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>1H26 (ending Aug 2025) results were slightly better than expected, thanks to resilient GP margin.</li><li>Even though we are cautious about sales growth ahead in 2H26E, margin expansion is still likely given the strong support from principal brands and closure of many under-performing stores.</li><li>Thanks to various positive signs out of Nike, we start to have more confidence on its turnaround (even it may take quite some time). Due to the 8% FY27E yield, we maintain BUY.</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.

1H26 (ending Aug 2025) results were slightly better than expected, thanks to resilient GP margin.Even though we are cautious about sales growth ahead in 2H26E, margin expansion is still likely given the strong support from principal brands and closure of many under-performing stores.Thanks to various positive signs out of Nike, we start to have more confidence on its turnaround (even it may take quite some time). Due to the 8% FY27E yield, we maintain BUY.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) - Guidance Kept; Prioritizing Profit over Sales

<ul><li>Sales drop of the principal brands narrowed in 2H25 (ending Feb 2025) vs 1H25.</li><li>However, because of the weaker-than-expected GP margin and other brands’ sales, FY25 net profit was a miss; and FY26E guidance is conservative in our view.</li><li>However, thanks to an impressive payout ratio of 135% and strong cash flow, we tend to believe that the dividend yield in FY26E could also be decent (CMBI est. 9%). Hence we maintain our BUY rating.</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.

Sales drop of the principal brands narrowed in 2H25 (ending Feb 2025) vs 1H25.However, because of the weaker-than-expected GP margin and other brands’ sales, FY25 net profit was a miss; and FY26E guidance is conservative in our view.However, thanks to an impressive payout ratio of 135% and strong cash flow, we tend to believe that the dividend yield in FY26E could also be decent (CMBI est. 9%). Hence we maintain our BUY rating.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) - Prudent Guidance but Strong Cash Flow & Yield

<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

<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

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) - Guidance Kept; Prioritizing Profit over Sales

Even though we are cautious about sales growth ahead in 2H26E, margin expansion is still likely given the strong support from principal brands and...

CMB International

Topsports (6110 HK) - Prudent Guidance but Strong Cash Flow & Yield

Sales drop of the principal brands narrowed in 2H25 (ending Feb 2025) vs 1H25. However, because of the weaker-than-expected GP margin and other...

CMB International

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) - 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

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