Added to YB: 2026-05-25
Pitch date: 2026-05-21
6110.HK [neutral]
Topsports International Holdings Limited
Author Info
No bio for this author
Company Info
Topsports International Holdings Limited, together with its subsidiaries, an investment holding company, engages in the trading of sportswear products in the People’s Republic of China.
Market Cap
HKD 15.2B
Pitch Price
N/A
Price Target
N/A
Dividend
11.04%
EV/EBITDA
6.27
P/E
12.63
EV/Sales
0.70
Sector
Specialty Retail
Category
dividend
Topsports: 10% dividend yield. But I decided to pass. Why?
6110.HK (pass): China's largest Nike/Adidas retailer at 12x P/E, 10% yield. ROA fell from 13% to 9% as market share halved from 30% to 15% since FY2017. Consumer shift to domestic brands (ANTA, Li Ning) accelerated post-Xinjiang cotton boycott. Dividends funded by debt; net debt 2x op profit, LTM div cut -22%. Weak governance: CEO is also chairman, limited disclosures, no goodwill impairment despite deteriorating fundamentals. High yield unsustainable.
Read full article (3 min)