UBS has reported that TOPSPORTS (06110) expects a decline in both revenue and net profit for the first half of fiscal year 2026, with anticipated decreases of 6% and 10%, bringing the totals to RMB 12.299 billion and RMB 789 million, respectively. The net profit aligns with UBS's expectations, outperforming the market forecast of a 16% decline year on year. This slight revenue drop was offset by higher gross margins and reduced financial expenses. The report notes that the management of TOPSPORTS maintains guidance for flat net profit and improved net profit margin for the full fiscal year 2026 while focusing on enhancing operational efficiency. UBS raised its target price from HKD 3.55 to HKD 4.06 and revised net profit forecasts for fiscal years 2026 to 2028 upward by 0-5%, reflecting the long-term recovery prospects of its U.S. brand partners, and maintained a "Buy" rating.