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$3.00
▲(5.26% Upside)
Action:DowngradedDate:12/07/25
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 operating cash generation
Consistently positive operating and free cash flow provide durable liquidity to fund working capital, capex, dividends, or buybacks without relying on external financing. This cash generation cushions revenue volatility and supports reinvestment in omnichannel initiatives over the next several quarters.
Negative Factors
Overall revenue decline
A multi-percent revenue decline signals weaker demand and reduced scale economics for retail operations. Persisting top-line contraction can erode bargaining power with brand partners, reduce store profitability, and limit funds available for strategic investments, risking slower recovery over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Consistently positive operating and free cash flow provide durable liquidity to fund working capital, capex, dividends, or buybacks without relying on external financing. This cash generation cushions revenue volatility and supports reinvestment in omnichannel initiatives over the next several quarters.
Read all positive factors
Topsports International Holdings Limited (6110) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$18.85B
Dividend Yield9.65%
Average Volume (3M)10.00M
Price to Earnings (P/E)5.8
Beta (1Y)1.47
Revenue Growth-5.63%
EPS Growth-31.32%
CountryHK
Employees28,941
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.15
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$3.77Price Target Upside32.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.22
Revenue Forecast (FY)HK$25.39B
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 concessi...
How the Company Makes Money
The company primarily makes money by selling sportswear products (mainly footwear, apparel, and accessories) to consumers through its retail network and associated sales channels. Revenue is generated from product sales made in physical stores and...
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.Positive Updates
Online Business Growth
Retail online business sales, including both public and private domains, achieved a double-digit growth year-over-year.
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.
Read all updates
Q2-2026 Updates
Positive
Negative
Online Business Growth
Retail online business sales, including both public and private domains, achieved a double-digit growth year-over-year.
Read all positive updates
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
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
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 | 16.37B | 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 | 7.40B | 5.84B | 4.69B | 6.99B | 7.21B | 8.00B |
| Stockholders Equity | 8.97B | 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
Positive
2.85
Price Trends
2.89
Positive
2.97
Negative
2.98
Negative
Market Momentum
-0.02
Negative
55.90
Neutral
96.64
Negative
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 2.85 is above the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.89, and below the 200-day MA of 2.98, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 96.64 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$4.59B | 11.87 | 8.63% | 4.83% | -4.56% | -14.23% | |
69 Neutral | HK$11.81B | 9.54 | 9.08% | 4.94% | 4.29% | 5.23% | |
68 Neutral | HK$18.85B | 5.77 | 13.24% | 9.65% | -5.63% | -31.32% | |
62 Neutral | HK$2.44B | 10.65 | 10.57% | 9.18% | -1.66% | 0.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
43 Neutral | HK$203.82M | -3.72 | ― | ― | ― | ― | |
42 Neutral | HK$4.22B | -58.33 | -1.40% | 0.32% | 0.39% | 80.59% |
* Consumer Cyclical Sector Average
HK:6110
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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.