To The Moon

LI NING (02331) surged more than 4% again. As of the time of writing, the stock was up 3.82%, trading at HKD 21.18, with a turnover of HKD 338 million. The company announced that in the fourth quarter of 2025, the retail sales of LI NING's points of sale (excluding LI NING YOUNG) across the entire platform recorded a low single-digit year-on-year decline. Guosen Securities released a research report stating that LI NING's core product sales declined by a low single-digit figure in the fourth quarter, a sequential narrowing compared to the third quarter, primarily benefiting from a reduced decline in offline channels; discounts deepened by a low single-digit figure year-on-year and sequentially, while the inventory-to-sales ratio improved to 4-5 months. Morgan Stanley published a research note indicating that LI NING expects to achieve moderate revenue growth in 2025, with the net profit margin projected to stabilize at the high end of the high single-digit range, suggesting that the market's consensus expectations for its net profit last year are likely to be revised upwards. Puyin International believes that, given the current strong market sentiment, once LI NING's brand strength recovers and a clearer trend of improving sales emerges, its stock price has the potential to gain significant upward momentum.