Bank of America Securities released a research report saying that due to the reorganization of Adidas brand NeobaccaratpokeballWith lower revenue assumptions, Topo (06110)'s earnings per share forecast for fiscal years 2024 and 2025 will be lowered by 8% and 7% respectively, and its target price will be adjusted from 7.baccaratpokeballHK$.9 was downgraded nearly 8% to HK$7.3, but the "Buy" rating was reiterated. The bank is optimistic that its multi-brand portfolio allows the company to capture the needs of different customers for brands and products; its profit margins are flexible and strong retail operating capabilities bring higher efficiency; and it is a valuable target in the sportswear sector, with a dividend yield of 7%.

The report stated that Tobo will announce its full-year results for the end of February 2024 on the 22nd of this month. The bank expects the group's full-year after-tax profit to increase by 22% year-on-year to 2.2 billion yuan, revenue is expected to increase by 8%, and net profit margin expanded by 90 basis points. Revenue is mainly driven by the expansion of store size and the improvement of sales efficiency. It is estimated that store expansion is expected to turn positive in the second half of fiscal year 2024. The report also predicts that Neo's store closures will lead to a 2%-3% decline in full-year revenue; gross profit margins will rise to more than 42%, similar to the level during the COVID-19 epidemic.