BOCI's analyst rating for TOPSPORTS is based on a 2% year-on-year decline in net profit for FY2026, which aligns with expectations, but the unexpected closure of 660 stores indicates ongoing challenges in its omnichannel strategy. Additionally, Nike's inventory clearance and strategy adjustments in China are likely to negatively impact TOPSPORTS' sales, leading to further performance issues in FY2027. Despite these challenges, the company plans to distribute a significant portion of its net profit as dividends, which may support the share price. The broker has lowered its FY2027 EPS forecast by 8% and reduced the target price, while maintaining a Hold rating.
