HK Stock Market Move | TOPSPORTS (06110) up more than 3%, Citigroup expects the company to increase market share in Nike's China business.

TOPSPORTS (06110) rose over 3%, as of the time of writing, it had risen by 2.91% to HK $2.83, with a turnover of HK $4.766 million. On the news front, Citi released a research report indicating that it will start a 30-day observation of catalysts for TOPSPORTS. Citi stated that Nike plans to significantly reduce wholesale shipments to the Chinese market from March to May, with sales expected to decrease by 20% year-on-year during this period. This move will significantly reduce the future supply of Nike products in the Chinese market and greatly reduce retail discounts on Nike products, which the bank believes will be beneficial to TOPSPORTS' gross profit margin for the 2027 fiscal year. With Nike product supply tightening, Citi expects Nike to prioritize supplying its largest retail partner in China, TOPSPORTS, which is expected to increase its market share in Nike's China business. TOPSPORTS will announce its 2026 fiscal year performance in May, and the bank expects the company to maintain a high dividend payout ratio, with a dividend yield of around 9%, one of the highest in the industry.