Citi said in a report that Nike, Inc. (NKE.US) will terminate most of its online distribution business with Chinese retailers starting from January 2027, in line with the scenario forecast previously proposed by the broker. The broker believes Nike's strategic shift toward online DTC (direct-to-consumer) may lead to future market share losses in China and negatively affect TOPSPORTS (06110.HK) -0.440 (-23.037%) Short selling $22.89M; Ratio 12.564% , its retail partner in China.

Given the potential negative impact from the loss of Nike's online business, Citi lowered its sales forecasts for TOPSPORTS for FY2027 and FY2028 by 20% and 27%, respectively, and correspondingly reduced its net profit forecasts by 23% and 25%. Meanwhile, the broker cut its target P/E multiple from 16x to 11x to reflect weaker earnings visibility and growth prospects, and shifted the valuation base year to calendar year 2027.

Citi sharply lowered the TP for TOPSPORTS (06110.HK) -0.440 (-23.037%) Short selling $22.89M; Ratio 12.564% from HKD3.8 to HKD2.12, while maintaining the Buy rating, mainly supported by attractive valuation and a high dividend yield of over 10%. The broker expects a recovery in China's retail sales in FY2027, which will partially offset the business decline resulting from Nike terminating the online distribution partnership.(ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-22 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)