TOPSPORTS(HK:06110) GOLDEN SUN SECURITIES·2024-12-17 00:44Investment Rating - The report maintains a "Buy" rating for the company [4][7]. Core Views - The company experienced a mid-single-digit decline in overall sales for FY2025Q3, with a notable improvement compared to FY2025Q2. The decline in sales is attributed to fluctuations in foot traffic and a challenging consumption environment [2][3]. - The company's e-commerce segment is expected to continue its rapid growth, potentially achieving double-digit growth rates, driven by promotional activities and an expanded platform strategy [3][4]. - The main brands, Nike and Adidas, are showing different growth trajectories, with Adidas maintaining steady growth while Nike is undergoing structural adjustments under new leadership. The long-term growth potential for Nike remains positive, benefiting the company as a key retailer in the Greater China region [4]. Financial Summary - For FY2025, the company is projected to see a high single-digit decline in revenue and a nearly 40% drop in net profit attributable to shareholders. This is influenced by macroeconomic improvements and promotional activities [3][6]. - The financial metrics indicate a revenue forecast of 26,523 million for FY2025, with a net profit of 1,338 million, reflecting a year-over-year decline of 39.6% [6][12]. - The company’s earnings per share (EPS) is expected to be 0.22 for FY2025, with a price-to-earnings (P/E) ratio of 11.6 [6][14]. Operational Insights - The company is focusing on inventory reduction and optimizing its store structure, which includes closing underperforming stores. As of the end of September, the total sales area decreased by 2.1% from August and 4.4% year-over-year [2][4]. - The report highlights the importance of digital transformation and effective membership operations in enhancing retail efficiency and customer loyalty [4]. Market Position - The company is positioned as a leading player in the sports footwear and apparel retail sector, with ongoing efforts to improve store operations and digital capabilities [4][6].