TOPSPORTS(06110) 华源证券·2024-12-06 14:08Investment Rating - The report assigns an "Accumulate" rating for the company, indicating a positive outlook for its stock performance in the near term [4][64]. Core Views - The company has established deep partnerships with leading international brands such as Nike and Adidas, which are expected to drive future growth despite recent challenges [4][10]. - The company is optimizing its offline channel structure by closing inefficient stores and opening larger, more efficient ones, enhancing customer experience and brand image [4][57]. - The company is well-positioned in the sports apparel distribution industry, with a strong brand portfolio and a commitment to expanding its offerings [5][10]. Summary by Sections 1. Industry Growth and Brand Resources - The sports apparel industry is expected to continue its growth trajectory, driven by increasing consumer spending and the expansion of emerging markets [24][28]. - The company has a rich portfolio of agency brands and a leading dividend yield in the industry, reflecting its strong financial health and commitment to returning value to shareholders [10][35]. 2. Anticipating Recovery of International Brands - The company is poised for recovery as international brands adjust their strategies, with new store formats and products expected to rejuvenate sales channels [4][10]. - The company has been proactive in expanding its brand partnerships, including collaborations with emerging brands, which enhances its revenue diversification and risk resilience [35][10]. 3. Profit Forecast and Rating - The company is projected to achieve net profits of 1.316 billion RMB, 1.627 billion RMB, and 1.873 billion RMB for FY2025, FY2026, and FY2027, respectively, with growth rates of -40.53%, 23.62%, and 15.11% [5][64]. - The report highlights that the company's valuation is relatively low compared to peers, justifying the "Accumulate" rating based on its strong market position and brand resources [5][64]. 4. Key Assumptions - The company is expected to maintain a sales expense ratio of approximately 28.90% to 28.30% from FY2025 to FY2027, reflecting its efficient marketing strategies [59][60]. - Management expenses are projected to decline, indicating improved operational efficiency through digital management systems [59][60].