Core Insights - Nike continues to showcase its commitment to the Chinese market by participating in the 8th China International Import Expo for the sixth consecutive year, emphasizing the theme of "Victory" which is rooted in the brand's identity [1][2] - The company has launched the ICON. Shanghai creative production center, reflecting its confidence in the Chinese market and its long-term commitment to deepening its presence in China [2] - Nike's integration of its innovation, design, and product teams across its three major brands—Nike, Jordan, and Converse—aims to create a new athlete-centric innovation engine [2][3] Company Strategy - Nike's strategy focuses on listening to athletes' needs and understanding their desire for victory, which drives the company's actions and innovations [2] - The company has been a witness to the growth of China's sports industry since its entry in 1981, maintaining a philosophy of prioritizing athletes and providing inspiration and innovation [2] Brand Messaging - The "Just Do It" slogan is highlighted as a personal declaration for athletes, representing focus, perseverance, and the courage to challenge oneself [3] - Nike aims to deepen collaborations with various sectors to promote sports through innovative content creation and dissemination, especially during major domestic and international sports events [3]

Core Insights - Nike showcased its commitment to the Chinese market during the 8th China International Import Expo by highlighting the achievements of Chinese athletes and the "Just Do It" spirit [1] - The company announced the opening of its creative production center, ICON. Shanghai, emphasizing its long-term dedication to the Chinese market [1] - Nike's integration of innovation and design teams across its brands (Nike, Jordan, and Converse) aims to create a new athlete-centric innovation engine [1] Group 1 - Nike's participation in the expo featured leading technologies and innovative products across multiple sports sectors [1] - The CEO of Nike Greater China expressed the company's commitment to understanding and meeting the needs of athletes [1] - Nike has been involved in the growth of China's sports industry for over 40 years and aims to continue supporting its development [1]

Core Viewpoint - The report from Guosen Securities expresses optimism about the operational resilience and long-term cash returns of Tabo (06110), highlighting a narrowing decline in retail sales and stable gross margins despite a challenging retail environment [1] Group 1: Financial Performance - In the first half of the 2026 fiscal year, Tabo's revenue decreased by 5.8% year-on-year to 12.3 billion, with retail channel revenue at 10.6 billion (down 3.0%) and wholesale channel revenue at 1.62 billion (down 20.3%) [1] - The main brands, Nike and Adidas, generated 10.81 billion in revenue, down 4.8%, while other brands saw a 12.2% decline to 1.41 billion [1] - Net profit attributable to shareholders fell by 9.8% to 790 million, with a slight decrease in gross margin to 41.0% and a net profit margin of 6.4% [1] Group 2: Cash Flow and Dividends - Operating cash flow decreased by 48.2% year-on-year to 1.35 billion, with a net cash ratio of 1.7 [1] - The interim dividend payout ratio was 102.2%, with a dividend of 0.13 per share [1] Group 3: Store and Membership Strategy - As of August 2025, the number of direct-operated stores decreased by 1,125 to 4,688 (down 19.4%), while total sales area declined by 14.1% [2] - The cumulative user base reached 89.1 million, with membership contributing 92.9% of sales, and high-value members accounting for nearly 35% of sales [2] Group 4: Market Position and Growth Strategy - The company is strategically enhancing its presence in the running and outdoor segments, partnering with high-end brands and opening specialized stores [2] - Online retail business experienced double-digit growth, with significant contributions from content e-commerce and private domain operations [2]

Core Viewpoint - The report from Guosen Securities expresses optimism about the operational resilience and long-term cash returns of Tmall (06110), highlighting a narrowing decline in retail and stable gross margins despite a challenging retail environment [1] Financial Performance - Revenue for the first half of the 2026 fiscal year decreased by 5.8% year-on-year to 12.3 billion, with retail channel revenue at 10.6 billion (down 3.0%) and wholesale channel revenue at 1.62 billion (down 20.3%) [1] - Main brand revenues (Nike, Adidas) fell by 4.8% to 10.81 billion, while other brands saw a 12.2% decline to 1.41 billion [1] - Net profit attributable to shareholders dropped by 9.8% to 790 million, with a slight decrease in gross margin by 0.1 percentage points to 41.0% [1] - Operating cash flow net amount decreased by 48.2% to 1.35 billion, with a net cash ratio of 1.7 [1] Store and Membership Strategy - As of August 2025, the number of direct-operated stores decreased by 1,125 to 4,688 (down 19.4%), while total sales area declined by 14.1% [2] - The cumulative user base reached 89.1 million, with membership contributing 92.9% of sales; high-value members accounted for nearly 35% of sales [2] - Online retail business experienced double-digit growth, with significant contributions from content e-commerce and private domain operations [2] Sales Trends - In the second quarter (June to August 2025), total sales for retail and wholesale businesses saw a high single-digit decline, with direct-operated store area decreasing by 3.3% quarter-on-quarter and 14.1% year-on-year [3] - Management indicated expectations for net profit to remain flat for the 2026 fiscal year, with guidance for improved net margins [3]

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 Insights - The article highlights the rising prominence of Tmall (滔搏) in the Chinese retail market, particularly in the context of its collaboration with Nike and Adidas during the "NBA Stars China Tour" [1][2][3] Group 1: Tmall's Role and Strategy - Tmall is transitioning from a behind-the-scenes player to a more visible role, actively participating in the planning and execution of events like the "NBA Stars China Tour" [2] - The company aims to establish a clear identity among consumers, positioning itself as a "super connector" between brands and consumers through unique retail experiences [2][9] - Tmall's collaboration with Nike has evolved from a simple channel relationship to a deep partnership involving joint planning of products, discounts, and sales strategies [4] Group 2: Market Dynamics and Consumer Behavior - The Chinese sports retail market is undergoing significant changes, including channel diversification, specialized demand, and digital decision-making [7] - Online consumption is increasing in China, with local platforms influencing consumer purchasing decisions more than in Western markets [5] - Tmall is adapting to these changes by enhancing its online presence and developing instant retail capabilities to meet consumer demands [8] Group 3: Retail Transformation and Brand Positioning - Tmall is shifting its store roles to become multi-functional hubs that support private domain operations, live streaming sales, and instant fulfillment [8] - The company is also diversifying its brand strategy by introducing niche brands to capture the trend of consumer upgrading [8] - Tmall is focusing on proactive consumer engagement, moving from a passive approach to actively appearing in consumers' decision-making processes [9]

Core Viewpoint - Traditional sports brand distributors are facing significant challenges due to the dual pressures of direct retail and e-commerce, leading to declining sales and profitability [1][2][3] Group 1: Company Performance - Baosheng International (03813.HK) reported a projected revenue of approximately RMB 91.59 billion for the six months ending June 30, 2025, a decrease of about 8.3% year-on-year, with a profit attributable to shareholders of approximately RMB 1.88 billion, down 44.1% [1] - For the fiscal year 2024, Baosheng International's revenue was approximately RMB 184.54 billion, a decline of 8% year-on-year, while profit attributable to shareholders increased by 0.2% to RMB 4.91 billion [1] - Tmall (06110.HK) announced a total revenue decline of 6.64% to RMB 270.13 billion for the fiscal year 2024/25, with net profit dropping by 41.89% to RMB 12.86 billion [2] Group 2: Market Challenges - Both Baosheng International and Tmall are experiencing store closures, attributed to their reliance on traditional distribution channels, which are becoming less viable in a rapidly changing market [2] - The shift in strategy from some international brands towards direct retail and factory outlet stores has further squeezed the margins and customer base of traditional distributors [2] Group 3: Strategic Adjustments - Baosheng International has begun to seek transformation by partnering with new brands, such as Dynafit and XEXYMIX, to diversify its offerings and enter new market segments like yoga apparel and outdoor sports [3] - Tmall is also pursuing diversification by introducing partnerships with niche brands like norda and Mitchell & Ness, as well as outdoor brands like Norrøna [3] - Despite these efforts, the new brands lack the recognition and market scale of established names like Nike and Adidas, posing a challenge for growth [3] Group 4: Market Dynamics - The commercial real estate sector is witnessing a surge in international sports brands opening new stores in China, indicating a competitive landscape where new brands are eager to establish a presence in high-end commercial projects [4]

Core Viewpoint - The company experienced a decline in revenue and net profit in FY2025, attributed to weak consumer demand and reduced foot traffic, but maintained strong cash flow supporting high dividend payouts [1][2][3] Group 1: Financial Performance - FY2025 revenue decreased by 6.6% year-on-year to 27.01 billion yuan, with retail channel revenue down 6.8% to 23.03 billion yuan and wholesale channel revenue down 5.8% to 3.79 billion yuan [1] - Net profit fell by 41.9% year-on-year to 1.29 billion yuan, with a gross margin decline of 3.4 percentage points to 38.4% due to increased promotional discounts and a higher proportion of low-margin online sales [1] - Operating cash flow increased by 20% year-on-year to 3.76 billion yuan, with a free cash flow to net profit ratio of 2.6 times, indicating efficient cash generation [1] Group 2: Operational Strategy - The company reduced its direct store count by 1,124 to 5,020, a decrease of 18.3% year-on-year, while total sales area declined by 12.4%, but single-store sales area increased by 7.2% [2] - Membership sales accounted for 93.2% of total sales, with high-value members contributing nearly 40% of sales, reflecting strong customer loyalty [2] - The company strategically entered the outdoor and professional sports market, becoming the exclusive operator for high-end brands like norda and Norrona in China [2] Group 3: Future Outlook - In Q4 FY2024, total sales for retail and wholesale businesses saw a mid-single-digit decline, with a more significant reduction in direct store area [3] - Management expressed cautious optimism for the new fiscal year, aiming for net profit to remain flat year-on-year while improving net profit margin through cost reduction and increased online channel sales [3] - The company adjusted its profit forecasts for FY2026-2028, expecting net profits of 1.30 billion, 1.46 billion, and 1.63 billion yuan respectively, reflecting a modest growth trajectory [3]

Investment Rating - The report maintains a "Buy" rating for the company [2][5] Core Views - The company reported a revenue of 27.013 billion RMB for FY2025, a decrease of 6.69% year-on-year, and a net profit of 1.286 billion RMB, down 41.89% year-on-year. The company declared a dividend of 0.28 RMB, with a payout ratio of approximately 135% [2] - The decline in revenue is attributed to weak consumer demand and a reduction in foot traffic in offline stores. The company is focusing on efficient large-format stores while eliminating underperforming ones, resulting in a total of 5,020 stores at the end of FY25, a decrease of 1,124 stores year-on-year [3] - The company has seen a 14% year-on-year increase in average store revenue, with a membership base growing to 86 million, contributing 93.2% of in-store sales, of which repeat members account for 70% [3] - The gross margin for FY25 was 38.44%, down 3.31 percentage points, primarily due to declining sales and increased promotional activities. The net margin was 4.76%, a decrease of 2.88 percentage points [4] - The company expects to maintain stable performance in FY2026-2028, with projected EPS of 0.21, 0.24, and 0.28 RMB, and PE ratios of 14, 12, and 10 times respectively [5] Summary by Sections Performance Overview - FY2025 revenue was 27.013 billion RMB, down 6.69% year-on-year, with a net profit of 1.286 billion RMB, down 41.89% year-on-year. The company declared a dividend of 0.28 RMB, with a payout ratio of approximately 135% [2] Operational Analysis - Main brand revenue decreased by 6.1% to 23.311 billion RMB, while other brands fell by 9.9% to 3.505 billion RMB due to weak consumer demand. The company is optimizing its store network by focusing on high-efficiency large stores and reducing the number of low-efficiency stores [3] - The company has enhanced member engagement through diverse marketing activities, resulting in a membership increase of 5 million year-on-year [3] Financial Metrics - The gross margin for FY25 was 38.44%, down 3.31 percentage points, while the net margin was 4.76%, down 2.88 percentage points. The company’s cash flow from operating activities increased by 20% to 3.755 billion RMB, indicating a strong cash position [4] - The company anticipates a recovery in net profit margins in the coming years, with projected EPS growth [5]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][8][59] Core Views - The company's revenue and net profit decline is in line with expectations, with a 6.6% year-on-year decrease in revenue to 27.01 billion yuan for the fiscal year 2025, impacted by weak consumer demand and reduced foot traffic [1][2] - The company maintains a high dividend payout ratio of 135%, reflecting strong cash flow generation capabilities, with a free cash flow to net profit ratio of 2.6 times [2][59] - The company is strategically enhancing its outdoor segment and optimizing its store structure, with a net reduction of 1,124 direct stores to 5,020, while improving single-store sales efficiency [3][59] Summary by Sections Financial Performance - For the fiscal year 2025, retail channel revenue decreased by 6.8% to 23.03 billion yuan, while wholesale channel revenue fell by 5.8% to 3.79 billion yuan [1] - The company's gross profit margin declined by 3.4 percentage points to 38.4%, primarily due to increased promotional discounts and a higher proportion of low-margin online sales [1][2] - The net profit for the fiscal year 2025 dropped by 41.9% to 1.29 billion yuan, with a net profit margin of 4.8% [1][2] Cash Flow and Dividend - Operating cash flow increased by 20% year-on-year to 3.76 billion yuan, indicating efficient cash generation [2] - The company has maintained a cumulative dividend payout ratio of 104.2% since its listing in 2019, showcasing its commitment to returning cash to shareholders [2][59] Strategic Initiatives - The company is focusing on enhancing its membership operations and omnichannel retail capabilities, with membership contributing 93.2% of sales [3] - The company has entered into exclusive partnerships with high-end outdoor brands, aiming to strengthen its product matrix in the professional and trendy segments [3][59] Future Outlook - The management expresses cautious optimism for the new fiscal year, targeting stable net profit levels and improved net profit margins through cost reduction and efficiency enhancements [4][59] - The company has adjusted its profit forecasts for fiscal years 2026 to 2028, expecting net profits of 1.30 billion, 1.46 billion, and 1.63 billion yuan respectively [59][60]