CICC Maintains "Outperform" Rating on LI NING (02331), Raises Target Price to HK$23.61

Stock News12-17

CICC released a research report stating that as the new Olympic cycle begins, LI NING (02331) is gradually experimenting with new product series and store formats, which is expected to further enhance the brand's influence among consumers. The firm maintains its 2025/26 EPS forecasts at RMB 0.92/1.07, with the current stock price trading at 18/16x 2025/26 P/E. Due to the launch of new store formats and products, CICC is optimistic about LI NING's growth trend over the next 2-3 years, raising its target price by 4% to HK$23.61 (implying 24/20x 2025/26 P/E and 29% upside potential). The "Outperform Industry" rating is maintained.

**Key Updates**: On December 14, LI NING opened its first global "Dragon Store" in Beijing's Sanlitun Taikoo Li, alongside the launch of its new "Glory Gold Label" product series. CICC views this as a strategic move to strengthen the brand's Olympic product matrix.

**Dragon Store Showcases New Brand Image**: The Dragon Store integrates LI NING's iconic design elements with traditional culture while highlighting its role as the official partner of the Chinese Olympic Committee. The store presents brand culture and product expertise through three themes: "Podium Moment," "Competition Moment," and "Life Moment."

**Glory Gold Label Series Expands Product Matrix**: The Glory Gold Label series combines LI NING's professional sports technology with consumers' daily commuting needs, offering stylish and minimalist designs for urban lifestyles. CICC believes this series will diversify LI NING's product offerings, appealing to a broader consumer base beyond core functional sports products.

**Core Product Innovations**: Beyond new series, LI NING recently introduced its latest midsole technology "Super Bouncy Capsule" and updated versions of its flagship running shoes, "Feidian" and "Chitu." Athletes sponsored by LI NING have frequently stood on podiums at major events like the Tokyo Half Marathon and Valencia Marathon in 2025, demonstrating the brand's strong competitive edge. CICC expects continuous iterations in core functionality to solidify LI NING's leadership in professional sports.

**Risks**: Declining consumer preference, intensifying industry competition, and weaker-than-expected retail performance.

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