滔搏-效率提升下静待消费情绪复苏首予“买入”评级-221121（24页）.pdf

1、 See the last page for disclaimer Page 1 of 24 中中外外运运输输 Equity Research Equity Research Report Company Report 股股票票研研究究 公公司司报报告告 证证券券研研究究报报告告 滔滔搏搏 Topsports(06110 HK)纺纺织织服服装装行行业业 Textiles&Apparel Sector Company Report:Topsports(06110 HK)中文版 Hansen Tang 汤瀚森(86755)2397 6884 公司报告：滔搏(06110 HK)Chinese ver

2、sion .hk 21 November 2022 Table_S Efficiency Improved But Waiting For Consumer Sentiment Recovery;Initiate With Buy 效率提升下静待消费情绪复苏，首予“买入”评级 We initiate coverage on Topsports with a TP of HK$6.00 and investment rating of Buy.We expect that the Company will benefit from sales recovery of principal bran

3、ds and improved performance through channel optimization.We forecast FY2023-2025 net profit to be RMB2,308 million,RMB2,763 million and RMB3,055 million,respectively,which represents a 3-year CAGR of 7.7%.Where we differ:As sales of Nike and Adidas in China has declined YoY for consecutive quarters

4、since 2021,the market is concerned about weak revenue growth for the Company going forward.However,we believe that the Company has core competencies in digitalized operations and consumer insights.The Company accelerated the closure of low-productivity and loss-making stores despite overall headwind

5、s in the retail environment to retain the flexibility of store opening and enhanced private domain sales conversion.We expect the Companys sales performance to exceed expectations in 2023,driven by refined Covid-19 control measures.We expect the Companys retail sales to pick up in 2023.The Company a

6、ctively interacted with brand partners to clear excess inventory.We expect the Companys sales to benefit from principal brand sales recovery in China in 2023.In addition,as the Company orderly enhanced its strategic cooperation with Li Ning and Skechers,we expect that revenue contribution from these