Investment Rating - The report maintains a "Strong Buy" rating for Li Ning [4] Core Views - Since Q4 2025, the company has accelerated its layout in new products and channels, with positive market feedback on new running shoes featuring the latest super-bounce capsule technology [1][8] - The company has opened its first outdoor specialty store and a flagship store in Beijing, indicating a strategic expansion into new market segments [3] - With channel inventory returning to a healthy level, the company is expected to see a turnaround in operations in 2026, supported by aggressive marketing and major events [1][10] Inventory and Product Structure - As of Q3 2025, the channel inventory has decreased to a controllable level of 4-5 months, with 82% of inventory being new products under 6 months [2] - The product structure is healthy, with 77% of the company's inventory also consisting of new products under 6 months [2] Store Expansion - The total number of Li Ning stores reached 6,132 by the end of Q3 2025, with a net increase of 33 stores from the previous quarter [3] - The company has also increased its focus on outdoor and premium product lines, with new store openings catering to diverse consumer needs [3] Financial Performance and Projections - Total revenue for 2023 is projected at 27,696 million yuan, with a growth rate of 6%, while 2025 revenue is expected to remain flat at 28,744 million yuan [9][24] - Net profit for 2025 is estimated at 2,395 million yuan, reflecting a decline of 21% year-on-year, but is expected to recover in subsequent years [9][24] - The report anticipates a gradual recovery in revenue growth starting in 2026, driven by new product launches and enhanced marketing efforts [10] Shareholder Activity - The controlling shareholder has been actively increasing their stake in the company, which is seen as a positive signal for corporate governance and long-term investment value [10][11]

Investment Rating - The report assigns a "Buy" rating to the company, with a current price of HKD 19.00 and a fair value of HKD 20.22 [5]. Core Insights - The launch of the Honor Gold Standard product series and the new "Dragon Store" concept is expected to drive brand performance growth. The Dragon Store aims to create a space that integrates product experience, emotional resonance, and cultural exchange, while the Honor Gold Standard series focuses on multifunctional and versatile designs for various scenarios [9]. - The company anticipates that the synergy between the Honor Gold Standard series and the Dragon Store will contribute to revenue growth in 2026, targeting high-quality consumer segments with diverse needs [9]. - Profit forecasts indicate that the company's net profit attributable to shareholders is expected to be CNY 2.472 billion in 2025, CNY 2.634 billion in 2026, and CNY 2.828 billion in 2027, with a reference PE of 18 times for 2026 [9]. Financial Summary - Main revenue projections for the company are as follows: - 2023: CNY 27,598 million - 2024: CNY 28,676 million - 2025: CNY 28,986 million - 2026: CNY 30,325 million - 2027: CNY 32,871 million - The growth rates for main revenue are projected at 7.0% for 2023, 3.9% for 2024, 1.1% for 2025, 4.6% for 2026, and 8.4% for 2027 [4]. - The company's EBITDA is forecasted to be CNY 5,814 million in 2023, declining to CNY 5,631 million in 2025, and then increasing to CNY 6,736 million by 2027 [4]. - The net profit attributable to shareholders is projected to decline from CNY 3,187 million in 2023 to CNY 2,472 million in 2025, before recovering to CNY 2,828 million in 2027 [4]. - The report also highlights key financial ratios, including a projected ROE of 9.0% in 2025 and an EV/EBITDA ratio of 6.4 in 2025 [4].

Market Overview - The US CPI annual rate decline has led to a rise in US stocks, boosting risk market sentiment [1] - The Hang Seng Index opened higher and closed up 0.75%, with the Hang Seng China Enterprises Index and Hang Seng Tech Index rising by 0.68% and 1.12% respectively [1][2] Sector Performance - Major technology stocks saw collective gains, with Tencent up 1.49%, Kuaishou up 1.45%, and Meituan up 1.28% [4] - Pharmaceutical stocks were active, with WuXi AppTec and other related stocks rising [2] - Gaming stocks continued to rise, with MGM China leading with a 6.6% increase [2][5] - AI-driven demand boosted optical fiber and cable stocks, with Yangtze Optical Fiber rising 12% [2] - Automotive, wind power, education, photovoltaic, insurance, and Apple-related stocks also experienced gains [2] Notable Stock Movements - Xpeng Motors rose 7.65%, Horizon Robotics up 7.04%, and Li Auto up 3.81% [4][10] - Electronic cigarette stocks saw significant increases, with China Tobacco Hong Kong up 6.68% [5] - Chinese brokerage stocks rose, with China International Capital Corporation up over 4% [7] - Intelligent driving concept stocks surged, with Youjia Innovation up 31.22% [8] Weak Performers - Heavy machinery stocks faced declines, with China National Heavy Duty Truck Group down over 6% [13] - Gold and precious metal stocks were weak, with several companies experiencing declines of over 2% [16] - Oil stocks also fell, with China Petroleum & Chemical Corporation down 1.52% [15] Capital Flows - Southbound funds recorded a net purchase of HKD 3.371 billion, with net selling from Shanghai-Hong Kong Stock Connect and net buying from Shenzhen-Hong Kong Stock Connect [18] Market Outlook - CITIC Securities suggests that after a strong performance in September, Hong Kong stocks are undergoing a mid-term adjustment, with quality assets entering a high-value zone [18]

Core Viewpoint - Li Ning is accelerating its expansion into the outdoor market, opening its first independent outdoor store, COUNTERFLOW, in Beijing, which signifies a strategic shift to find new growth opportunities amid declining profits [1][2]. Group 1: Company Strategy and Performance - Li Ning's revenue for the first half of 2023 increased by 3.3% to 14.82 billion yuan, while net profit decreased by 11% to 1.737 billion yuan, indicating a need for new growth avenues [1][6]. - The establishment of the outdoor store represents a significant commitment to the outdoor segment, which is now treated as an independent business rather than a subcategory of the main brand [3][5]. - The outdoor product line includes shoes, apparel, and accessories, with a focus on fashionable outdoor wear targeting younger consumers [3][7]. Group 2: Market Context and Competition - The Chinese high-performance outdoor apparel market is projected to grow from 53.9 billion yuan in 2019 to 102.7 billion yuan by 2024, with a CAGR of 13.8%, making it one of the fastest-growing segments in functional apparel [5]. - Li Ning's entry into the outdoor market comes at a time when competition is intensifying, with established brands like Anta and emerging players like KAILAS and other international brands also vying for market share [8][9]. - The outdoor consumer base is diverse, and Li Ning aims to differentiate itself by focusing on the fashion aspect of outdoor products, which is seen as a significant opportunity [7][9]. Group 3: Future Outlook - The outdoor segment is viewed as a potential growth driver for Li Ning, especially as the company seeks to stabilize its cash flow amid increasing competition and market changes [6][8]. - Analysts suggest that while Li Ning has the potential to leverage its supply chain and brand recognition, the success of its outdoor strategy will depend on its ability to understand market dynamics and product development [9].

Company Overview - Li Ning opened its first global "Dragon Store" in Beijing's Sanlitun Taikoo Li on December 14, showcasing a new brand image linked to traditional culture and emphasizing its status as an official partner of the Chinese Olympic Committee [1] - The store features three themes: "Award Moment," "Competition Moment," and "Life Moment," which comprehensively interpret the brand culture and product professionalism for consumers [1] Product Launch - The new "Honor Gold Label" series integrates professional sports technology with daily commuting needs, offering stylish and minimalist designs for urban consumers [2] - This series is expected to enrich Li Ning's product matrix, extending beyond core sports functionality to attract a broader consumer base [2] - Li Ning has also introduced new running shoe midsole technology "Super Capsule" and updated versions of core running shoe products "Feidian" and "Chitu" [2] Performance and Forecast - With the new Olympic cycle beginning, Li Ning is experimenting with new product lines and store formats, which is likely to enhance its brand influence among consumers [2] - The EPS forecasts for 2025 and 2026 are maintained at 0.92 and 1.07 CNY respectively, with the current stock price corresponding to 18 and 16 times the 2025 and 2026 earnings [2] - Due to the launch of new store formats and products, the target price is raised by 4% to 23.61 HKD, implying a 29% upside potential compared to the current stock price [2]

Group 1 - The Hong Kong stock market has stabilized, maintaining a narrow range around the mid-axis during the morning session, with slight gains in consumer and technology sectors, while the internet and healthcare sectors experienced a downturn [1] - The consumer sector showed signs of recovery, with a slight increase of 0.32% by midday, driven by stocks such as Li Ning up 4.37%, Shenzhou International up 2.26%, and several others like Stone Pharmaceutical, Lao Pu Gold, WuXi Biologics, and Pop Mart all rising over 1% [3] - The technology sector also saw a minor increase of 0.14% by midday, with Meituan up 1.21%, while major players like JD Group, Alibaba, Tencent Holdings, and SMIC posted slight gains; however, BYD and NetEase faced minor declines [3] Group 2 - The healthcare sector had a lackluster performance, with Stone Pharmaceutical up 1.9% and WuXi Biologics up 1.68%, while other stocks like BeiGene, Innovent Biologics, and 3SBio saw slight increases; in contrast, companies like CanSino Biologics, China Biologic Products, JD Health, and Hansoh Pharmaceutical experienced minor declines [3]

Group 1 - The core activity is the recruitment for the HarmonyOS 6 document synchronization experience officer, which runs from December 17, 2025, to December 31, 2025 [22][26] - The recruitment is open to all users, with a preference for those who have upgraded their Huawei home storage to HarmonyOS 6 and are willing to provide feedback [26][31] - Participants must complete a questionnaire by December 31, 2025, and will be selected based on their responses [10][35] Group 2 - The new features of Huawei's home storage include seamless backup of photo galleries with devices running HarmonyOS NEXT and the ability to clean up duplicate files [19][42] - Huawei launched its first HarmonyOS home data center in 2022, offering storage options of 4TB, 16TB, and a no-disk version, with a maximum configuration supporting up to 40TB [42]

Core Insights - Li Ning has opened its first "Loong Store" in Beijing, themed "Dragon Glory Begins," marking a significant branding initiative that integrates Olympic elements into its retail strategy [1] Group 1: Store Opening and Branding - The "Loong Store" represents a new retail format for the Li Ning brand, emphasizing its connection to Chinese cultural symbols and sports [1] - The store opening coincides with the launch of the new "Honor Gold Standard" product series, which features the Chinese Olympic Committee's commercial emblem alongside the Li Ning brand logo [1] Group 2: Historical Context and Partnerships - Li Ning has a longstanding relationship with the Olympics, having incorporated the "CHINA Dragon" element into the design of the Chinese sports delegation's uniforms since the 2000 Sydney Olympics [1] - The company has been selected again as the official sportswear partner for the Chinese sports delegation for the 2025-2028 Olympic Games [1]

Core Insights - The Li-Ning brand launched its first "Loong Store" in Beijing's Sanlitun Taikoo Li on December 14, 2025, themed "Dragon Glory Begins" [2] - The "Loong Store" represents a new retail format developed by Li-Ning, integrating the "CHINA Dragon" element into its design, which has been a part of the brand's identity since the 2000 Sydney Olympics [2] - Li-Ning has regained the contract to provide sportswear for the Chinese sports delegation from 2025 to 2028, marking a significant partnership with the Chinese Olympic Committee [2] Product Launch - The new "Honor Gold Standard" product line was officially launched, featuring a combination of the Chinese Olympic Committee's commercial emblem and the Li-Ning brand logo, symbolizing Chinese sports glory and spirit [2]

放眼运动鞋服市场，一个有些奇妙但却早已存在的事实是——相当一部分消费者买来产品，并不只是为 了去运动。 而这样的趋势，仍在持续强化之中。 在这股浪潮之下，已有许多体育品牌成为进军生活方式圈的获益者，也有更多品牌开始在这一方向发力 进攻，尝试打入更多的场景。 对于深耕专业运动领域多年的体育品牌来说，这样的尝试，从消费需求洞察到产品设计、开发生产到推 向市场的全链路，不亚于一次小范围内的"创业"，过程往往并不轻松，但回报也往往颇为丰厚。 乒乓球著名球员马龙（左二）、刘诗雯（左三）出现在北京的龙店前。 拓圈，意味着打破惯性思维 12月14日傍晚的北京三里屯太古里，一家店铺门前人头攒动，人们围成一圈高举手机，对准了空地中央 一座金光闪闪的龙头装置。 不久后，马龙与刘诗雯两位国乒传奇在此亮相，引发了人群的尖叫欢呼。这一次，两位名将作为李宁品 牌代言人，现场见证了李宁全球首家龙店的开启，以及荣耀金标系列产品的正式发布。 何谓荣耀金标系列？简单而言，就是李宁品牌对于"突破赛场边界、深度融入日常生活"的尝试——更利 落有质感、更贴近都市生活的设计，更加凸显了满足多元场景需求的重要性。 而荣耀金标，是李宁品牌首次将中国奥委会商 ...