TOPSPORTS(HK:06110) Hua Yuan Zheng Quan·2025-10-25 08:52Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is initiating a comprehensive retail strategy with new brand expansions across various categories, enhancing its brand matrix [4] - Despite challenges in the retail environment, the company's strategy is expected to sustain traffic and sales through diversified channels [6] - Collaborations with leading international brands like Nike and Adidas are anticipated to drive future growth [6] Financial Performance Summary - For FY25/26, the company reported a revenue of 12.299 billion RMB, a year-on-year decrease of 5.79%, with a gross profit of 5.037 billion RMB, down 6.06% [6] - The net profit attributable to shareholders for FY25/26 was 789 million RMB, reflecting a decline of 9.69% [6] - The company maintains a high dividend payout ratio, achieving 102.2% in FY25/26, and a cumulative payout ratio of 107.3% since FY2019/20 [6] Earnings Forecast and Valuation - Revenue projections for the company are as follows: 28,933.20 million RMB in 2024, 27,012.90 million RMB in 2025, and 26,443.89 million RMB in 2026, with a forecasted growth rate of -6.64% for 2025 [5] - Net profit forecasts are 2,213 million RMB for 2024, 1,286 million RMB for 2025, and 1,417.56 million RMB for 2026, with a significant decline of 41.89% expected in 2025 [5] - The company is projected to achieve earnings per share of 0.36 RMB in 2024, decreasing to 0.21 RMB in 2025, and recovering to 0.23 RMB in 2026 [5]