0248 GMT - Li Ning's earnings are likely bottoming out, despite posting a soft 4Q retail performance, say DBS Group Research analysts in commentary. The Chinese sportswear company's 4Q sales were likely pressured by aggressive market discounting and weak consumer sentiment, they say. They expect the company to be more disciplined on store expansion and focus on cost efficiencies in 2026. Li Ning's full-year revenue is likely to be flat to slightly positive, while its net profit margin could face some pressure from higher advertising and promotion spending on Olympics-related marketing, they add. Potential catalysts include positive consumer reception to recent product launches and its outdoor brand gaining traction, they add. DBS retains its buy rating and HK$23.20 share price. Shares are 1.6% lower at HK$19.28.(megan.cheah@wsj.com)
(END) Dow Jones Newswires
January 12, 2026 21:48 ET (02:48 GMT)
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