Investment Rating - The report recommends "Buy" for leading sports brands like Anta Sports and Li Ning, indicating strong operational resilience and growth potential in a challenging retail environment [5][27]. Core Insights - The sports industry demonstrated strong operational resilience in 2024, with major companies like Anta Sports, Li Ning, Xtep International, and 361 Degrees showing varied revenue growth rates of +13.58%, +3.90%, -5.36%, and +19.59% respectively [1][7]. - The report anticipates continued stable growth for leading sports brands in 2025, with projections for Anta's main brand to maintain high single-digit growth and FILA to achieve mid-single-digit growth [13][14]. Summary by Sections Performance Review - Anta Sports and FILA maintained steady operations, with revenue reaching 70.826 billion CNY, while 361 Degrees capitalized on lower-tier markets, achieving a revenue increase of 19.59% to 10.074 billion CNY [1][10]. - Li Ning's revenue remained stable, with a focus on e-commerce and product diversification, leading to a 10.3% increase in online sales [9]. Marketing and Inventory Management - Anta Sports increased its sales expense ratio to 36.21%, reflecting higher investments in new product promotions and channel expansion [2][16]. - Inventory turnover days improved for Xtep International, decreasing by 10 days to 79 days, while 361 Degrees saw an increase in turnover days due to strategic inventory buildup for e-commerce [2][17]. Manufacturing Sector - Major manufacturers like Wah Lee Group and Shenzhou International reported revenue growth of 19.35% and 14.79% respectively, driven by increased demand and efficient operations [3][22]. - The overall profitability of the manufacturing sector improved, with Wah Lee's net profit margin at 15.36% and Shenzhou's gross margin increasing to 28.10% [20][21]. Investment Recommendations - The report suggests that leading sports brands like Anta Sports and Li Ning are well-positioned to outperform the industry due to their operational strengths and market strategies [5][27]. - For the manufacturing sector, Wah Lee Group is recommended as a strong player, with potential for increased market share amid industry consolidation due to external pressures [5][27].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Insights - The company is expected to achieve a revenue growth of 3.9% in 2024, driven by professional categories such as running and fitness [7]. - The gross margin is projected to improve to 49.4%, while net profit is expected to decline by 5.5% to 3.01 billion [7]. - The company is focusing on optimizing channel structures and enhancing operational efficiency to expand its influence in the professional sports market [7]. Financial Data and Forecast - Revenue (in million) for 2023 is 27,598.49, projected to be 28,675.64 in 2024, with a year-on-year growth of 3.9% [6]. - Net profit (in million) for 2023 is 3,186.91, expected to decrease to 3,012.92 in 2024, reflecting a decline of 5.46% [6]. - The diluted EPS for 2024 is projected at 1.17, with a gross margin of 49.37% [6][10]. - The company anticipates a net profit of 27.3 billion and 28.6 billion for 2025 and 2026, respectively, with a PE valuation range of 13-15X for 2025 [7]. Market Performance - The company's stock price closed at 15.78 HKD, with a 52-week price range of 12.56-24.60 HKD [2]. - The total market capitalization is 40,788 million HKD [2]. - The company has faced challenges in offline traffic, with a reported decline in daily customer flow by 10-20% [7]. Revenue Breakdown - The revenue from the Li Ning brand is expected to reach 26.82 billion, with a year-on-year growth of 3.4% [7]. - Revenue from footwear, apparel, and equipment is projected at 14.3 billion, 12.05 billion, and 2.32 billion, respectively, with footwear showing a growth of 6.8% [7]. Inventory and Efficiency - The company maintains a healthy inventory structure with a turnover period of 64 days and an inventory cost increase of 4.2% year-on-year [7]. - The overall inventory turnover ratio is 4.0 months, indicating a stable inventory management strategy [7]. Valuation and Estimates - The estimated reasonable value range for the stock is between 14.92 and 17.22 HKD per share based on the projected earnings [7]. - The company is expected to maintain a dividend yield of approximately 3.71% in 2024 [10].

Macro Strategy - The March PMI data indicates three characteristics of economic recovery: the pre-positioning of work due to the Spring Festival, better recovery of manufacturing demand compared to supply, and weak consumer service consumption [1][30]. - The manufacturing PMI for March is 50.5%, showing a slight increase of 0.3 percentage points from the previous month, while the service PMI is at 50.3%, also up by 0.3 percentage points [1][30]. - The new order index for manufacturing increased by 0.7 points to 51.8%, indicating stronger demand recovery compared to supply [1][30]. Industry Insights - The report highlights the need for macro policies to be adjusted in response to potential economic pressures in the second quarter, particularly in exports and real estate [1][30]. - The construction industry PMI rose to 53.4%, reflecting seasonal recovery, but remains at a historically low level for this time of year [1][30]. - The report emphasizes the importance of monitoring the impact of tariff increases on exports and the ongoing trends in the real estate market [1][30]. Company Analysis - The report provides insights into various companies, including their performance forecasts and investment ratings, such as the significant growth in sales for Lao Pu Gold and the strategic partnerships for Jianghuai Automobile [9][15]. - Companies like Yubiquitous and Geli Pharmaceutical are noted for their innovative product developments and market potential, with investment ratings maintained at "buy" [11][12]. - Shanghai Pharmaceuticals reported a revenue of 275.25 billion yuan, reflecting a 5.75% year-on-year increase, with a net profit of 4.553 billion yuan, up 20.82% [14]. Financial Performance - The report indicates that the overall financial performance of companies is under scrutiny, with adjustments made to profit forecasts for several firms based on market conditions and operational challenges [15][19]. - Companies such as China Communications Construction Company and Orient Securities are highlighted for their revenue growth and strategic adjustments in response to market dynamics [22][23]. - The report also notes the importance of cash flow management and cost control in maintaining profitability amid fluctuating market conditions [22][24].

Group 1: Investment and Financing - LYS Beauty has completed an eight-figure Series A financing round led by Encore Consumer Capital, with funds aimed at brand expansion, marketing, and inventory replenishment [1] - Koparo raised 1.45 crore INR (approximately 1.7 million USD) in pre-Series A funding, with existing investors leading the round, indicating strong support for its growth in natural cleaning products [2] Group 2: Brand Developments - Dsquared2 has decided to terminate its licensing agreement with Staff International SpA ahead of schedule, allowing the founders to regain full control over the brand [3] - Boohoo Group announced plans to rename itself as Debenhams Group, despite not receiving the necessary shareholder approval, aiming to better position itself in the market [5] Group 3: Financial Performance - Li Ning reported a revenue of 28.676 billion CNY for the year ending December 31, 2024, with a 3.9% year-on-year growth and a gross margin of 49.4% [8] - Estée Lauder's UK sales decreased by 3% to 526.2 million GBP, with a net loss of 37.9 million GBP, attributed to economic uncertainties affecting consumer spending [10][11] Group 4: Corporate Transactions - Kering has completed the sale of three real estate assets in Paris for a total of 837 million EUR, retaining a 40% stake in the properties, which will improve its cash flow [6] Group 5: Leadership Changes - Decathlon appointed Javier López as the new CEO, who has extensive experience within the company and has held various significant positions [14] - LVMH promoted Jean-Christophe Babin to CEO of the group's watch division, bringing his extensive management experience to the role [16]

Investment Rating - The report maintains a "Buy" rating for Li Ning (02331.HK) [1] Core Views - The company reported a revenue of 28.676 billion yuan for 2024, representing a year-on-year increase of 3.9%, while the net profit attributable to shareholders was 3.013 billion yuan, down 5.5% year-on-year, primarily due to a 333 million yuan impairment on investment properties [8] - Li Ning is actively optimizing its channel structure by closing unprofitable stores and accelerating its expansion into emerging markets, with a total of 1,297 direct-operated stores as of the end of 2024, a decrease of 201 stores year-on-year [8] - The company has solidified its professional sports image, with the running category showing significant growth, and has become a partner of the Chinese Olympic Committee for the period of 2025-2028, which is expected to enhance brand value and market influence [8] Financial Summary - Revenue projections for 2024-2027 are as follows: 28.676 billion yuan in 2024, 28.682 billion yuan in 2025, 30.043 billion yuan in 2026, and 31.590 billion yuan in 2027 [1][9] - The net profit attributable to shareholders is forecasted to decline to 2.454 billion yuan in 2025, followed by a recovery to 2.705 billion yuan in 2026 and 3.021 billion yuan in 2027 [1][9] - The report indicates a projected P/E ratio of 15 for 2025, 14 for 2026, and 13 for 2027, reflecting a long-term positive outlook due to investments in top-tier event resources [8][9]

Core Insights - In 2024, Li Ning reported a revenue increase of 3.9% to 28.676 billion yuan, while net profit attributable to shareholders decreased by 5.46% to 3.013 billion yuan, indicating a relatively stable performance compared to competitors like Anta Sports and Xtep International [1][2] - The company's management emphasized a strategy of "steady operation, solid foundation, and pragmatic development," aiming to balance growth and profitability [1][2][5] Financial Performance - Li Ning's revenue for 2024 reached 28.676 billion yuan, a 3.9% year-on-year increase, while net profit fell by 5.46%, a slight improvement from the previous year's decline of 21.58% [2] - The gross profit margin improved by 1 percentage point to 49.4%, although it remains lower than Anta Sports but higher than Xtep International and 361 Degrees [2][4] Business Strategy - The company is focusing on the running category, which saw a 21% growth in 2024, building on a 40% increase in 2023, while intentionally reducing investment in the basketball category due to a 21% decline in sales [3][5] - Li Ning's online sales grew by 10.27%, while direct operating income decreased by 0.35% due to store closures in underperforming locations [3][4] Inventory and Channel Management - Li Ning's inventory management has improved, with a stock turnover period of 64 days, significantly better than competitors [4] - The total number of sales points decreased to 7,585, with a net reduction of 83 stores, while the number of Li Ning YOUNG stores increased [4] Investment in Sports Resources - The company is increasing investment in sports resources, including a partnership with the Chinese Olympic Committee, to enhance brand recognition and product competitiveness [5][6] - Research and development expenditure rose to 676 million yuan, accounting for 2.4% of total revenue, reflecting a commitment to innovation [6] Future Outlook - Li Ning aims to maintain stable revenue and high single-digit net profit margins in 2025, with continued investment in brand building and core categories [6]

Investment Rating - The report maintains a "Buy" rating for key companies in the sports footwear and apparel sector, specifically recommending Anta Sports, Li Ning, Xtep International, and 361 Degrees [7]. Core Insights - The sports footwear and apparel sector is expected to achieve steady growth in 2024, with a focus on leading companies' long-term investment value [1]. - In 2024, the combined revenue of four Hong Kong-listed sports footwear and apparel companies grew by 9% year-on-year to 123.2 billion yuan, while net profit attributable to shareholders increased by 36.21% to 21 billion yuan [1][11]. - The sector's stock prices have shown volatility but are expected to rise as consumer confidence improves and national policies stimulate demand [1][39]. Summary by Sections 2024 Review - The sports footwear and apparel sector demonstrated stable growth in terminal sales and maintained healthy inventory levels [1][11]. - The combined revenue of key companies in the sector showed consistent growth across the first and second halves of 2024, with a year-on-year increase of 9% [11]. - The inventory turnover days for major companies are healthy, averaging between 4-5 months, setting a solid foundation for growth in 2025 [1][24]. 2025 Outlook - The demand resilience in the sector is expected to continue, with a forecast for steady growth driven by recovering consumer confidence and an increasing preference for functional apparel [2][44]. - The report anticipates a trend of lower growth in the first quarter of 2025, followed by an increase in subsequent quarters, contingent on overall consumer sentiment improving [2][44]. Operational Trends - Companies are focusing on enhancing product quality, optimizing channel operations, and increasing marketing efforts to capture consumer attention [3]. - Key product categories such as running and outdoor gear are driving growth, with notable increases in sales for brands like Li Ning and Saucony [2][3]. - The report highlights the importance of channel optimization and marketing investments, with companies like 361 Degrees sponsoring major events to boost brand visibility [3][44]. Key Company Analysis and Investment Recommendations - Anta Sports is highlighted as a top pick due to its strong performance and expected revenue growth of 10.5% in 2025, with a projected net profit of 13% growth [45][46]. - Li Ning is expected to maintain stable revenue but face a decline in net profit due to prior asset impairments [45]. - Xtep International is projected to grow revenue by 7% and net profit by 10.3% in 2025, benefiting from its focus on professional sports segments [45][46]. - 361 Degrees is anticipated to achieve a 14% revenue increase and a 14.2% rise in net profit, supported by its broad market positioning [45][46].

Investment Rating - The report maintains a "Buy-A" rating for the company [1][8] Core Views - The company reported a revenue of 28.676 billion yuan for 2024, a year-on-year increase of 3.9%, while the net profit attributable to shareholders was 3.013 billion yuan, a decrease of 5.5% [1][3] - The board proposed a final dividend of 20.73 cents per share, with a payout ratio of 50% for the year [1] - The overall retail sales remained stable, with online channels showing low double-digit growth while offline channels experienced a slight decline [3][4] Revenue and Profit Analysis - In 2024, revenue from footwear, apparel, accessories, and equipment was 14.3 billion, 12.05 billion, 2.325 billion, and a year-on-year growth of 6.8%, -2.9%, and 29.3% respectively [4] - The retail sales for running, fitness, basketball, and sports lifestyle categories accounted for 28%, 15%, 21%, and 33% of total sales, with year-on-year growth rates of 25%, 6%, -21%, and -6% respectively [4] - The company’s gross margin improved to 49.4%, up 1.0 percentage points year-on-year, primarily due to better margins in the e-commerce channel [5][7] Channel Performance - Direct sales revenue decreased by 0.3% to 6.883 billion yuan, with the number of direct stores declining by 13.4% to 1,297 [5] - Wholesale revenue increased by 2.6% to 12.957 billion yuan, with wholesale stores growing by 1.6% to 4,820 [5] - E-commerce revenue grew by 10.3% to 8.305 billion yuan, with significant improvements in customer traffic and conversion rates [5][8] Future Outlook - The company is expected to continue optimizing its channel structure and enhancing customer experience, which will support steady business growth [8] - Projected revenues for 2025-2027 are 29.093 billion, 30.177 billion, and 31.517 billion yuan, with year-on-year growth rates of 1.5%, 3.7%, and 4.4% respectively [8][10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is increasing its investment in sports resources, deepening brand professionalism [5] - The company has shown stable performance despite external environmental disturbances, with a revenue of 28.676 billion RMB in 2024, a year-on-year increase of 3.9% [7] - The e-commerce channel's revenue contribution is increasing, accounting for 31% of total revenue in 2024, up 2 percentage points from 2023 [7] - The running product category has seen rapid growth, with retail sales increasing by 25% in 2024 [7] - The company is expected to achieve net profits of 2.656 billion RMB, 2.960 billion RMB, and 3.264 billion RMB for the years 2025 to 2027 respectively [7] Financial Summary - The company’s revenue forecast for 2025 is 29.164 billion RMB, with a growth rate of 1.7% [8] - The gross profit for 2025 is projected to be 13.795 billion RMB, representing 47.3% of sales revenue [8] - The net profit margin is expected to be 9.1% in 2025, with a net profit of 2.656 billion RMB [8] - The company’s total assets are projected to reach 38.366 billion RMB by 2025, with a debt ratio of 25.04% [8]

Core Viewpoint - Li Ning Company reported a steady revenue growth of 3.9% for the fiscal year ending December 31, 2024, reaching 28.68 billion RMB, with a net profit of 3.01 billion RMB, reflecting a positive outlook on the future of the sports goods sector in China [1] Financial Performance - The company achieved a gross profit of 14.16 billion RMB, with a gross margin increase of 1 percentage point to 49.4% and a net profit margin of 10.5% [2] - Operating cash flow generated a net amount of 5.27 billion RMB, up 12.4% year-on-year, with total cash and cash equivalents increasing by 2.06 billion RMB to 7.5 billion RMB [2] Strategic Focus - Li Ning's performance is supported by a "single brand" strategy and long-term investment in technology, enhancing its core competitiveness through collaboration with top athletes [2][4] - The company emphasizes a "single brand, multi-category, multi-channel" strategy, focusing on professional sports attributes and technological innovation [2] Product Development - The footwear segment contributed 50% of total revenue, with sales exceeding 14.3 billion RMB, and core running shoe IP sales surpassing 10.6 million pairs [4][6] - Li Ning invested over 3.5 billion RMB in R&D from 2015 to 2024, with a 9.3% increase in R&D spending in 2024, outpacing revenue growth [4] Marketing Initiatives - In 2024, Li Ning launched the "In My Name" marketing campaign, collaborating with national gold medal athletes to enhance brand connection with sports enthusiasts [3] Market Expansion - The company is expanding into new categories such as outdoor sports, tennis, and pickleball, with positive market feedback in 2024 [7] - Li Ning's running category saw a retail sales growth of 25%, with significant sales increases in its core running shoe series [6] Channel Management - Li Ning optimized its channel layout and inventory management, maintaining a stock turnover period of 64 days, which is better than the industry average [10] - The company closed inefficient stores while upgrading quality outlets, increasing its sales points to 7,585 by the end of 2024 [8] E-commerce Strategy - The company capitalized on the e-commerce recovery, achieving a 10% to 20% growth in direct e-commerce sales [9]