Profit in FY21 was in line with expectations, gradually recovered after the Xinjiang cotton incident.

Hong Kong |Consumer (Sportswear) | Update Report

Investment summary
Profits in FY21 are in line with expectations, and costs are under controlled
Topsports INT’L announced on May 24 the company’s annual results for the year ended February 28, 2021. The company’s annual revenue was approximately CNY 36.01 billion, an increase of 6.9% Yoy (2020: CNY 33.69 billion), which was slightly lower than our previous expectation (previous expectation: CNY 37.37 billion), it was approximately 3.6% lower. The
company’s cost control during the period was adequate, and its OPM improved by 1.3 pcts Yoy, offsetting the slower revenue growth. The adjusted net profit for the year was CNY 2.77 billion, an increase of 16.4%, which was in line with our expectations (previously expected: CNY: 27.67) Billion). The company proposes to distribute 12 cents per share for the final period. Together with the interim dividend, the dividend payout ratio is approximately 54% (excluding special dividends). The annual dividend (including one special dividend) totals 64 cents per share.