TOPSPORTS Reports Significant Single-Digit Year-over-Year Drop in Total Sales for Q3
Sales Performance: TOPSPORTS reported a high-single-digit decline in total sales for retail and wholesale operations year-over-year for Q3 FY2025/26.
Store Area Decline: As of November 30, 2025, the gross selling area of directly-operated stores decreased by 1.3% from the previous quarter and by 13.4% year-over-year.
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Citi Maintains Buy Rating on ANTA SPORTS; Negative Impacts of Puma Acquisition Already Reflected in Price
ANTA SPORTS Acquisition: ANTA SPORTS announced the acquisition of a 29% stake in Puma for EUR1.5 billion, making it Puma's largest shareholder upon completion.
Market Reaction: Citi reports that the market has largely priced in the negatives related to the acquisition, maintaining a Buy rating on ANTA SPORTS with a target price of HKD107.
Short Selling Data: ANTA SPORTS has a short selling amount of $63.93M with a ratio of 10.045%, indicating significant market activity.
Industry Comparisons: Citi's stock picks favor ANTA SPORTS over competitors like TOPSPORTS and LI NING, all of which are rated Buy.
Citi Highlights LI NING Management: Anticipates Ongoing Retail Discount Pressures This Year; ANTA SPORTS Selected as Preferred Choice in Sportswear Sector
Sales Growth Expectations: LI NING's management anticipates low single-digit year-on-year sales growth for 2025, driven by strong badminton product sales, although they caution that high government subsidies and sales may not be sustainable.
Market Competition and Retail Pressure: Intense competition and market uncertainty are expected to keep retail discounts under pressure, with an increase in advertising and promotional expenses projected for 2026.
Short Selling Data: As of January 15, 2026, LI NING has a short selling amount of $32.75 million with a ratio of 15.269%, indicating significant market skepticism.
Broker Ratings and Target Prices: Citi Research maintains a "Buy" rating for LI NING with a target price increase from HK$20.6 to HK$22, while also providing ratings for ANTA SPORTS and TOPSPORTS.
<Outlook>CCBI and SPDBI's Preferred Hong Kong Stocks (Table)
CCBI's Top Ten Focus Stocks for 2026: CCBI has identified ten key stocks for 2026, including BABA-W, TENCENT, and INNOVENT BIO, with varying short selling ratios indicating market sentiment.
SPDBI's 2026 Outlook Report: SPDBI also released a report highlighting a stock portfolio to monitor, featuring TENCENT and BABA-W, alongside other stocks like HENGRUI PHARMA and POP MART, with significant short selling activity.
Market Trends: Both reports reflect a cautious market environment, with notable short selling ratios for several stocks, suggesting investor skepticism about their performance.
Stock Performance Overview: The reports detail stock price changes and short selling data, indicating a mix of declines and slight gains among the highlighted companies, with some stocks experiencing high short selling ratios.
CICC Lowers TOPSPORTS (06110.HK) Price Target to $3.88, Maintains Outperform Rating
Company Performance: TOPSPORTS (06110.HK) reported results for 3FQ26 that met expectations, but the outlook remains cautious due to weak demand and ongoing brand adjustments.
Earnings Forecast Adjustment: CICC has reduced its FY2026/2027 EPS forecasts for TOPSPORTS by 4% and 13%, respectively, to RMB0.2 and RMB0.23.
Target Price Revision: CICC maintained an Outperform rating for TOPSPORTS while lowering its target price by 7% to $3.88, reflecting projected PE ratios of 17x/15x for FY2026/2027.
Market Activity: The current share price indicates a forecasted PE ratio of 14x/12x for FY2026/2027, with short selling activity reported at $34.05M and a ratio of 20.931%.
Macquarie Lowers TOPSPORTS (06110.HK) Price Target to $3.9 Due to Weak Demand and Key Partner Support
Sales Performance: TOPSPORTS experienced a sales decline in 3FQ26 that aligned with management expectations and mirrored the performance from 2Q25, with weak demand persisting into December.
Nike Partnership: Despite challenges in the Chinese market, TOPSPORTS continues to collaborate closely with Nike, which is expected to provide ongoing support through better wholesale discounts and inventory buybacks.
Profit Forecast Adjustments: Macquarie has reduced its FY2026 and FY2027 net profit forecasts by 4.2% and 3.9% respectively, citing lower revenue expectations and rising expenses due to weaker demand.
Target Price Revision: The brokerage has lowered its target price for TOPSPORTS by 5% to HKD3.90 while maintaining an Outperform rating.
UBS Lowers TOPSPORTS Price Target to HKD3.85 While Maintaining Buy Rating
Sales Performance: TOPSPORTS experienced a high single-digit decline in total sales for its retail and wholesale businesses in the third fiscal quarter, which was worse than expected according to UBS.
Business Segments: The retail segment outperformed the wholesale segment, and the online business continued to grow faster than the offline business, although the gap between them narrowed compared to the first half of the fiscal year.
Target Price Adjustment: UBS has lowered its target price for TOPSPORTS from HKD4.06 to HKD3.85 while maintaining a Buy rating.
Market Activity: The stock saw a short selling of $2.49 million with a ratio of 7.117%, indicating some bearish sentiment in the market.
Citi Maintains Buy Rating on ANTA SPORTS; Negative Impacts of Puma Acquisition Already Reflected in Price
ANTA SPORTS Acquisition: ANTA SPORTS announced the acquisition of a 29% stake in Puma for EUR1.5 billion, making it Puma's largest shareholder upon completion.
Market Reaction: Citi reports that the market has largely priced in the negatives related to the acquisition, maintaining a Buy rating on ANTA SPORTS with a target price of HKD107.
Short Selling Data: ANTA SPORTS has a short selling amount of $63.93M with a ratio of 10.045%, indicating significant market activity.
Industry Comparisons: Citi's stock picks favor ANTA SPORTS over competitors like TOPSPORTS and LI NING, all of which are rated Buy.
Citi Highlights LI NING Management: Anticipates Ongoing Retail Discount Pressures This Year; ANTA SPORTS Selected as Preferred Choice in Sportswear Sector
Sales Growth Expectations: LI NING's management anticipates low single-digit year-on-year sales growth for 2025, driven by strong badminton product sales, although they caution that high government subsidies and sales may not be sustainable.
Market Competition and Retail Pressure: Intense competition and market uncertainty are expected to keep retail discounts under pressure, with an increase in advertising and promotional expenses projected for 2026.
Short Selling Data: As of January 15, 2026, LI NING has a short selling amount of $32.75 million with a ratio of 15.269%, indicating significant market skepticism.
Broker Ratings and Target Prices: Citi Research maintains a "Buy" rating for LI NING with a target price increase from HK$20.6 to HK$22, while also providing ratings for ANTA SPORTS and TOPSPORTS.
<Outlook>CCBI and SPDBI's Preferred Hong Kong Stocks (Table)
CCBI's Top Ten Focus Stocks for 2026: CCBI has identified ten key stocks for 2026, including BABA-W, TENCENT, and INNOVENT BIO, with varying short selling ratios indicating market sentiment.
SPDBI's 2026 Outlook Report: SPDBI also released a report highlighting a stock portfolio to monitor, featuring TENCENT and BABA-W, alongside other stocks like HENGRUI PHARMA and POP MART, with significant short selling activity.
Market Trends: Both reports reflect a cautious market environment, with notable short selling ratios for several stocks, suggesting investor skepticism about their performance.
Stock Performance Overview: The reports detail stock price changes and short selling data, indicating a mix of declines and slight gains among the highlighted companies, with some stocks experiencing high short selling ratios.
CICC Lowers TOPSPORTS (06110.HK) Price Target to $3.88, Maintains Outperform Rating
Company Performance: TOPSPORTS (06110.HK) reported results for 3FQ26 that met expectations, but the outlook remains cautious due to weak demand and ongoing brand adjustments.
Earnings Forecast Adjustment: CICC has reduced its FY2026/2027 EPS forecasts for TOPSPORTS by 4% and 13%, respectively, to RMB0.2 and RMB0.23.
Target Price Revision: CICC maintained an Outperform rating for TOPSPORTS while lowering its target price by 7% to $3.88, reflecting projected PE ratios of 17x/15x for FY2026/2027.
Market Activity: The current share price indicates a forecasted PE ratio of 14x/12x for FY2026/2027, with short selling activity reported at $34.05M and a ratio of 20.931%.
Macquarie Lowers TOPSPORTS (06110.HK) Price Target to $3.9 Due to Weak Demand and Key Partner Support
Sales Performance: TOPSPORTS experienced a sales decline in 3FQ26 that aligned with management expectations and mirrored the performance from 2Q25, with weak demand persisting into December.
Nike Partnership: Despite challenges in the Chinese market, TOPSPORTS continues to collaborate closely with Nike, which is expected to provide ongoing support through better wholesale discounts and inventory buybacks.
Profit Forecast Adjustments: Macquarie has reduced its FY2026 and FY2027 net profit forecasts by 4.2% and 3.9% respectively, citing lower revenue expectations and rising expenses due to weaker demand.
Target Price Revision: The brokerage has lowered its target price for TOPSPORTS by 5% to HKD3.90 while maintaining an Outperform rating.
UBS Lowers TOPSPORTS Price Target to HKD3.85 While Maintaining Buy Rating
Sales Performance: TOPSPORTS experienced a high single-digit decline in total sales for its retail and wholesale businesses in the third fiscal quarter, which was worse than expected according to UBS.
Business Segments: The retail segment outperformed the wholesale segment, and the online business continued to grow faster than the offline business, although the gap between them narrowed compared to the first half of the fiscal year.
Target Price Adjustment: UBS has lowered its target price for TOPSPORTS from HKD4.06 to HKD3.85 while maintaining a Buy rating.
Market Activity: The stock saw a short selling of $2.49 million with a ratio of 7.117%, indicating some bearish sentiment in the market.
