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2026-05-05 11:21:24 M Stanley issued a research report stating that LI NING (02331.HK)'s business quality is improving, and its brand and product competitiveness are underestimated by the market. The broker expects the CAGR of sales and adjusted net profit for 2026 to 2028 to reach 7%. Although management has guided for high single-digit sales growth, the broker assumes only 6% sales growth in 2026 due to macro uncertainties. The report noted that LI NING's product mix has improved significantly compared with three to four years ago. The decline in basketball category sales narrowed markedly in 1Q26, while the badminton business, after achieving rapid growth in 2024 to 2025, is expected to maintain a CAGR of about 10% from 2025 to 2027. The emerging "Glory" series and outdoor product lines contributed a high single-digit percentage of sales in 2H25. As dedicated stores for these lines have only just begun to roll out, they are expected to support apparel sales growth. Considering the stronger performance of retail channels and "LI NING YOUNG", the broker raised its revenue forecasts for 2026 and 2027 by 1% each, lifted its 2026 gross margin forecast by 0.3 ppts, and lowered its operating expense ratio forecasts for 2026 and 2027 by 0.5 ppts and 0.3 ppts, respectively. As a result, its 2026 net profit forecast was increased by 1%. The TP is maintained at HKD26, with a rating of Overweight. (fc/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |