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>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

<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

<ul><li>3Q24 retail sales growth was at low-teens, in line with expectations but the underlying fundamentals are good.</li><li>We still think the outlook for Topsports is solid, despite industry headwinds.</li><li>Maintain BUY and TP of HK$9.23, based on 18x FY2/25E P/E (unchanged).</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.

3Q24 retail sales growth was at low-teens, in line with expectations but the underlying fundamentals are good.We still think the outlook for Topsports is solid, despite industry headwinds.Maintain BUY and TP of HK$9.23, based on 18x FY2/25E P/E (unchanged).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) – Turnaround Continues After a Resilient 3Q24

<ul><li>We believe Topsorts is undergoing a turnaround despite the macro uncertainty.</li><li>Sales growth may still be bumpy but boosted by increased efforts from the principal brands (on new products and marketing) and Topsports (self-initiated efficiency gains), we do foresee faster sales growth and margin improvements onwards.</li><li>The Company is only trading at 12x FY2/25E P/E, still attractive vs 4- year avg. of 13x and a 21% 3-year NP CAGR.</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.

We believe Topsorts is undergoing a turnaround despite the macro uncertainty.Sales growth may still be bumpy but boosted by increased efforts from the principal brands (on new products and marketing) and Topsports (self-initiated efficiency gains), we do foresee faster sales growth and margin improvements onwards.The Company is only trading at 12x FY2/25E P/E, still attractive vs 4- year avg. of 13x and a 21% 3-year NP CAGR.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) – Turnaround Is on Track Despite Bumpy Sales

<ul><li>We initiate BUY on Topsports with TP based on 18x FY2/25E P/E and put it as our sector top pick.</li><li>We forecast 12%/ 20% of sales/ NP CAGR in FY2/23-26E vs -5%/ -4% during FY2/19-23, driven by major improvements in: 1) international brand sales (Nike to maintain its leadership and Adidas to see turnaround with effective strategy in China),</li><li>2) sales per store (driven by higher sales per sq. and increase in store size) and 3) the associated operating leverage.</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.

We initiate BUY on Topsports with TP based on 18x FY2/25E P/E and put it as our sector top pick.We forecast 12%/ 20% of sales/ NP CAGR in FY2/23-26E vs -5%/ -4% during FY2/19-23, driven by major improvements in: 1) international brand sales (Nike to maintain its leadership and Adidas to see turnaround with effective strategy in China),2) sales per store (driven by higher sales per sq. and increase in store size) and 3) the associated operating leverage.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) – Localization and Efficiency-Led 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) - 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

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 (6110 HK) – Turnaround Continues After a Resilient 3Q24

Sales growth acceleration should be from the new products and better marketing while margin improvement should be from self-initiated efficiency...

CMB International

Topsports (6110 HK) – Turnaround Is on Track Despite Bumpy Sales

Sales growth may still be bumpy but boosted by increased efforts from the principal brands (on new products and marketing) and Topsports (self...

CMB International

Topsports (6110 HK) – Localization and Efficiency-Led Turnaround

We forecast 12%/ 20% of sales/ NP CAGR in FY2/23-26E vs -5%/ -4% during FY2/19-23, driven by major improvements in: 1) international brand sales

CMB International

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