DBS Vickers has downgraded China Sports International (FQ8.SG) to “hold” from “buy” on concerns over sportswear retailer’s prospects.

The broker has cut its target price to $0.18 from $0.30 after lowering FY10–11 earnings forecasts by 25–22% to assume reduced revenue, margins as “we believe competition in the sportswear market in China will remain quite intensive after a few more players got their equity funding from Hong Kong last year.”

Says net cash position of $0.22/share as at end-December may fall to $0.15/share as company preparing for capex to ramp up its franchise in China for products of world soccer body Fifa.

Shares last gained 3.2% to $0.16.

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