TOPSPORTS(06110) 光大证券·2024-09-13 00:14Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company expects a decline of approximately 35% in net profit attributable to shareholders for the first half of the 2025 fiscal year, primarily due to weak consumer demand and increased promotional efforts [2] - The main brands, Nike and Adidas, show contrasting outlooks, with Nike being cautious and expecting a decline in revenue, while Adidas remains optimistic about growth [2] - The company plans to implement various measures to manage inventory effectively and will introduce niche brands to enhance its brand matrix [2] Summary by Sections Financial Performance - For FY2025, the company forecasts a revenue of 26,146 million, a decrease of 9.6% from FY2024 [3] - The net profit for FY2025 is projected at 1,488 million, reflecting a decline of 32.8% compared to FY2024 [3] - The EPS for FY2025 is estimated to be 0.24, with a P/E ratio of 8 [3] Market Data - The total market capitalization is 138.29 billion HKD, with a total share capital of 6.201 billion shares [5] - The stock has traded between 2.11 and 6.96 HKD over the past year, with a turnover rate of 26.9% in the last three months [5] Profitability Metrics - The gross margin is expected to be 41.1% for FY2025, with a net profit margin of 5.7% [7] - The return on equity (ROE) is projected to be 14.9% for FY2025 [7] Valuation Metrics - The company maintains a high dividend payout ratio, exceeding 100% in the previous years, indicating strong dividend attributes [2] - The projected P/B ratio remains stable at around 1.3 for the upcoming years [3][7]