HK Stock Market Move | TOPSPORTS(06110) drops more than 5% again, the company will prioritize clearing inventory in the short term, institutions believe that inventory improvement may be achieved in the near future.

TOPSPORTS (06110) fell by more than 5% again, dropping by 4.9% to HK$3.3 as of the time of writing, with a turnover of HK$163 million. UBS previously released a research report stating that TOPSPORTS' sales for the third quarter of the 2025 fiscal year saw a mid-single-digit year-on-year decline, with retail channels performing slightly better than wholesale, and online sales growing by double digits year-on-year. UBS mentioned that although TOPSPORTS will focus on clearing inventory in the short term, they believe that the valuation is attractive and expect potential improvement in gross profit margins to support the group after this year's large-scale promotions and inventory adjustments, showing confidence in the group's dividend distribution capabilities. Huaxi recently pointed out that in the short term, TOPSPORTS is expected to improve its inventory by the end of this fiscal year (February 2025); in the medium term, with NIKE's new CEO and their potential to focus on running and outdoor activities, they may reach a turning point, while Adidas continues its recovery trend; in the long term, as a strong channel retailer with high-quality partners, an ongoing optimization of terminal store structures, digital transformation driving online sales, and high dividend attributes for the company.