Core Viewpoint - Nomura has downgraded the target price for Li Ning by 7% from HKD 17.4 to HKD 16.2 while maintaining a "Neutral" rating due to macroeconomic uncertainties and intensified competition in the sportswear industry [1] Group 1: Company Performance - Li Ning has maintained its full-year performance guidance despite the downgrade in target price [1] - The company's retail sales in the first quarter recorded low single-digit growth year-on-year, which is generally in line with market expectations [1] - Sales performance in January and February exceeded expectations, but the sales atmosphere weakened in March and April, particularly in offline channels [1] Group 2: Industry Context - The sportswear industry is facing increased competition, which is expected to negatively impact Li Ning's sales and profitability in the second and third quarters [1] - Macroeconomic uncertainties are contributing to the challenging environment for the company and the industry as a whole [1]

Investment Rating - The investment rating for Li Ning is "Buy" (maintained) [2][6] Core Views - The report indicates that Li Ning's Q1 performance met expectations, with low discount sales improving and strong growth in running and e-commerce segments. The company focuses on professional sports, increasing resource allocation and expanding new products to cater to niche markets and emerging sectors [6][7][9] Financial Summary and Valuation Metrics - For the fiscal year 2023, Li Ning reported a revenue of 27,598 million HKD, with a year-on-year growth of 7.0%. The projected revenue for 2025 is 28,742 million HKD, reflecting a minimal growth of 0.2% [10] - The net profit for 2023 was 3,187 million HKD, showing a decline of 21.6% year-on-year. The estimated net profit for 2025 is 2,459 million HKD, indicating a further decline of 18.4% [10] - The gross margin for 2023 was 48.4%, with a projected gross margin of 49.8% for 2025. The net margin is expected to decrease from 11.5% in 2023 to 8.6% in 2025 [10] - The price-to-earnings (P/E) ratio for 2025 is projected at 14.6, with a price-to-book (P/B) ratio of 1.4 [10] Operational Insights - In Q1 2025, Li Ning's total store count was 6,088, a decrease of 2% year-on-year. The company plans to close 10-20 direct stores and open 30-40 wholesale stores throughout the year [8] - The report highlights that the running category saw over 20% growth, driven by sponsorship of events and strong performance of new running shoe products [7][9]

Investment Rating - The report maintains a "Buy" rating for Li Ning [5][3] Core Views - Li Ning's adult revenue showed steady growth in Q1 2025, with e-commerce performance being particularly strong, while overall performance met expectations [1] - The company is focusing on optimizing its children's clothing product structure and enhancing brand promotion, which is expected to drive steady growth in the children's clothing segment [2] - The company is managing inventory effectively, with an estimated inventory-to-sales ratio of around 5, indicating a healthy and controllable level [2] - For 2025, the company expects revenue to remain flat year-on-year, while net profit attributable to the parent company is projected to decline by 17.5% [2] Financial Summary - Revenue projections for 2025-2027 are estimated at 24.86 billion, 26.66 billion, and 28.81 billion respectively, with a PE ratio of 15 times for 2025 [3] - Financial indicators for 2025 include: - Revenue: 28,919 million - Net profit: 2,486 million, a decline of 17.5% year-on-year - EPS: 0.96 - ROE: 9.1% [4][11] - The company’s revenue growth rates are projected at 0.8% for 2025, 6.5% for 2026, and 5.9% for 2027 [4][11]

李宁：一季度销售点（不包括李宁YOUNG）于整个平台之零售流水按年录得低单位数增长。 ...

Core Viewpoint - Li Ning announced that its retail sales (excluding Li Ning YOUNG) recorded low single-digit growth year-on-year in the first quarter across all platforms [1] Group 1 - The company reported a low single-digit growth in retail sales for the first quarter [1]

Group 1 - The 2025 Aerospace Culture and Art Forum was held in Shanghai as part of the 10th "China Aerospace Day" activities, featuring discussions on the synergy between sports and aerospace spirit [2][3] - Athletes and entrepreneurs, including Li Ning and Olympic diving champion Quan Hongchan, emphasized the shared pursuit of perfection in both aerospace and sports [2][3] - Li Ning expressed pride in China's aerospace achievements, highlighting the dedication and exploration behind these accomplishments [2] Group 2 - Quan Hongchan drew parallels between diving and aerospace, likening each dive to a rocket launch aimed at achieving a perfect entry [3] - Li Ning highlighted the importance of integrating aerospace technology into sports and daily life, indicating a potential collaboration to create innovative sportswear [3][6] - The establishment of an Aerospace Technology Innovation Application Laboratory aims to apply advanced aerospace technology to professional sports equipment, promoting innovation and cultural dissemination [6] Group 3 - The "Aerospace Quick-Dry" and "Aerospace Sun Protection" technologies were showcased at the forum, demonstrating successful technology transfer from aerospace to sports apparel [6] - The "Aerospace Quick-Dry" technology utilizes design inspired by rocket launch systems to enhance moisture management in fabrics [6] - The "Aerospace Sun Protection" technology features a nano-coating inspired by spacesuits, achieving a UV protection factor (UPF) of 950 and a UV blockage rate of 99.9% [6]

Core Viewpoint - The article highlights Li Ning's efforts in promoting sustainable practices within the sportswear industry, showcasing a comprehensive approach to environmental responsibility through innovative materials and production processes [2][4][10]. Group 1: Environmental Initiatives - Li Ning is presenting its "full-chain" environmental products, including bio-based yarn shoes, waterless dyeing, and recycled plastic uniforms, aiming to create a clear green path from raw materials to finished products [2][3]. - The company has developed a complete lifecycle of green products, utilizing materials like castor oil-based bio-yarn and recycled plastic bottles, indicating a shift from isolated attempts to a systematic approach [3][4]. - Li Ning's commitment to sustainability is reflected in its collaboration with research institutions to develop fully biodegradable shoes, demonstrating a long-term vision for eco-friendly products [3][4]. Group 2: Market Position and Challenges - The global sportswear market is increasingly focused on sustainability, with brands like Nike and Adidas leading the way, while Chinese brands like Li Ning are still in the early stages of this transition [2][3]. - Li Ning's Vice President, Song Chuntao, emphasizes that environmental materials do not compromise performance, citing the elasticity and durability of their bio-yarn used in high-performance running shoes [6][10]. - The company aims to balance the rising costs of sustainable materials with product performance, asserting that they will not raise prices solely based on environmental claims [7][10]. Group 3: Consumer Trends and Corporate Responsibility - Consumer attitudes are shifting towards sustainability, with 46% of consumers willing to pay a premium for sustainable products, indicating a growing market for eco-friendly options [10]. - Li Ning has integrated ESG (Environmental, Social, and Governance) considerations into its corporate strategy, establishing an ESG management committee to oversee sustainability efforts [10]. - The company recognizes that sustainable development is not just a choice but a necessary challenge for the industry, with leading companies playing a crucial role in advancing these initiatives [10].

（李宁门店环保陈列区域） 华夏时报（www.chinatimes.net.cn）记者 黄兴利 北京报道 在全球可持续发展浪潮下，ESG（环境、社会与治理）理念已从概念层面深度嵌入企业战略，成为衡量企业长期 价值的核心指标。对于服装产业这一全球碳排放与资源消耗大户而言，绿色转型已升级为"必答题"——尤其是中 国作为全球最大服装生产国与消费市场，行业可持续发展直接影响全球供应链的绿色化进程。 在消费者环保意识觉醒、资本市场ESG评级敏感度提升多重驱动下，中国运动鞋服品牌如何推进可持续发展实 践？就行业绿色转型路径热点话题，《华夏时报》记者在近日对李宁（02331.HK）相关负责人进行了采访，解码 这家国产运动龙头企业如何通过全产业链绿色重构，走出一条从单点突破到系统化布局的进阶之路。 鞋服业绿色转型思路 2024年，我国规模以上纺织企业交出了一份亮眼成绩单：工业增加值同比增长4.4%，营业收入达49532.1亿元，展 现出产业稳健发展的强劲韧性。而与此同时，在"双碳"目标上升为国家战略的时代语境下，中国鞋服产业正集体 站在绿色转型的十字路口。 全球报告倡议组织（GRI）董事局董事、中国管理学学会可持续发展管理专委 ...

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of HKD 18.25 [1][7]. Core Insights - The company reported a revenue of CNY 28.68 billion for 2024, representing a year-on-year increase of 3.9%. However, the net profit attributable to shareholders decreased by 5.5% to CNY 3.01 billion, resulting in a net profit margin of 10.5% [1][3]. - The company declared a final dividend of CNY 0.2073 per share, bringing the total annual dividend to CNY 0.5848 per share, with a payout ratio of 50%, an increase of 5 percentage points year-on-year [1][3]. Financial Performance Summary - **Revenue Growth**: The company achieved a total revenue of CNY 28,676 million in 2024, with a projected growth of 3.5% in 2025 and 1.0% in 2026 [3][10]. - **Net Profit**: The net profit for 2024 was CNY 3,013 million, with a forecasted decline of 9.1% in 2025, followed by a recovery of 10.8% in 2026 [3][9]. - **Earnings Per Share (EPS)**: The EPS for 2024 was CNY 1.17, expected to decrease to CNY 1.06 in 2025, before rising to CNY 1.17 in 2026 and CNY 1.29 in 2027 [3][9]. - **Valuation Ratios**: The price-to-earnings (P/E) ratio is projected to be 11.9 in 2024, increasing to 13.1 in 2025, and then decreasing to 11.8 in 2026 and 10.8 in 2027 [3][9]. Product and Channel Strategy - **Product Focus**: The company is concentrating on core categories, with a 30%-40% increase in product matrix width and a focus on professional products, which accounted for approximately 60% of revenue in 2024 [7]. - **Channel Performance**: - Wholesale channel revenue increased by 2.6% to CNY 12.9 billion, with 4,820 wholesale stores by the end of 2024. - Direct sales channel revenue slightly decreased by 0.3% to CNY 6.9 billion, with 1,297 direct sales stores. - E-commerce channel revenue grew by 10.3% to CNY 8.3 billion, indicating strong online performance [7]. Future Outlook - The management anticipates that revenue will remain stable in 2025, with a high single-digit net profit margin. The company has become the official sportswear partner for the Chinese Olympic Committee and the Chinese sports delegation, which is expected to enhance brand value [7].

Group 1: Chengdu Taikoo Li's 10th Anniversary Celebration - Chengdu Taikoo Li celebrates its 10th anniversary with a series of events showcasing its evolution into a world-class retail landmark [2][3] - The anniversary highlights include the "Your Incredible Moments" themed exhibition, featuring a ten-sided structure made from reclaimed wood, symbolizing the project's connection to the local culture [5][6] - Since its opening, Chengdu Taikoo Li has attracted over 30 million visitors annually and hosted over 50 high-quality cultural events, enhancing its status as a unique retail and lifestyle destination [6][8] Group 2: Li Ning's Environmental Initiative - Li Ning launched the "Li Ning Nature Space" pop-up event in Chengdu, focusing on promoting sustainable living and showcasing the brand's commitment to environmental technology [9][12] - The event features four main interactive areas that visualize the entire lifecycle of eco-friendly products, including the use of bio-based materials and water-saving dyeing processes [11][14] - Li Ning aims to deepen its commitment to sustainability by enhancing its eco-friendly product lifecycle through innovation in materials and processes, encouraging consumers to adopt green lifestyles [14]