Xiao Mo: Gave Li Ning (02331) an "overweight" rating the target price increased by 11.7% to HK$105

Zhitong Finance APP learned that Xiaomo released a research report saying that Li Ning (02331) was given an "overweight" rating to maintain the 2012-23 profit forecast, which was about 1% to 2% lower than market expectations, and believed that Li Ning's brand value would be further released, coupled with the continuous improvement of efficiency, it was confident in long-term structural growth, and Li Ning was the first choice for China's sportswear industry, with the target price rising from HK$94 to HK$105.

According to the report, the company's retail sales dematerialization rate in the third quarter increased to about 40%, exceeding market expectations by 30% to 35%, while discounts, inventory, account period structure and sell-out ratios all improved year-on-year, which is encouraging.

The bank pointed out that Li Ning achieved positive growth during the National Day Golden Week in October, the sales trend further accelerated, and the sales trend has been stable since October, and it is believed that Li Ning is expected to achieve the annual growth guidelines, with sales growth reaching more than 40% and net profit margin reaching 16% to 17.5%.