Topsports recorded low-teens yoy growth for total sales (retail and wholesale) in 3QFY24, fuelled by the strong sales performance of the retail segment, which achieved high-teens yoy growth and was mainly driven by same-store sales growth. Inventories continued to improve and inventory turnover was slightly below four months by end- 3QFY24. Looking ahead, management is confident that the inventories will stay healthy and the company’s gross margin will improve in 2HFY24.
Topsports’ 1HFY24 results were in line with market expectations. Management stated that consumers’ demand for sporting goods has recovered thanks to the resumption of offline transactions and sequential improvement in sales momentum in Sep 23, as well as the Golden Week holiday. With Adidas revising up full-year revenue guidance, management also saw Adidas’ improvement in both inventory ageing and inventory volume in China. 1HFY24 results beat. Topsports International Holdings (Topsports) rep...
Belle Fashion (BF) aims to raise around US$1bn in its Hong Kong listing, which would mark its return to the stock market after five years. Belle Fashion is the largest China-based fashion footwear and apparel group based on 2020 retail sales value, according to Frost & Sullivan (F&S). It operates a diversified portfolio of 20 self-owned brands and partner brands (including licensed brands and distributed brands). Its products span categories across footwear for women, men and kids, as well as a...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Chinese equity markets pulled back in the last week of Feb 21 on the back of a higher US bond yield. For Mar 21, we expect further volatility before the resumption of risk-on trade. We maintain SELL on Fuyao Glass and MicroPort to hedge against such a risk, and take profit on outperformers. Overall, we recommend keeping to laggards and policy-supported sectors, and add Baosteel, Brilliance, CCB, CR Cement and TUL to our BUY list.
The spectre of rising inflation has lifted US bond yields and may see a meaningful market consolidation in the near term. Beyond this volatility, this could also spell the end of PE expansion as the key driver of stock market performance and a refocus on earnings growth. Rather than focus on cyclicals, we prefer stocks with robust earnings growth. We are adding Alibaba, CCB, Ganfeng Lithium, Topsports and Yongda to our recommended list.
Despite a slight decline in the last week of January, China equity markets still managed to rally further from a historical high level for the full month. The risk of a more substantial market pullback remains; considering the demanding valuations, we keep to laggards and policy-supported sectors, and take profit on outperformers. We add Beijing Easpring, CR Beer, Topsports, WuXi AppTec to our BUY list, and Fuyao Glass, MicroPort, Whart REIC to our SELL list.
KEY STORY GREATER CHINA Initiate Coverage Topsports International Holdings (6110HK/BUY/HK$12.50/Target: HK$15.00): Sportswear market leader trading at bargain prices. GREATER CHINA Sector Automobile: Weekly: PV sales dragged by lockdowns. Downgrade the auto sector to MARKET WEIGHT on increased risks of COVID-19 and chip shortage, and rich valuations. Prefer the NEV segment. Top picks: BYD, CATL and Minth. Upgrade Weichai to BUY. Property Management: Outlook is upbeat for leading property manag...
Nike and Adidas remain a formidable force in China, as seen in their market share leadership, post-COVID-19 return to positive growth and dominating brand equity. As the top retail partner for these brands, Topsports boasts of high quality top-line visibility. Its retail initiatives further supplement this growth with margin expansion. Valuation is cheap relative to other leading sportswear plays. Initiate coverage with BUY and target price of HK$15.00.
KEY HIGHLIGHTS Sector Automobile Weekly: PV sales dragged by lockdowns. Downgrade the auto sector to MARKET WEIGHT on increased risks of COVID-19 and chip shortage, and rich valuations. Prefer the NEV segment. Top picks: BYD, CATL and Minth. Upgrade Weichai to BUY. Property Management Outlook is upbeat for leading property managers; watch out for short-term catalysts. Initiate Coverage Topsports International Holdings (6110 HK/BUY/HK$12.50/Target: HK$15.00) Sportswear market leader trading ...
Nike and Adidas remain a formidable force in China, as seen in their market share leadership, post-COVID-19 return to positive growth and dominating brand equity. As the top retail partner for these brands, Topsports boasts of high quality top-line visibility. Its retail initiatives further supplement this growth with margin expansion. Valuation is cheap relative to other leading sportswear plays. Initiate coverage with BUY and target price of HK$15.00.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.