Zhitong Financial APP learned thatGoldman Sachs GroupAccording to a research report, maintainTopsports International Holdings Limited (06110)The "buy" rating lowered its target price by 14.3 per cent from HK $14 to HK $12 and its net profit forecast for the 2022-24 fiscal year by 9 per cent to 13 per cent, reflecting a weak sales recovery and some deleveraging pressure. The shares are down 31% from their mid-June peak, reflecting a slowing recovery and concerns about consumer sentiment, and the bank believes that the valuation of 13 times earnings for fiscal year 2022 is not high.

The bank said it expected to report results for the first half of 2022 (to the end of August) on the 28th of this month, with group sales expected to fall 3 per cent year-on-year to 15.352 billion yuan and net profit down 5 per cent. The bank believes that while sales trends remain volatile, sales of international brands in China are expected to improve gradually. Based on Topsports International Holdings Limited's strong executive ability, the bank believes that its profit margin should be controllable.