, enhancing long-term stability.
Decreasing Leverage
Reduced leverage lowers financial risk, improving the company's ability to withstand economic downturns and invest in growth opportunities.
Negative Factors
Revenue Decline
Declining revenue trends can signal weakening market demand or competitive pressures, potentially impacting long-term growth prospects.
Profitability Pressures
Declining net profit margins may indicate rising costs or pricing pressures, which can affect long-term profitability and shareholder returns.
Asset Decrease
A decrease in total assets could limit the company's ability to invest in new opportunities, potentially hindering future expansion and competitiveness.
Topsports International Holdings Limited (6110) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$18.60B
Dividend Yield9.65%
Average Volume (3M)10.00M
Price to Earnings (P/E)13.8
Beta (1Y)1.39
Revenue Growth-5.66%
EPS Growth-31.36%
CountryHK
Employees28,941
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.14
Shares Outstanding6,201,222,000
10 Day Avg. Volume11,779,637
30 Day Avg. Volume10,004,472
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)2.16
Price to Sales (P/S)0.72
P/FCF Ratio5.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.26Price Target Upside46.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Topsports International Holdings Limited Business Overview & Revenue Model
Company DescriptionTopsports 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 MoneyTopsports 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 Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Negative
The earnings call presented a mixed performance with significant challenges in revenue and profit margins due to a weak consumer demand and market fluctuations. However, the company has managed some cost efficiencies and growth in the online segment. Despite these efforts, the overall sentiment leans towards concerns about sustained declines in revenue and profit margins.Q2-2026 Updates
Positive Updates
Online Business Growth
Retail online business sales, including both public and private domains, achieved a double-digit growth year-over-year.
Expense Management
Total expenses decreased by 5.5%, with a slight increase in the expense ratio by only 0.1%, reaching 33.2%. Rental expense ratio declined by 0.8 percentage points.
Inventory Management
Inventory amount decreased by 4.7%, and turnover days increased slightly, indicating effective inventory management.
Negative Updates
Revenue Decline
Overall revenue declined by 5.8% to RMB 12.3 billion, with retail business down 3% and wholesale business down 20.3% year-over-year.
Gross Profit Margin Decline
Gross profit margin declined by 0.1 percentage points, reaching 41%, affected by deeper discounts offered, especially in online channels.
Net Profit Decline
Net profit declined by 6% year-over-year, consistent with a 5.8% revenue decline.
Cash Flow Reduction
Net operating cash flow was RMB 1.35 billion, down by 48.2%, impacted by the timing of the Chinese New Year and procurement changes.
Company Guidance
The recent call transcript provided a comprehensive update on Topsports' financial performance and strategic initiatives. Despite a challenging external environment, Topsports achieved its planned performance for the first half of the fiscal year, with revenue declining by 5.8% to RMB 12.3 billion, primarily due to weak consumer demand and offline traffic fluctuations. Retail business revenue decreased by 3% year-over-year, while wholesale business saw a significant decline of 20.3%. Gross profit margin slightly declined by 0.1 percentage points to 41%, influenced by deeper discount rates and increasing online sales, which have higher discounts compared to offline channels. The company managed to control total expenses, which decreased by 5.5%, maintaining a stable expense ratio at 33.2%. Topsports continues to focus on enhancing omnichannel retail capabilities and operational efficiency, with a notable reduction in rental expenses by 12.1% year-over-year. The company reported a net operating cash flow of RMB 1.35 billion, down by 48.2%, attributed to timing differences in cash collection due to the Chinese New Year. Topsports remains optimistic about its long-term growth, focusing on omnichannel strategies, user engagement, and technology upgrades to adapt to evolving consumer habits and market conditions.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 | 27.27B | 27.01B | 28.93B | 27.07B | 31.88B | 36.01B |
| Gross Profit | 9.85B | 10.38B | 12.08B | 11.28B | 13.82B | 14.68B |
| EBITDA | 2.45B | 3.14B | 4.58B | 3.14B | 4.17B | 6.64B |
| Net Income | 1.27B | 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 | 2.28B | 3.38B | 2.73B | 3.99B | 4.97B | 4.06B |
| Operating Cash Flow | 2.63B | 3.76B | 3.13B | 4.35B | 5.69B | 4.71B |
| Investing Cash Flow | -321.01M | -297.50M | -198.10M | -305.60M | -671.30M | 2.10B |
| Financing Cash Flow | -2.62B | -2.83B | -3.33B | -3.44B | -4.49B | -8.40B |
Topsports International Holdings Limited Technical Analysis
Negative
2.90
Price Trends
3.11
Negative
3.08
Negative
2.95
Negative
Market Momentum
-0.07
Negative
42.07
Neutral
57.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6110, the sentiment is Negative. The current price of 2.9 is below the 20-day moving average (MA) of 3.00, below the 50-day MA of 3.11, and below the 200-day MA of 2.95, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 57.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6110.
Topsports International Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$5.15B | 9.90 | 10.59% | 4.83% | -7.34% | -28.66% | |
74 Outperform | $14.22B | 9.11 | 15.27% | 4.94% | -12.29% | 21.00% | |
68 Neutral | HK$18.60B | 13.84 | 12.82% | 9.65% | -5.66% | -31.36% | |
67 Neutral | HK$2.31B | 10.65 | 10.57% | 9.18% | 3.78% | -21.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
42 Neutral | HK$4.46B | -28.60 | -5.37% | 0.32% | 1.21% | -5.68% | |
37 Underperform | HK$311.39M | ― | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
HK:6110
Topsports International Holdings Limited
2.90
0.40
16.00%
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Topsports International Holdings Limited Corporate Events
Topsports International Sees High Single-Digit Sales Decline and Store Footprint Reduction in Q3 FY2025/26
Dec 22, 2025
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.
Topsports International Reports Decline in Q2 Sales and Store Area
Oct 22, 2025
Topsports International Holdings Limited reported a high-single-digit decline in total sales for its retail and wholesale operations in the second quarter of FY2025/26 compared to the previous year. The gross selling area of directly-operated stores also decreased by 3.3% from the previous quarter and 14.1% year-on-year, indicating a contraction in physical retail space. This operational update, based on unaudited data, suggests challenges in maintaining sales growth and store presence, impacting the company’s market positioning and potentially affecting shareholder decisions.
The most recent analyst rating on (HK:6110) stock is a Buy 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.
Topsports International Declares Interim Dividend for 2025
Oct 22, 2025
Topsports International Holdings Limited has announced an interim ordinary cash dividend of RMB 0.13 per share for the six months ending 31 August 2025. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.1401 per share, with the payment date set for 18 December 2025. This announcement reflects the company’s ongoing financial performance and commitment to returning value to its shareholders.
The most recent analyst rating on (HK:6110) stock is a Buy 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.
Topsports International Reports Decline in Interim Revenue and Profit for 2025
Oct 22, 2025
Topsports International Holdings Limited announced its interim financial results for the six months ended August 31, 2025, showing a decline in revenue and profit compared to the same period in 2024. The company reported a revenue of RMB 12,298.6 million and a profit attributable to equity holders of RMB 789.1 million, reflecting a decrease from the previous year. Despite the drop in financial performance, the company maintained a net cash position and a stable current ratio, indicating a strong liquidity position.
The most recent analyst rating on (HK:6110) stock is a Buy 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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.