Topsports Earnings: Nike Outperformed Addias; Management Maintains Outlook

We maintain TopSports' fair value estimate following its report of in-line fiscal third-quarter sales (ending Nov. 30). Although management refrained from issuing specific numerical forecasts, it still expects the company's sales growth to align with the overall trend of the sportswear industry for the fiscal year. We fine-tune our near-term forecasts and continue to view TopSports shares as undervalued, trading at a 20% discount to our fair value estimate of HKD 7.70.