Daiwa released a research report stating that Li Ning's (02331) operational data for the last quarter of the previous year surpassed market concerns and slightly exceeded the full-year revenue guidance. The net profit margin is expected to approach 10%, with an anticipated turnaround in this year's performance. This is accompanied by increasing brand heat and the launch of new products and stores. Based on a forecasted 2026 price-to-earnings ratio of 18 times, Daiwa reiterated its target price of HK$24 and a "Buy" rating. Daiwa pointed out that during the analyst conference call, Li Ning's management indicated that 2025 revenue might slightly exceed the previous guidance of year-on-year flat growth, while the net profit margin would reach a "strong high-single-digit" figure (close to 10%). These statements largely align with Daiwa's forecasts and should prompt a modest upward revision to market consensus estimates. Daiwa believes Li Ning's recovery momentum is progressing and reaffirmed its status as the top pick among Chinese sportswear brands.
- Like
- Comment
- Favorite
Daiwa: Li Ning (02331) Recovery Momentum Progressing, Reiterates "Buy" Rating
Stock News01-16
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Like
Report
Login to post
No comments yet