TOPSPORTS (06110) has seen its shares decline over 5%, with a current drop of 5.17%, trading at HKD 3.30, and a transaction volume of HKD 21.84 million. Recently, the company announced its mid-term results for the six months ending August 31, 2025, reporting revenue of approximately HKD 12.2986 billion, a year-on-year decrease of 5.79%. The profit attributable to equity holders was about HKD 789 million, down 9.69% year-on-year, with earnings per share of 12.72 cents. The interim dividend is 13 cents, compared to 14 cents in the same period last year.

Additionally, TOPSPORTS reported a double-digit percentage decline in total sales for its retail and wholesale operations in the second quarter of the 2025/26 fiscal year compared to the previous year. CCB International believes that the company's sales will continue to face pressure in the first half of 2026, although cost control measures are yielding significant benefits. The gross profit margin and expense ratio for the first half remained relatively well-managed, with the gross profit margin slightly down 0.1 percentage points to 41.0%, impacted by changes in discounts and an increased share of online revenue. However, improved retail contributions and support from brands partially offset these negative effects. The firm anticipates clearer signs of recovery in the second half of the fiscal year, maintaining its earnings forecast and target price unchanged, with a neutral rating. The company's interim payout ratio stands at 102%, and the expected dividend yield nearing 7% is seen as providing downside protection for the stock price.