TOPSPORTS(06110) 申万宏源·2024-12-18 01:06Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its performance relative to the market [5][9]. Core Insights - The company reported its FY25 Q3 operational data, which met expectations, showing a slight year-on-year decline in sales but a significant improvement compared to the previous quarter [5][6]. - Online sales outperformed offline sales during the quarter, with a notable double-digit growth during the Double Eleven shopping festival, leading to an increase in the proportion of online direct sales to 40% [6][9]. - The inventory level remains stable, with a healthy structure, although discount rates have deepened temporarily due to ongoing inventory clearance [7][9]. - The new CEO of NIKE is expected to drive a new product innovation cycle, which could positively impact the company's retail business [8][9]. - The company focuses on high-quality growth in the sports apparel retail sector, leveraging strong partnerships with major brands like NIKE and Adidas [9]. Summary by Sections Market Data - Closing price (HKD): 2.83 - Market capitalization (billion HKD): 175.49 - 52-week high/low (HKD): 6.28/2.11 [3] Financial Performance - FY25 Q3 sales showed a year-on-year decline in the single digits, but improved from a 10-20% decline in the previous quarter [5][6]. - The company expects net profits for FY25-FY27 to be 13.2 billion, 16.7 billion, and 19.3 billion RMB, respectively, with corresponding P/E ratios of 12, 10, and 8 [9][11]. Sales and Inventory - The company’s direct sales area decreased by 4.4% year-on-year, with a high single-digit decline in the number of stores, reflecting an optimization of store structure [6][9]. - The inventory turnover ratio is maintained between 4-5 months, with 70-80% of inventory being new products [7][9]. Future Outlook - The company is expected to benefit from improvements in the retail environment and brand recovery, maintaining a positive long-term growth trend [9].