Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a slight increase in overall retail sales for Q1 2024, with improvements in inventory and discount levels [3][4] - The company is a leading domestic sportswear brand, facing challenges in 2023 due to inventory pressures and issues related to unauthorized sales, but has shown signs of recovery in early 2024 [4] Summary by Relevant Sections Financial Performance - Total revenue for 2022 was 25,803 million, with a year-on-year growth of 14.31%. For 2023, it is projected to be 27,598 million, with a growth of 6.96%. The forecast for 2024 is 29,191 million, reflecting a growth of 5.77% [2] - The net profit attributable to the parent company for 2022 was 4,064 million, with a decline of 21.58% in 2023 to 3,187 million. The forecast for 2024 is 3,390 million, indicating a recovery with a growth of 6.37% [2] Retail and Sales Performance - For Q1 2024, the company's overall retail sales (excluding young segment) showed a low single-digit year-on-year growth, while same-store sales declined in the mid-single digits [3] - The number of stores as of Q1 2024 was 6,214, with a net increase of 8 stores compared to Q1 2023 [3] Inventory and Discounts - The inventory turnover ratio improved to just over 4 months in Q1 2024, compared to 4-4.5 months in Q1 2023, indicating healthier inventory levels [4] - Discounts for both online and offline channels showed a low single-digit improvement year-on-year, with offline discounts averaging around 60% [4] Earnings Forecast and Valuation - The company maintains a revenue growth guidance of mid-single digits for 2024, with a profit margin expected to remain in the low double digits [4] - The net profit forecasts for 2024 and 2025 have been adjusted down to 33.9 billion and 37.8 billion respectively, with a projected PE ratio of 14/12 for the respective years [4]

Investment Rating - The report maintains a "Buy" rating for Li Ning with a target price of HKD 28.3 [2][4]. Core Insights - Li Ning's Q1 2024 performance aligns with market expectations, with overall retail sales showing low single-digit growth year-on-year, driven by a strong e-commerce segment that grew by 20-30% [1][2]. - The company is expected to return to stable growth as inventory levels normalize, and it plans to launch marketing activities in conjunction with the upcoming Paris Olympics to enhance brand visibility [2]. Summary by Sections Financial Performance - For 2024, the expected EPS is projected at HKD 1.30, with forecasts of HKD 1.45 and HKD 1.59 for 2025 and 2026 respectively [2][3]. - Revenue is forecasted to grow from RMB 27,598 million in 2023 to RMB 29,257 million in 2024, reflecting a growth rate of 6.0% [3][9]. - The net profit attributable to shareholders (excluding non-recurring items) is expected to recover from RMB 3,046 million in 2023 to RMB 3,372 million in 2024, marking a growth of 10.7% [3][9]. Channel Performance - E-commerce channels outperformed expectations, with significant growth across various platforms, including over 100% growth on the Dewu platform and more than 20% on Douyin [1][2]. - Offline channels experienced a low single-digit decline, with direct sales showing mid-single-digit growth while wholesale channels faced a mid-single-digit decline [1][2]. Inventory and Discounts - The inventory turnover for offline channels is reported at 4-4.5 months, with 80% of inventory being new products, indicating a healthy inventory status [1][2]. - Retail discounts have improved year-on-year, with an overall discount rate of approximately 60% [1][2]. Store Count and Sales - As of the end of Q1, the total number of sales points decreased by 26 to 6,214, with retail points increasing by 1 to 1,499 and wholesale points decreasing by 27 to 4,715 [1][2]. - Same-store sales showed a low single-digit decline across offline channels, while e-commerce channels recorded a growth of 20-30% [1][2].

Investment Rating - The report maintains a "Buy" rating for Li Ning [4] Core Views - The company's Q1 2024 performance is stable, with adult revenue showing low single-digit year-on-year growth, while same-store sales declined in the mid-single digits. The company opened 8 new adult stores, bringing the total to 6,214 [1][2] - The children's segment is expected to outperform adults, with revenue growth projected in the single digits for Q1 2024. The total number of children's stores is 1,405, with a net decrease of 23 stores compared to the end of 2023 [2] - The company is focusing on optimizing channel efficiency and adjusting its store structure, with expectations for net store openings in lower-tier cities while closing underperforming stores in higher-tier cities [2] Summary by Sections Financial Performance - For 2024, the company expects revenue growth in the mid-single digits, with a stable profit margin. The projected revenues for 2024-2026 are 34.21 billion, 38.57 billion, and 43.50 billion respectively, with a PE ratio of 12 times for 2024 [2][3] - The revenue for 2023 was 27.60 billion, showing a growth rate of 7% year-on-year, while the net profit was 3.19 billion, reflecting a decline of 21.6% [3][8] Operational Insights - The company reported a healthy inventory turnover ratio of over 4, indicating effective inventory management. Discounts in both online and offline channels are showing improvement [2] - The adult segment's e-commerce sales grew by 20%-30% in the low range, benefiting from a lower base due to a shift in customer traffic back to offline stores [1][2] Market Position - Li Ning's total market capitalization is approximately 45.23 billion HKD, with a total share count of 2.58 billion shares [4] - The company is strategically enhancing its product mix and operational capabilities to improve the efficiency of high-quality stores [2]

Investment Rating - The report maintains an "Outperform" rating for the company, indicating an expected price increase of 10-20% [3][4]. Core Insights - The company's Q1 2024 sales performance met expectations, with the main brand (excluding Li Ning YOUNG) achieving low single-digit growth in retail revenue. Online sales grew by 20-30%, while offline channels saw a decline [3]. - The company is focusing on optimizing its channels and product offerings, particularly in the running shoe and fitness categories, which have shown strong growth. The basketball category is currently under adjustment [3]. - Inventory levels are healthy, with improvements in discount rates contributing to better average selling prices (ASP). The company expects continued improvement in discounts and stable ASP moving forward [3]. - Management maintains a conservative growth outlook for 2024, targeting mid-single-digit revenue growth and low double-digit profit margins, supported by new product launches and seasonal sales [3][4]. Financial Summary - The company forecasts revenue growth from 258 billion RMB in 2024 to 344 billion RMB by 2026, with a compound annual growth rate (CAGR) of approximately 9% [4][9]. - Net profit is projected to recover from 31.9 billion RMB in 2023 to 40.7 billion RMB in 2026, reflecting a gradual improvement in profitability [4][9]. - The gross margin is expected to remain stable around 48.4% to 49.2% over the forecast period, indicating effective cost management [4][9].

M N 24 Apr 2024 CMB International Global Markets | Equity Research | Company Update Li Ning (2331 HK) Healthy outlook after a beat in retail discounts Li Ning may not be our top pick in the sportswear sector. But thanks to potential Target Price HK$22.17 sequential acceleration in sales growth and decent margin improvement (better (Previous TP HK$24.86) discounts and operating leverage), we are still positive on Li Ning and maintain Up/Downside 19.9% BUY with TP of HK$ 22.17, based on 15x FY24E P/E. Current ...

Financial Data and Key Metrics Changes - In Q1 2024, the company's overall revenue increased by a low single-digit percentage year-on-year, with offline sales declining slightly while online sales grew by 20%-30% [1][2] - The same-store sales (SSSG) decreased in Q1, with direct sales and wholesale down by low single digits and mid-double digits respectively, while e-commerce saw a growth of 20%-30% [1][2] - The inventory turnover ratio improved to around 4.0, with nearly 90% of inventory being new products within six months [1] Business Line Data and Key Metrics Changes - Direct sales performance was better than wholesale, driven by outlet stores, with same-store sales for direct and wholesale both experiencing double-digit declines [1][2] - The total number of stores decreased by 26 compared to the end of last year, with direct stores increasing by 1 and wholesale stores decreasing by 27 [2] Market Data and Key Metrics Changes - The company is focusing on Southeast Asia for overseas expansion, with plans to open stores in markets like Singapore, Malaysia, Thailand, Indonesia, and the Philippines [6][7] - The company aims to maintain a steady growth in the domestic market while exploring overseas opportunities as a supplementary strategy [6][7] Company Strategy and Development Direction - The company plans to enhance its product offerings and marketing strategies, particularly in professional categories like basketball and running, while also focusing on low-tier cities [6][13] - The marketing budget will be directed towards professional categories, leveraging resources from CBA and other events to strengthen brand presence [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the annual performance guidance, with expectations of low double-digit net profit margin and mid-single-digit revenue growth [4][5] - The company anticipates a gradual improvement in sales performance in the second half of the year, especially in Q4, due to lower base effects [5] Other Important Information - The company is not planning significant channel expansions this year, with a focus on product upgrades and maintaining healthy inventory levels [9][11] - The new CMO has been instrumental in integrating marketing resources and enhancing brand strategy, with plans for significant promotional activities around the upcoming Olympics [10] Q&A Session Summary Question: What is the status of wholesale revenue and inventory? - Management indicated that both wholesale and direct sales have healthy inventory levels, with a turnover ratio of 4-4.5, and no adjustments to Q2 shipments are planned [3] Question: How are the new product lines performing? - New products like the "Ultra Light 21" and "Red Rabbit 7" have shown good growth, with the "Red Rabbit" series particularly popular among students, achieving nearly 50% growth year-on-year [3] Question: What are the expectations for the semi-annual report? - Management maintained the annual performance guidance, expecting revenue growth to be lower in the first half due to high base effects [4] Question: What is the outlook for the e-commerce channel? - E-commerce performance exceeded expectations in Q1, driven by a return of online traffic and effective price control, with hopes for profit margins to recover to over 20% [12] Question: How is the company addressing competition in lower-tier cities? - The company has a foundation in lower-tier markets and plans to expand product offerings to meet local demand, focusing on running and basketball shoes [6][13]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance [3][10]. Core Insights - The company's Q1 revenue met expectations, and there is an anticipated gradual improvement in revenue growth moving forward. The report forecasts a steady development for the brand, leveraging its position as a leader in the domestic sportswear market. The expected net profits for 2024-2026 are projected to be 3.38 billion, 3.75 billion, and 4.14 billion RMB respectively, with corresponding PE ratios of 12, 11, and 10 times [2][6]. Summary by Sections Financial Performance - Q1 revenue growth was in line with expectations, with a healthy inventory turnover ratio of 4-4.5 months. The online sales growth was between 20-30%, outperforming expectations, while offline sales showed a decline in low single digits [2][6]. - The company expects a gradual increase in revenue throughout 2024, driven by new product launches and marketing activities, with a forecasted revenue growth of mid-single digits year-on-year and a low double-digit net profit margin [2][6]. Market Position and Strategy - The company is positioned as a leader in the "Guochao" (national trend) sportswear market, with strong growth potential in women's, outdoor, and youth segments. The report highlights the successful performance of the outlet channels and the optimization of store structures, which contributed to better revenue growth compared to same-store sales [2][6]. - The anticipated product launches, including the Wade 11 in May and new products targeting emerging markets, are expected to enhance sales performance in the second half of the year [2][6].

纺织服饰 李宁（ ） 买入 维持 02331.HK -A( ) 24Q1 经营表现符合公司预期，维持全年业绩指引 2024年4月23日 公司研究/公司快报 公司近一年市场表现 事件描述  公司披露2024年第一季度运营情况。24Q1，李宁（不含李宁YOUNG）全平台零 售流水同比增长低单位数，全平台同店销售同比下降中单位数，截至24Q1末，李宁（不 含李宁YOUNG）门店共6214家，较年初净减少26家。 事件点评  24Q1公司零售流水平稳增长，零售折扣同比改善。零售流水方面，24Q1李宁（不 来源：最闻，山西证券研究所 含李宁YOUNG）全渠道零售流水同比增长低单位数，其中，线下渠道同比下降低单位 数，电商渠道同比增长20%-30%低段。公司1季度流水表现符合预期。零售折扣方面， 市场数据：2024年4月22日 线下渠道与电商渠道零售折扣同比均改善低单位数，其中线下直营渠道零售折扣同比改 收盘价（港元）： 17.500 善中单位数。库存周转方面，截至2024Q1末，公司线下直营与批发渠道库存周转均处 年内最高/最低（港元）： 59.050/14.940 于4-4.5个月区间，6个月以内新品占比接近90 ...

证券研究报告 | 2024年04月23日 李宁（02331.HK） 买入 第一季度流水小幅增长，零售折扣同比收窄  公司研究·海外公司快评  纺织服饰·服装家纺  投资评级：买入（维持评级） 证券分析师： 丁诗洁 0755-81981391 dingshijie@guosen.com.cn 执证编码：S0980520040004 证券分析师： 关竣尹 0755-81982834 guanjunyin@guosen.com.cn 执证编码：S0980523110002 事项： 公司公告：1、零售表现：截至2024年3月31日止第一季度，李宁销售点（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。就渠道而言，线下渠道（包括零售及批发）录得低单位数下降，其中零售（直 接经营）渠道录得中单位数增长，批发（特许经销商）渠道录得中单位数下降；电子商务虚拟店铺业务录得20%-30% 低段增长。2、销售点数量：截至2024年3月31日，于中国，李宁销售点数量（不包括李宁YOUNG）共计6214 个，本年迄今净减少26个。在净减少的26个销售点中，零售业务净增加1个，批发业务净减少27个。李宁 YOUN ...

交银国际研究 公司更新 消费 收盘价 目标价 潜在涨幅 2024年4月23日 港元17.50 港元21.00 +20.0% 李宁 (2331 HK) 1 季度符合指引；但各品类表现分化  1季度业绩符合预期：李宁2024 年1季度零售额整体低个位数增长，对比 个股评级 公司指引的全年同比增长中个位数，符合预期，因1季度有高基数（渠道 中性 重开），而4季度将有低基数（公司大幅削减对经销商的订单以去库存）， 全年增长有可能前低后高。按渠道划分，线上销售在1季度出现良好复苏 1年股价表现 （超20%增长），受得物（同比翻倍，目前占线上销售额接近20%）及抖 音（双位数增长，占线上销售额的 20%）等新平台带动；而线下销售弱于 2331 HK 恒生指数 10% 预期（同比下降低个位数），因正价店（自营店和加盟店）同店销售下降 0% -10% 超过10%，而奥特莱斯店录得增长。线下折扣改善了低个位数百分比，渠 -20% -30% 道库存有改善（4.5 倍）。 -40% -50% -60%  销售指引可能保守，但利润率仍面临压力：管理层重申之前的全年财务指 -70% -80% 引，即收入同比增长中个位数，净利润率低 ...