External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Topsports International Holdings / Equity Bottom-Up

<ul><li>Supported by our channel checks and comments by management of various brands (Adidas, Pou Sheng, 361 Degrees), we believe the sportswear sector has turned around in YTD 2025 vs 4Q24 (decent retail sales growth during CNY, retail discounts may be high but are likely to bottom out after CNY as inventory has finally normalized).</li><li>We see further upside for Topsports in FY26E, thanks to: 1) a better macro environment, 2) more new product launches, 3) better inventory level and discounts, 4) more support from principal brands, and 5) rapid outdoor brand growth. We upgrade to BUY and revise up TP to HK$ 4.51</li><li>We have turned more positive on FY26E, because of the macro environment, lowered inventory and discount risks and better momentum from the principal brands (more new product launches and margin support).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Supported by our channel checks and comments by management of various brands (Adidas, Pou Sheng, 361 Degrees), we believe the sportswear sector has turned around in YTD 2025 vs 4Q24 (decent retail sales growth during CNY, retail discounts may be high but are likely to bottom out after CNY as inventory has finally normalized).We see further upside for Topsports in FY26E, thanks to: 1) a better macro environment, 2) more new product launches, 3) better inventory level and discounts, 4) more support from principal brands, and 5) rapid outdoor brand growth. We upgrade to BUY and revise up TP to HK$ 4.51We have turned more positive on FY26E, because of the macro environment, lowered inventory and discount risks and better momentum from the principal brands (more new product launches and margin support).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topsports (6110 HK) - Improved in 2H25E, More Catalysts in FY26E

Analyst

Steve

<ul>
<li>
<a href="https://www.smartkarma.com/entities/topsports-international-holdin" target="_blank" data-smartkarma-citation="entities:28153:1" rel="noopener">Topsports International Holdin (6110 HK)</a> is a pure-play on Nike and Adidas retail sales in China, as it is a leading retail partner of Nike and Adidas in China.</li>
<li>Nike's Greater China sales grew 12% yoy during the most recent quarter.  During the earnings call, Nike management was bullish on the prospects of the China business.</li>
<li>The company currently trades at 13x forward PE, with a forward dividend yielf of 7%.  </li>
</ul>



Topsports International Holdin (6110 HK) is a pure-play on Nike and Adidas retail sales in China, as it is a leading retail partner of Nike and Adidas in China.
Nike's Greater China sales grew 12% yoy during the most recent quarter.  During the earnings call, Nike management was bullish on the prospects of the China business.
The company currently trades at 13x forward PE, with a forward dividend yielf of 7%.  


Topsports (6110 HK):  Beneficiary Of An Improving Nike China

<ul><li>What is new? Topsports reported a profit warning for 1H25E (ending Aug 2024).</li><li>The Company is now expecting an around 35% YoY net profit drop in 1H25E (vs RMB 1.3bn in 1H24), due to: 1) worse-than-expected offline traffic, hence a meaningful SSS drop and significant operating deleverage and 2) decline in GP margin as a result of higher retail discounts and greater sales contribution from the lower margin e-commerce business.</li><li>Our view: the miss is mostly about operating deleverage and outlook is still gloomy, but the dividend is attractive after share price drop.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What is new? Topsports reported a profit warning for 1H25E (ending Aug 2024).The Company is now expecting an around 35% YoY net profit drop in 1H25E (vs RMB 1.3bn in 1H24), due to: 1) worse-than-expected offline traffic, hence a meaningful SSS drop and significant operating deleverage and 2) decline in GP margin as a result of higher retail discounts and greater sales contribution from the lower margin e-commerce business.Our view: the miss is mostly about operating deleverage and outlook is still gloomy, but the dividend is attractive after share price drop.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topsports (6110 HK) - Grim outlook but dividend is attractive

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Topsports International Holdings / Event-Driven

<ul>
<li>The China equity markets have continued to trade lower with the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.</li>
<li>We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.</li>
<li>The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">HSCEI Index</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> and <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index</a>.</li>
</ul>


The China equity markets have continued to trade lower with the CSI 300 Index outperforming other mainland indices as the National Team continues to pump money into ETFs tracking the index.
We currently estimate selling of around US$1.39bn across 74 stocks listed on the mainland and in Hong Kong. There could be fewer deletions depending on the review date chosen.
The potential deletes have dropped a lot since the start of the calendar year with big underperformance versus the HSCEI Index, CSI 300 Index and CSI Smallcap 500 Index.


China: Passive Selling Expected Later This Month

<ul><li>High bases are tough for both industry and Topsorts and we are cautious about 1Q25E.</li><li>However, the turnaround in next few quarters is still an important catalyst.</li><li>Also, thanks to the 7% FY2/25E yield, we think the downside is limited</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

High bases are tough for both industry and Topsorts and we are cautious about 1Q25E.However, the turnaround in next few quarters is still an important catalyst.Also, thanks to the 7% FY2/25E yield, we think the downside is limitedContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Topsports (6110 HK) - This Is Likely a Rocky-Road Turnaround

China

Topsports International Holdings Limited operates as a sports shoes and apparel retailer. The Company sells sports shoes, sports shirts, and other products. Topsports International Holdings markets its products throughout China.

Topsports International Holdings (6110 HK)

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Topsports International Holdings (6110 HK)

Topsports (6110 HK) - Improved in 2H25E, More Catalysts in FY26E

Supported by our channel checks and comments by management of various brands (Adidas, Pou Sheng, 361 Degrees), we believe the sportswear sector has...

CMB International

Topsports (6110 HK): Beneficiary Of An Improving Nike China

Topsports International (6110 HK) is a play on improving Nike sales in China, trading at 13x forward PE and 7% forward dividend yield.

Steve

Topsports (6110 HK) - Grim outlook but dividend is attractive

Our view: the miss is mostly about operating deleverage and outlook is still gloomy, but the dividend is attractive after share price drop.

CMB International

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

Topsports (6110 HK) - This Is Likely a Rocky-Road Turnaround

High bases are tough for both industry and Topsorts and we are cautious about 1Q25E. However, the turnaround in next few quarters is still an...

CMB International

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Topsports (6110 HK) - Improved in 2H25E, More Catalysts in FY26E

Supported by our channel checks and comments by management of various brands (Adidas, Pou Sheng, 361 Degrees), we believe the sportswear sector has...

CMB International

Topsports (6110 HK): Beneficiary Of An Improving Nike China

​Topsports International (6110 HK) is a play on improving Nike sales in China, trading at 13x forward PE and 7% forward dividend yield.

Steve

Topsports (6110 HK) - Grim outlook but dividend is attractive

Our view: the miss is mostly about operating deleverage and outlook is still gloomy, but the dividend is attractive after share price drop.

CMB International

China: Passive Selling Expected Later This Month

We currently estimate passive selling of around US$1.39bn across 74 stocks listed in China and HK. The potential deletes have underperformed...

Brian Freitas

Topsports (6110 HK) - This Is Likely a Rocky-Road Turnaround

High bases are tough for both industry and Topsorts and we are cautious about 1Q25E. However, the turnaround in next few quarters is still an...

CMB International

Topsports International (6110 HK) is a play on improving Nike sales in China, trading at 13x forward PE and 7% forward dividend yield.