Topsports: Fair Value Cut by 3%, Yet Shares Remain Undervalued, With Attractive 7% Dividend Yield

We lowered Topsports’ fair value estimate to HKD 7.50 per share from HKD 7.70, reflecting a cautious sales forecast. With the macroeconomic climate prompting consumers to opt for less expensive alternatives, we anticipate slower growth from Nike and Adidas, two of Topsports' key brands. Despite this adjustment, we still view Topsports' shares as undervalued, trading at a modest 12 times forward earnings and offering a mid-single-digit dividend yield.