Daiwa released a research report stating that Li Ning (02331) achieved mid-single-digit year-on-year growth in retail sales value (RSV) for the first quarter of this year. Compared to the fourth quarter of last year, retail sales value across all channels showed improvement, indicating that the recent market initiatives and product updates implemented by the company are yielding positive results. The report noted that enhanced execution at the product category level, along with initial positive consumer response, reinforces the view that Li Ning's revenue growth prospects remain intact. Expectations are for the product momentum to further expand throughout the year, with the company still having potential for upside. The firm reiterated its "Buy" rating and maintained a target price of HK$27.
Comments