Core Viewpoint - The company Tmall (滔搏) reported a decline in revenue and profit for the six months ending August 31, 2025, indicating ongoing challenges in its retail and wholesale business [1] Financial Performance - Revenue for the period was approximately 12.2986 billion yuan, a year-on-year decrease of 5.79% [1] - Profit attributable to equity holders was about 789 million yuan, down 9.69% year-on-year [1] - Earnings per share were 12.72 cents, with an interim dividend of 13 cents compared to 14 cents in the same period last year [1] Sales and Market Trends - The total sales amount for the retail and wholesale business in the second quarter of the fiscal year 2025/26 experienced a high single-digit decline year-on-year [1] - The company is expected to face continued sales pressure in the first half of fiscal year 2026, although cost control measures have shown positive effects [1] Margin and Cost Control - Gross margin slightly decreased by 0.1 percentage points to 41.0%, impacted by changes in discounts and an increase in online revenue share [1] - The contribution from retail business and support from brand partners partially offset negative impacts on gross margin [1] Future Outlook - The company anticipates clearer signs of recovery in the second half of the fiscal year [1] - The interim payout ratio was 102%, with an expected dividend yield close to 7%, which may provide downside protection for the company's stock price [1]

Core Insights - The company reported a decline in revenue and net profit for the first half of the 2026 fiscal year, with revenue at 12.3 billion RMB, down 5.8% year-on-year, and net profit at 790 million RMB, down 9.7% year-on-year [1][2] Financial Performance - Earnings per share (EPS) for the period was 0.13 RMB, with a proposed interim dividend of 0.13 RMB per share, resulting in a payout ratio of 102.2% [1] - The gross profit margin decreased by 0.1 percentage points to 41.0%, while the operating profit margin fell by 0.5 percentage points to 8.1%, and the net profit margin declined by 0.3 percentage points to 6.4% [1][2] Sales and Revenue Breakdown - Revenue from the main brands (Nike and Adidas) and retail business decreased by 4.8% and 3.0% respectively, with total store count decreasing by 332 [1] - Revenue contributions by brand for the first half of 2026 were 87.9% from main brands, 11.5% from other brands, 0.5% from joint venture income, and 0.1% from esports, with respective year-on-year changes of -4.8%, -12.2%, -15.2%, and -39.7% [1] Channel Performance - Revenue by channel showed retail and wholesale income down by 3.0% and 20.3% respectively, with retail accounting for 86.2% of total revenue [2] - The total number of stores decreased to 4,688, with a total sales area down 14.1% year-on-year, while the average sales area per store increased by 6.5% [2] Inventory and Cash Flow - Inventory as of August 2025 decreased by 2.8% quarter-on-quarter to 5.83 billion RMB, down 4.7% year-on-year, with inventory turnover days increasing to 150 days [3] - Operating net cash flow for the first half of 2026 decreased by 48.2% to 1.35 billion RMB [3] Strategic Initiatives - The company is focusing on enhancing its retail operations and optimizing its offline store network while expanding its online presence [3] - New partnerships have been established with running brands and outdoor brands, and a new running concept store has been opened [3] Profit Forecast Adjustments - Due to uncertainties in terminal demand, the company has slightly lowered its profit forecasts for fiscal years 2026 to 2028, with net profit estimates reduced by 5% for 2026 and 6% for 2028 [3]

Core Viewpoint - The company reported a decline in revenue and net profit for FY2026H1, with revenue at 12.299 billion yuan, net profit at 789 million yuan, and operating cash flow at 1.355 billion yuan, reflecting year-on-year decreases of 5.8%, 9.7%, and 48.2% respectively, primarily due to a slight decrease in gross margin, increased management expense ratio, and a decline in other income [1][2] Financial Performance - Revenue and net profit for FY2026H1 were 12.299 billion yuan and 789 million yuan, respectively, with a year-on-year decline of 5.8% and 9.7% [1] - Operating cash flow decreased by 48.2% to 1.355 billion yuan, attributed to an increase in accounts receivable and a decrease in accounts payable [1] - The proposed cash dividend per share is 0.13 yuan, with a payout ratio of 102% and a dividend yield of 8.52% [1] Business Segments - Retail and wholesale revenues were 10.925 billion yuan and 2.035 billion yuan, showing year-on-year declines of 3% and 20% respectively, with a more significant drop in wholesale due to inventory reduction and decreased orders [1] - Main brand revenue decreased by 4.8% to 10.812 billion yuan, while other brands, joint venture fees, and esports revenue saw declines of 12.2%, 15.2%, and 39.7% respectively [1] - The number of stores decreased by 19.4% to 4,688, with a net reduction of 332 stores, while the average sales area per store increased by 6.5% [1] Online and Offline Strategy - The company has adopted a comprehensive online strategy combining platform e-commerce, content e-commerce, and private domain operations, achieving double-digit growth in online retail sales [1] - The company is enhancing its store experience by integrating functional services and social attributes, with initiatives like pop-up stores and collaborations with major brands [1] - The company has opened its first running specialty store, ektos, in Shanghai, focusing on runner needs to increase customer loyalty [1] Inventory and Cash Flow Management - Inventory decreased by 4.7% to 5.83 billion yuan, with inventory turnover days increasing by 2 days to 150 days [2] - Accounts receivable decreased by 1.5% to 930 million yuan, with turnover days decreasing by 4 days to 13 days [2] - Accounts payable decreased significantly by 64% to 300 million yuan, with turnover days down by 7 days to 8 days [2] Future Outlook - Short-term improvements in inventory and a comprehensive online strategy are expected to boost online revenue and compensate for offline traffic declines [2] - Mid-term prospects include potential growth from partnerships with high-end running and outdoor brands [2] - Long-term outlook remains positive due to strong channel partnerships, ongoing digital transformation, and high dividend attributes [2]

Core Viewpoint - Tmall's stock price dropped over 5% following the announcement of its interim results, indicating ongoing challenges in sales and profitability [1] Financial Performance - For the six months ending August 31, 2025, the company reported revenue of approximately 12.2986 billion, a year-on-year decrease of 5.79% [1] - The profit attributable to equity holders was about 789 million, down 9.69% year-on-year [1] - Earnings per share were reported at 12.72 cents, with an interim dividend of 13 cents compared to 14 cents in the same period last year [1] Sales and Market Trends - In the second quarter of the fiscal year 2025/26, the total sales amount for the group's retail and wholesale business experienced a high single-digit decline year-on-year [1] - The company is expected to face continued sales pressure in the first half of fiscal year 2026, although cost control measures have shown positive effects [1] Profitability and Cost Management - The gross profit margin slightly decreased by 0.1 percentage points to 41.0%, impacted by changes in discounts and an increase in online revenue share [1] - The contribution from retail business and support from brand partners partially offset negative impacts on profitability [1] Future Outlook - The company is anticipated to show clearer signs of recovery in the second half of the fiscal year [1] - The interim payout ratio was 102%, with an expected dividend yield close to 7%, which may provide downside protection for the stock price [1]

Core Viewpoint - 中金 maintains a "outperform" rating for 滔搏 (06110) with an adjusted target price of HKD 4.17, reflecting a 23% increase and corresponding to 18/15 times FY26/27 earnings multiples, indicating a 20% upside potential [1] Financial Performance - For 1HFY26 (March-August 2025), the company reported a revenue decline of 6% year-on-year to RMB 12.3 billion and a net profit drop of 10% to RMB 800 million, aligning with expectations [1] - The company declared an interim dividend of RMB 0.13 per share, resulting in a payout ratio of approximately 102% [1] Revenue Breakdown - Revenue from direct sales and wholesale decreased by 3% and 20% respectively in 1HFY26 [2] - The main brands, Nike and Adidas, saw a revenue decline of 5%, accounting for 88% of total revenue, while other brands experienced a 12% drop [1][2] Operational Efficiency - The company operated 4,688 direct stores, a reduction of 332 stores since the beginning of the fiscal year, with same-store sales area increasing by 6.5% year-on-year [2] - The company is focusing on optimizing retail stores and has introduced innovative retail formats, such as the running specialty store, ektos, in Shanghai [2] Profitability and Cost Control - The gross margin slightly decreased by 0.1 percentage points to 41% due to a higher proportion of promotional online sales and increased retail share [3] - The overall expense ratio only increased by 0.1 percentage points to 33.2%, despite the revenue decline [3] - The net profit margin decreased by 0.3 percentage points to 6.4% with a net profit decline of 9.8% [3] Inventory and Cash Flow Management - The company effectively managed inventory, with a 4.7% decrease in inventory levels by the end of August [4] - Operating cash flow for 1HFY25 was RMB 1.35 billion, with a net cash ratio of approximately 1.7, supporting a high dividend payout ratio of 102% [4] Future Outlook - Management indicated that retail performance in September-October aligns with 2QFY26, focusing on profit maintenance and aiming for flat net profit year-on-year for FY26, with an improvement in net profit margin [5]

Core Viewpoint - 中金 maintains a "outperform" rating for 滔搏 (06110) with FY26/27 EPS estimates of 0.21/0.26 HKD, and raises the target price by 23% to 4.17 HKD, indicating a potential upside of 20% based on the adjusted valuation multiples [1] Financial Performance - For 1HFY26 (March-August 2025), the company reported a revenue decline of 6% year-on-year to 12.3 billion HKD and a net profit drop of 10% to 800 million HKD, aligning with expectations [2] - The company declared an interim dividend of 0.13 HKD per share, resulting in a payout ratio of approximately 102% [2] - Revenue was impacted by fluctuations in terminal retail, with the company focusing on optimizing offline channels and expanding online retail operations [2] - Revenue for the main brands Nike and Adidas fell by 5%, accounting for 88% of total revenue, while other brands saw a 12% decline [2] Gross Margin and Cost Control - The gross margin for 1HFY26 slightly decreased by 0.1 percentage points to 41%, attributed to a higher proportion of promotional online sales and increased retail share [3] - The overall expense ratio only increased by 0.1 percentage points to 33.2% due to effective cost management despite revenue decline [3] - The net profit margin for 1HFY26 was 6.4%, down by 0.3 percentage points year-on-year [3] Inventory Management and Cash Flow - The company effectively managed inventory, with a 4.7% year-on-year decrease in inventory levels by the end of August [4] - Operating cash flow for 1HFY25 was 1.35 billion HKD, with a net cash ratio of approximately 1.7, supporting the high dividend payout [4] Future Outlook - Management indicated that terminal retail trends in September-October are consistent with 2QFY26, focusing on profit maintenance for FY26 with guidance for stable net profit and improved net profit margin [5]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company reported a revenue of 12.299 billion yuan for H1 FY2026, a decrease of 5.8% year-on-year, with a net profit of 789 million yuan, down 9.7% year-on-year. The interim dividend declared is 0.13 yuan per share, with a payout ratio of approximately 102% [2]. - The consumer environment has impacted sales, but channel optimization and overall growth have mitigated some pressure. The main brands (Nike and Adidas) saw revenue declines of 4.8% and 12.2%, respectively [2]. - The company continues to optimize its store strategy, reducing the number of direct stores to 4,688, a net decrease of 332 stores, while increasing same-store sales area by 6.5% year-on-year [2]. - The user base has grown to 89.1 million, with member sales contributing 92.9% of total sales, and repeat members accounting for about 60% of member consumption [2]. - Online sales have seen double-digit growth, effectively offsetting the decline in offline traffic [2]. Financial Performance - The gross margin for H1 was 41.0%, a slight decrease of 0.1 percentage points, supported by retail business contributions and brand support from Nike and Adidas [3]. - The company has maintained stable sales and management expense ratios, reflecting prudent cost control and flexibility from its omnichannel retail strategy [3]. - Inventory turnover days increased to 150 days, up by 2 days year-on-year, indicating a healthy inventory level [3]. Future Outlook - The company expects stable performance for the full year, with guidance for an increase in net profit margin. Focus will remain on omnichannel retail and operational efficiency improvements [3]. - The recovery of Nike's sales in FY26 Q1 exceeded expectations, suggesting potential for a rebound in the main brand's business [3]. - New brand expansions into running and outdoor segments, including brands like nordaTM and Norrøna, are anticipated to inject new growth momentum [3]. - Earnings per share (EPS) forecasts for FY2026 to FY2028 are projected at 0.21, 0.24, and 0.28 yuan, with price-to-earnings (PE) ratios of 14, 12, and 10 times, respectively [4].

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of the 2026 fiscal year, with a revenue of 12.3 billion RMB, down 5.8% year-on-year, and a net profit of 790 million RMB, down 9.7% year-on-year, while maintaining a high dividend payout ratio of 102.2% [4][5]. Financial Performance - The company's total sales for the first half of the 2026 fiscal year saw a decline in both quarters, with sales dropping in the mid-single digits to high single digits year-on-year [5]. - Gross margin decreased by 0.1 percentage points to 41.0%, operating margin fell by 0.5 percentage points to 8.1%, and net profit margin declined by 0.3 percentage points to 6.4% [5]. Revenue Breakdown - Revenue from the main brands (Nike and Adidas) decreased by 4.8%, while revenue from other brands fell by 12.2%. The total number of stores decreased by 332 [6]. - The revenue distribution by brand shows that the main brands accounted for 87.9% of total revenue, while other brands contributed 11.5% [6]. Store Performance - As of August 2025, the company operated 4,688 stores, a net decrease of 332 stores since February 2025, with total sales area down 14.1% year-on-year, but average store size increased by 6.5% [6]. Cost and Cash Flow - The company experienced a slight increase in expense ratio by 0.1 percentage points to 33.3%, with selling, general, and administrative expenses showing mixed trends [7]. - Inventory decreased by 2.8% quarter-on-quarter to 5.83 billion RMB, while operating net cash flow dropped significantly by 48.2% year-on-year to 1.35 billion RMB [7].

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown a decline in revenue and net profit for FY2026H1, with revenue at 12.299 billion and net profit at 0.789 billion, reflecting year-on-year decreases of 5.8% and 9.7% respectively [2] - The company has implemented a strategy to improve inventory management and enhance online sales through a combination of platform e-commerce, content e-commerce, and private domain operations [5][6] - The company has established partnerships with high-end running brands and outdoor brands, which are expected to contribute to revenue growth [6] Summary by Sections Financial Performance - For FY2026H1, the company's revenue, net profit, and operating cash flow were 12.299 billion, 0.789 billion, and 1.355 billion respectively, with year-on-year declines of 5.8%, 9.7%, and 48.2% [2] - The company proposed a cash dividend of 0.13 yuan per share, with a payout ratio of 102% and a dividend yield of 8.52% [2] - The gross profit margin decreased by 0.1 percentage points to 41.0%, while the net profit margin fell by 0.3 percentage points to 6.4% [4] Store and Sales Analysis - The number of stores decreased by 18.3%, while the sales area per store increased by 7.2% [3] - Retail and wholesale revenues were 10.925 billion and 2.035 billion respectively, with year-on-year declines of 3% and 20% [3] - The company has adjusted its retail store structure with a tailored approach for each product [3] Online and Brand Strategy - The company has achieved double-digit growth in online retail sales, leveraging both public and private domains [3] - The company has opened its first running concept store, ektos, in Shanghai, focusing on runner needs to enhance customer loyalty [6] - The company has collaborated with brands like nordaTM and Soar to meet differentiated market demands [6] Future Outlook - The company maintains revenue forecasts of 26.385 billion, 27.918 billion, and 29.449 billion for FY26-28, with net profit forecasts of 1.290 billion, 1.452 billion, and 1.624 billion respectively [6] - The company is expected to benefit from a digital transformation that enhances online sales and optimizes store structures [6]

消息面上，滔搏公布截至2025年8月31日止六个月中期业绩，收入约122.986亿元，同比减少5.79%；公 司权益持有人应占溢利约7.89亿元，同比减少9.69%；每股盈利12.72分。中期息13分，上年同期派14 分。此外，滔搏公布，于2025/26财政年度第二季度，集团零售及批发业务的总销售金额按年同比取得 高单位数下跌。 滔搏(06110)涨超3%，截至发稿，涨3.04%，报3.39港元，成交额5507.29万港元。 ...