Citigroup: Significantly lowers Tapoi's target price to HK$2.12, lowers sales and net profit forecasts.

Citigroup released a report indicating that starting from January 2027, Nike will terminate the majority of its online distribution business with Chinese retailers, in line with the bank's earlier scenario forecasts. Due to the potential negative impact of losing Nike's online business, Citigroup has lowered its sales forecast for 2027 and 2028 by 20% and 27% respectively, and adjusted net profit forecasts by 23% and 25% accordingly. At the same time, the bank has reduced its target P/E multiple from 16 times to 11 times to reflect the decline in earnings visibility and growth prospects, and has shifted its valuation benchmark year to the calendar year 2027. Citigroup has significantly lowered its target price for Nike to HK$2.12 from HK$3.8, while maintaining a "buy" rating, mainly supported by attractive valuations and a dividend yield of over 10%. The bank expects retail sales in China to rebound in the 2027 fiscal year, partially alleviating the business decline caused by Nike's termination of online distribution partnerships.