Citi has released a research report maintaining a "Buy" rating on LI NING (02331) with a target price of HK$18.1.
The bank noted that after factoring in the double-digit year-on-year growth of LI NING Young, the company's overall brand retail sales in the third quarter were roughly flat compared to the same period last year.
The bank stated that the company plans to discuss the distribution of a special dividend, which comes as a positive surprise. In addition, the company's retail sales in both August and September returned to positive year-on-year growth, and Citi expects the discount level to narrow further in the fourth quarter.
Management has maintained its full-year guidance, expecting full-year sales to achieve low single-digit year-on-year growth, with net profit margin ranging from mid-to-high single digits.
Comments