0601 GMT - Li Ning could face challenges to its 2026 guidance of high-single digit sales growth, say Citi Research's Xiaopo Wei and Vincent Young in a note. The retail environment in China has been generally weak, with 2Q retail sales slowing versus 1Q, according to the Chinese sportswear maker, they note. Li Ning's retail discounts have also widened on year since May to ensure healthy channel inventories amid the volatile retail environment, the analysts say. Still, the company maintains its high-single digit net profit margin forecast for 2026. Citi estimates this margin could be around 6.5%-9.4%. The bank retains its buy rating and HK$25.00 target price. Shares fall 3.3% to HK$16.03. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
June 18, 2026 02:01 ET (06:01 GMT)
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