Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 4.00 [1][10]. Core Insights - The company reported a revenue of RMB 12.3 billion for the first half of FY25/26, representing a year-on-year decrease of 5.8%, and a net profit attributable to the parent company of RMB 790 million, down 9.7% year-on-year. The interim dividend proposed is HKD 0.13 per share, with a payout ratio increasing by 2.8 percentage points to 102.2% [6][10]. - The company is accelerating its omnichannel retail strategy and optimizing operational efficiency to enhance resilience, maintaining a robust performance despite market challenges. The outlook is positive with expectations of improved retail and discount conditions as inventory levels decrease and new product sales increase [6][10]. Financial Performance Summary - **Revenue and Profit Forecasts**: - FY25 revenue is projected at RMB 27,013 million, a decrease of 6.64% from FY24. The net profit for FY25 is expected to be RMB 1,286 million, down 41.86% year-on-year [5][10]. - **Earnings Per Share (EPS)**: - EPS for FY25 is projected at RMB 0.21, with a gradual increase to RMB 0.27 by FY28 [5][10]. - **Return on Equity (ROE)**: - ROE is expected to improve from 12.97% in FY25 to 17.56% in FY28 [5][10]. - **Dividend Yield**: - The dividend yield is projected to be 8.81% for FY25, decreasing to 6.61% in FY26, and then increasing to 8.63% by FY28 [5][10]. Market and Operational Insights - **Sales Performance**: - The main brands (Nike and Adidas) saw a revenue decline of 4.8%, while other brands experienced a 12.2% drop. Online retail continues to grow, achieving double-digit growth despite a decline in offline traffic [7][10]. - **Inventory Management**: - The company reported a 4.7% decrease in inventory year-on-year, with inventory turnover days increasing by 1.7 days to 150 days [8][10]. - **Omnichannel Strategy**: - The company is enhancing its omnichannel retail capabilities, with over 800 accounts on platforms like Douyin and WeChat, and more than 3,600 mini-program stores [7][10]. Valuation and Comparison - **Valuation Metrics**: - The company is valued at a PE ratio of 14.89 for FY25, decreasing to 11.26 by FY28. The average PE for comparable companies is 12.0x for FY26 [5][10]. - **Target Price Adjustment**: - The target price has been adjusted to HKD 4.00, reflecting the company's leading position in omnichannel retail and attractive dividend yield [10].

Core Insights - The core viewpoint of the articles highlights the resilience and strategic shifts of the company, Tmall International Holdings Limited, in the face of market challenges and evolving consumer demands [1][2]. Group 1: Financial Performance - For the period ending August 31, 2025, the company reported revenue of approximately 12.3 billion and a net profit of about 790 million, demonstrating strong cash generation with cash and cash equivalents reaching around 2.54 billion [1]. - The company has maintained a robust cash position despite the challenging retail environment, showcasing its operational resilience [1]. Group 2: Strategic Initiatives - The company is transitioning from a focus on "scale expansion" to "value cultivation," enriching its new scene layout under a holistic approach [1]. - Digital transformation is a key support for the company's retail operations, advancing in three main directions: integrated, intelligent, and panoramic [1]. - The company emphasizes balancing supply and demand and improving circulation efficiency in its product management, allowing for quick responses to market demand changes [1]. Group 3: Consumer-Centric Approach - The company places consumers at the core of its business, focusing on three dimensions: demand matching, scene penetration, and experience value [2]. - It aims to enhance member lifecycle management and upgrade its membership tier system, integrating multiple platforms to achieve unified rights and benefits in a holistic scene [2].

Core Insights - The company reported a revenue of 12.3 billion and a net profit of 790 million for the period ending August 31, 2025, with cash and cash equivalents amounting to 2.54 billion, indicating a strong financial position [1] - The company has over 20 cooperative brands and a user base exceeding 89 million, showcasing its extensive market reach [1] Business Strategy - The company employs a forward-looking omnichannel retail strategy, focusing on refined user operations and innovative service offerings to build a competitive brand moat [1] - It aims to enhance consumer experience by expanding interaction spaces and optimizing store structures based on brand characteristics and customer demographics [1][2] Online and Offline Integration - The company operates over 800 Douyin and WeChat video accounts, more than 3,600 mini-program stores, and over 3,700 instant retail stores, achieving double-digit growth in online sales [2] - The integration of online and offline channels is emphasized through a "1 (offline store) + N (multiple online scenarios)" model, enhancing operational efficiency and value extension [1][2] Brand Collaboration - The company focuses on building long-term, trust-based strategic partnerships with core brands, facilitating resource sharing and collaborative market activities [3] - Innovative retail practices, such as the Future of Style concept store with Adidas, aim to provide fresh experiences for younger consumers [3][4] Market Positioning - The company is actively exploring new business formats and scenarios in response to the structural transformation towards specialization and segmentation in the sports consumption market [4] - Exclusive partnerships with brands like norda™, soar, Ciele, and Norrøna are established to strengthen its position in the running and high-end outdoor segments [4] User Engagement - The company focuses on user value activation through demand matching, scenario penetration, and experience enhancement, with a significant contribution from membership programs [5] - Membership accounts for 92.9% of total retail sales from offline stores and WeChat mini-programs, indicating strong customer loyalty and potential for higher spending [5] Digital Transformation - The company is advancing its digital infrastructure by enhancing inventory sharing capabilities and implementing AI tools for supply chain and marketing efficiency [6] - The goal is to create a "smart retail ecosystem" that integrates virtual and physical experiences, driven by data connectivity [6] Industry Recognition - The company has been included in the Fortune China 500 list and consistently ranks in the top ten of the CCFA's "Top 100 Fashion Retail and Consumption" [7] - It has received an AA rating from MSCI ESG, reflecting its commitment to sustainable development [7]

Group 1 - The stock of Tmall (06110.HK) has dropped over 5%, currently down 5.17% at 3.3 HKD [1] - The trading volume reached 21.1841 million HKD [1]

Core Viewpoint - The company Tmall (滔搏) reported a decline in revenue and profit for the six months ending August 31, 2025, indicating ongoing challenges in its retail and wholesale business [1] Financial Performance - Revenue for the period was approximately 12.2986 billion yuan, a year-on-year decrease of 5.79% [1] - Profit attributable to equity holders was about 789 million yuan, down 9.69% year-on-year [1] - Earnings per share were 12.72 cents, with an interim dividend of 13 cents compared to 14 cents in the same period last year [1] Sales and Market Trends - The total sales amount for the retail and wholesale business in the second quarter of the fiscal year 2025/26 experienced a high single-digit decline year-on-year [1] - The company is expected to face continued sales pressure in the first half of fiscal year 2026, although cost control measures have shown positive effects [1] Margin and Cost Control - Gross margin slightly decreased by 0.1 percentage points to 41.0%, impacted by changes in discounts and an increase in online revenue share [1] - The contribution from retail business and support from brand partners partially offset negative impacts on gross margin [1] Future Outlook - The company anticipates clearer signs of recovery in the second half of the fiscal year [1] - The interim payout ratio was 102%, with an expected dividend yield close to 7%, which may provide downside protection for the company's stock price [1]

Core Insights - The company reported a decline in revenue and net profit for the first half of the 2026 fiscal year, with revenue at 12.3 billion RMB, down 5.8% year-on-year, and net profit at 790 million RMB, down 9.7% year-on-year [1][2] Financial Performance - Earnings per share (EPS) for the period was 0.13 RMB, with a proposed interim dividend of 0.13 RMB per share, resulting in a payout ratio of 102.2% [1] - The gross profit margin decreased by 0.1 percentage points to 41.0%, while the operating profit margin fell by 0.5 percentage points to 8.1%, and the net profit margin declined by 0.3 percentage points to 6.4% [1][2] Sales and Revenue Breakdown - Revenue from the main brands (Nike and Adidas) and retail business decreased by 4.8% and 3.0% respectively, with total store count decreasing by 332 [1] - Revenue contributions by brand for the first half of 2026 were 87.9% from main brands, 11.5% from other brands, 0.5% from joint venture income, and 0.1% from esports, with respective year-on-year changes of -4.8%, -12.2%, -15.2%, and -39.7% [1] Channel Performance - Revenue by channel showed retail and wholesale income down by 3.0% and 20.3% respectively, with retail accounting for 86.2% of total revenue [2] - The total number of stores decreased to 4,688, with a total sales area down 14.1% year-on-year, while the average sales area per store increased by 6.5% [2] Inventory and Cash Flow - Inventory as of August 2025 decreased by 2.8% quarter-on-quarter to 5.83 billion RMB, down 4.7% year-on-year, with inventory turnover days increasing to 150 days [3] - Operating net cash flow for the first half of 2026 decreased by 48.2% to 1.35 billion RMB [3] Strategic Initiatives - The company is focusing on enhancing its retail operations and optimizing its offline store network while expanding its online presence [3] - New partnerships have been established with running brands and outdoor brands, and a new running concept store has been opened [3] Profit Forecast Adjustments - Due to uncertainties in terminal demand, the company has slightly lowered its profit forecasts for fiscal years 2026 to 2028, with net profit estimates reduced by 5% for 2026 and 6% for 2028 [3]

Core Viewpoint - The company reported a decline in revenue and net profit for FY2026H1, with revenue at 12.299 billion yuan, net profit at 789 million yuan, and operating cash flow at 1.355 billion yuan, reflecting year-on-year decreases of 5.8%, 9.7%, and 48.2% respectively, primarily due to a slight decrease in gross margin, increased management expense ratio, and a decline in other income [1][2] Financial Performance - Revenue and net profit for FY2026H1 were 12.299 billion yuan and 789 million yuan, respectively, with a year-on-year decline of 5.8% and 9.7% [1] - Operating cash flow decreased by 48.2% to 1.355 billion yuan, attributed to an increase in accounts receivable and a decrease in accounts payable [1] - The proposed cash dividend per share is 0.13 yuan, with a payout ratio of 102% and a dividend yield of 8.52% [1] Business Segments - Retail and wholesale revenues were 10.925 billion yuan and 2.035 billion yuan, showing year-on-year declines of 3% and 20% respectively, with a more significant drop in wholesale due to inventory reduction and decreased orders [1] - Main brand revenue decreased by 4.8% to 10.812 billion yuan, while other brands, joint venture fees, and esports revenue saw declines of 12.2%, 15.2%, and 39.7% respectively [1] - The number of stores decreased by 19.4% to 4,688, with a net reduction of 332 stores, while the average sales area per store increased by 6.5% [1] Online and Offline Strategy - The company has adopted a comprehensive online strategy combining platform e-commerce, content e-commerce, and private domain operations, achieving double-digit growth in online retail sales [1] - The company is enhancing its store experience by integrating functional services and social attributes, with initiatives like pop-up stores and collaborations with major brands [1] - The company has opened its first running specialty store, ektos, in Shanghai, focusing on runner needs to increase customer loyalty [1] Inventory and Cash Flow Management - Inventory decreased by 4.7% to 5.83 billion yuan, with inventory turnover days increasing by 2 days to 150 days [2] - Accounts receivable decreased by 1.5% to 930 million yuan, with turnover days decreasing by 4 days to 13 days [2] - Accounts payable decreased significantly by 64% to 300 million yuan, with turnover days down by 7 days to 8 days [2] Future Outlook - Short-term improvements in inventory and a comprehensive online strategy are expected to boost online revenue and compensate for offline traffic declines [2] - Mid-term prospects include potential growth from partnerships with high-end running and outdoor brands [2] - Long-term outlook remains positive due to strong channel partnerships, ongoing digital transformation, and high dividend attributes [2]

Core Viewpoint - Tmall's stock price dropped over 5% following the announcement of its interim results, indicating ongoing challenges in sales and profitability [1] Financial Performance - For the six months ending August 31, 2025, the company reported revenue of approximately 12.2986 billion, a year-on-year decrease of 5.79% [1] - The profit attributable to equity holders was about 789 million, down 9.69% year-on-year [1] - Earnings per share were reported at 12.72 cents, with an interim dividend of 13 cents compared to 14 cents in the same period last year [1] Sales and Market Trends - In the second quarter of the fiscal year 2025/26, the total sales amount for the group's retail and wholesale business experienced a high single-digit decline year-on-year [1] - The company is expected to face continued sales pressure in the first half of fiscal year 2026, although cost control measures have shown positive effects [1] Profitability and Cost Management - The gross profit margin slightly decreased by 0.1 percentage points to 41.0%, impacted by changes in discounts and an increase in online revenue share [1] - The contribution from retail business and support from brand partners partially offset negative impacts on profitability [1] Future Outlook - The company is anticipated to show clearer signs of recovery in the second half of the fiscal year [1] - The interim payout ratio was 102%, with an expected dividend yield close to 7%, which may provide downside protection for the stock price [1]

Investment Rating - The report maintains a "Neutral" rating for the company, with a target price of HKD 2.98, indicating a potential downside of 14.4% from the current price of HKD 3.48 [1][2][11]. Core Insights - The company is experiencing sales pressure in the first half of the 2026 fiscal year, with a revenue of RMB 12.3 billion, reflecting a year-on-year decline of 5.8%. This decline is attributed to fluctuations in consumer demand for sports products and foot traffic in physical stores [6]. - Despite operational challenges, the company has managed to control gross margin and expense ratios effectively, with a gross margin of 41.0% and a net profit margin of 6.4% for the first half of the fiscal year [6]. - The management has set guidance for the full year, aiming for net profit to remain flat year-on-year, with expectations for improved net profit margins [6]. Financial Overview - Revenue projections show a decline from RMB 28,933 million in 2024 to RMB 25,856 million in 2026E, with a year-on-year growth rate of -6.6% in 2025 [5][13]. - Net profit is expected to recover slightly from RMB 1,285 million in 2025 to RMB 1,299 million in 2026E, with a net profit margin of 5.0% [5][14]. - The company has a dividend yield of 6.6% for 2026E, which is expected to provide some downside protection for the stock price [6]. Brand Performance and Strategy - The main brand's performance has shown resilience, with a decline of 4.8% compared to a 12.2% drop in other brands. The company is focusing on optimizing brand structure and enhancing online and offline channel management [6]. - The company plans to deepen its focus on running and outdoor segments, with new brand developments and the opening of the first ektos running store [6]. Store and Online Strategy - The company continues to adjust its store structure, with a net reduction of 332 direct stores to 4,688 as of August 2025, and a total sales area decrease of 14.1% [6]. - Online retail business has seen double-digit growth year-on-year, indicating a shift towards a more integrated retail model combining offline and online strategies [6].

Core Viewpoint - The report from Guosheng Securities indicates that Taobo (06110), a leading domestic sports footwear and apparel retailer, has advanced digital capabilities and improved operational efficiency, although short-term sales are impacted by consumer environment and foot traffic fluctuations. The company is expected to achieve net profits of 1.301 billion, 1.483 billion, and 1.648 billion yuan for FY2026-FY2028, with a current price corresponding to a FY2026 PE of 15 times, maintaining a "Buy" rating [1]. Financial Performance - For FY2026H1, the company's revenue decreased by 5.8% year-on-year to 12.3 billion yuan, with a slight decline in gross margin by 0.1 percentage points to 41%. The net profit attributable to shareholders fell by 9.7% to 790 million yuan, with a net profit margin down by 0.3 percentage points to 6.4%. The company declared an interim dividend of 0.13 yuan per share, with a payout ratio of 102.2%, emphasizing shareholder returns [2]. Brand Performance - The main brand Nike is expected to improve, while the company continues to expand brand partnerships for long-term growth. In FY2026H1, revenue from the main brand and other brands decreased by 4.8% and 12.2% to 10.8 billion and 1.4 billion yuan, respectively. Adidas showed a 7.8% revenue growth in the Greater China region, while Nike's revenue declined by 10% [3]. Business Model Analysis - Retail business outperformed wholesale, with e-commerce showing better performance than offline sales. Retail revenue in FY2026H1 fell by 3% to 10.6 billion yuan, while wholesale revenue dropped by 20.3% to 1.6 billion yuan. The company closed 332 stores, optimizing its channel structure, and the total sales area decreased by 14.1% [4]. E-commerce and User Engagement - The company's e-commerce sales grew rapidly, with a double-digit increase in FY2026H1. The company is enhancing its e-commerce capabilities by leveraging offline stores and expanding into various online channels. The total number of members reached 89.1 million, with member contributions accounting for 92.9% of retail sales from offline stores and WeChat mini-programs [5]. Inventory and Cash Flow - As of August 2025, the company's inventory stood at 5.83 billion yuan, down 4.7% year-on-year, with inventory turnover days at 150 days, an increase of 1.7 days. The net cash flow from operating activities was 1.35 billion yuan, 1.7 times the net profit attributable to shareholders, indicating strong cash flow management [6]. Future Outlook - For FY2026, the company is expected to see a slight decline in revenue, with net profit remaining stable year-on-year. The ongoing fluctuations in offline foot traffic and faster online growth are considered in this outlook [7][8].