TOPSPORTS(HK:06110) GOLDEN SUN SECURITIES·2024-06-28 03:01Investment Rating - The report maintains a "Buy" rating for the company [2][4]. Core Views - The company experienced a mid-single-digit decline in overall sales for FY2025 Q1, attributed to weak offline traffic and a high base effect from the previous year [1]. - Despite the short-term challenges, the company is expected to enhance operational efficiency and improve sales through a combination of physical stores, community engagement, and live streaming [1]. - E-commerce sales are projected to continue growing, with online sales expected to account for 20%-30% of total direct sales in FY2024, further driving revenue growth [1]. - For FY2025, the company anticipates a revenue growth of 5% and an improvement in profitability, supported by a healthy inventory level and operational efficiency [1][2]. Financial Summary - The company's projected financials for FY2025 include: - Revenue of 30,371 million [3][9]. - Net profit of 2,406 million, reflecting an 8.7% year-over-year growth [3][11]. - EPS (Earnings Per Share) is expected to be 0.39 [3][11]. - The company’s revenue growth rates are forecasted at -15.1% for 2023, 6.9% for 2024, and 5.0% for 2025 [3][11]. - The projected P/E ratio for FY2025 is 10.4 [3][11].