Morgan Stanley issued a report stating that Li Ning's (02331. HK) sales growth has driven profit improvement, and its net profit margin is expected to reach 18% by 2023. The company's single-brand strategy is the main factor of its strong operating leverage. Under the high sales base, it is believed that profits will still improve from 2022 to 2023, recording a 30% growth. It is given an overweight rating and the target price has been raised from 71 yuan to 99 Hong Kong dollars. The bank estimates that Li Ning's revenue and retail sales will increase by 71% and 80% respectively in the first half of the year, and its gross profit in the first half is expected to increase by 3.2 percentage points to 52.7%, due to lower discounts and incentives given to distributors....
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