Topsports International Holdings Ltd
06110: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$9.60 | Zzysxv | Zxxwwnkn |
Topsports: Initiating Coverage With Narrow Moat Rating and HKD 7.70 Fair Value; Shares Undervalued
We initiate coverage of Topsports, the largest distributor for Nike and Adidas in China, with a narrow moat rating, Exemplary Morningstar Capital Allocation Rating, HKD 7.70 fair value estimate, and 4-star rating. Our fair value estimate implies a price/earnings ratio of 19 times, a free cash flow yield of 7%, and dividend yield of 6.6% for fiscal 2024 (ending February).