CITIC SEC maintains a "buy" rating on TOPSPORTS (06110) with a target price of 3.5 Hong Kong dollars.

CITIC SEC released a research report stating that TOPSPORTS (06110) FY1H26 revenue/net profit decreased by -5.8%/-9.7% year-on-year, reflecting continued customer traffic and discount pressures. The company maintains its full-year performance guidance. In the short term, offline customer traffic in the industry is relatively weak, with the proportion of online channels offering deep discounts continuing to rise, putting pressure on overall channel discounts. In the medium to long term, with the recovery of industry inventory health, the resumption of sales momentum for leading brands such as Nike, and the continued strong performance of new exclusive brands in the running and outdoor categories such as SOAR & Norrna & Norda, the company is expected to gradually return to a stable growth track. The bank gives the company a 15x PE for the 2026 fiscal year, with a target price of 3.5 Hong Kong dollars, and maintains a "buy" rating.