TOPSPORTS(06110) 交银国际·2024-11-06 02:15Investment Rating - The investment rating for the company is downgraded to "Neutral" [4][3]. Core Insights - The company has experienced a decline in both revenue and net profit for the first half of the fiscal year 2025, with a revenue drop of 7.9% year-on-year to 13.05 billion RMB, slightly below market expectations. The gross margin decreased by 3.6 percentage points to 41.1% due to increased discount rates and a higher proportion of lower-margin wholesale channels [1][3]. - The company maintains a high dividend payout ratio, with an interim dividend of 0.14 RMB per share, resulting in a payout ratio of 99.4%, and an average payout ratio exceeding 100% over the past three years [1][3]. - The total number of stores decreased by over 300, with 5,813 stores in operation by the end of the first half of fiscal year 2025, a year-on-year decrease of 396 stores. However, the quality of membership continues to improve, with a total membership of 81 million, reflecting a 10.8% year-on-year growth [2][3]. - The company is actively expanding its brand partnerships to capture future growth potential, including collaborations with high-end brands in the trail running segment and digital operation platforms [2][3]. Financial Summary - For the fiscal year ending February 29, 2025, the company is projected to have a revenue of 26.58 billion RMB, a decrease of 8.1% year-on-year. The net profit is expected to be 1.472 billion RMB, down 33.4% year-on-year [6][10]. - The earnings per share (EPS) for 2025 is estimated at 0.24 RMB, with a significant adjustment of -42.2% from previous forecasts [6][10]. - The company’s price-to-earnings (P/E) ratio is projected to be 10.3 times for 2025, reflecting a downward adjustment from previous estimates [6][10].