Da Mo: Raised the target price of Li Ning (2331.HK) to HK$111

Damo issued a report to improve its forecasts for sales, earnings and earnings per share after Li Ning (2331.hk) completed the allotment. The target price was raised from HK$107 to HK$111 with a rating of "Overweight".

Damo will increase Li Ning's sales forecast for 2021/2022/2023 by 1%/5%/8% respectively, and the latest sales growth forecast will be 50%/22%/21%. In addition to the rapid expansion of China's Li Ning and Li Ning Young, new businesses in women's sportswear, sports, LN-1990 and other categories (table tennis and badminton) should boost revenue growth and continue to be bullish on its strong market share growth.

The bank has raised its net profit forecast for 2021/2022/2023 by 4%/9%/8% respectively, and the current profit growth forecast is 120%/33%/24% respectively. In contrast, the earnings per share forecast for 2021 to 2023 is only about 4 percent higher, largely reflecting post-rights dilution factors.

This article originated from Grand Gateway