TOPSPORTS (06110) reported slightly better-than-expected results for the first half ending August 2025, benefiting from resilient gross margins. Although cautious about the company's sales growth in the second half of fiscal 2026, CMB International expects margin expansion driven by strong support from core brands and the closure of underperforming stores.

The bank expressed increased confidence in TOPSPORTS' recovery prospects, citing multiple positive signals from Nike, though the process may take considerable time. Based on an estimated fiscal 2027 dividend yield of 8%, CMB International maintained its "Buy" rating and raised the target price from HK$3.62 to HK$3.77.