HK$3.72: That's What Analysts Think Topsports International Holdings Limited (HKG:6110) Is Worth After Its Latest Results

Last week saw the newest annual earnings release from Topsports International Holdings Limited (HKG:6110), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of CN¥26b and statutory earnings per share of CN¥0.20 both in line with analyst estimates, showing that Topsports International Holdings is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Topsports International Holdings after the latest results.

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Taking into account the latest results, Topsports International Holdings' 17 analysts currently expect revenues in 2027 to be CN¥25.3b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CN¥0.20, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥26.0b and earnings per share (EPS) of CN¥0.23 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

See our latest analysis for Topsports International Holdings

The consensus price target fell 7.6% to HK$3.72, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Topsports International Holdings analyst has a price target of HK$5.01 per share, while the most pessimistic values it at HK$2.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2027 compared to the historical decline of 6.5% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.3% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Topsports International Holdings to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Topsports International Holdings. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Topsports International Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Topsports International Holdings going out to 2029, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Topsports International Holdings you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.