Daiwa lifted its target price for Topsports International (06110) to HK$12 from HK$10.5 and maintained its "buy" rating.
The research house said prior to COVID-19, Topsports made strides in digitalisation,
particularly in inventory management (procurement, stock sharing and replenishment systems) and digital connections (store-level mini-programmes and social community-based marketing), to facilitate consumer engagement. During the pandemic, its digital-driven sales mix increased to 40-50% during the peak of COVID-19.
It trims the FY21-22E revenue by 1-5%, but its EPS forecasts are largely unchanged on lower staff and rental costs.