Investment Rating - The report maintains a "Buy-A" rating for Li Ning (02331.HK) [1][3] Core Views - The company achieved a revenue of 14.345 billion yuan in H1 2024, representing a year-on-year growth of 2.3%, while the net profit attributable to shareholders was 1.952 billion yuan, a decline of 8.0% year-on-year [1][3] - The company focuses on solidifying its foundation and pragmatic development, leading to stable revenue growth driven by e-commerce and direct sales channels [1][3] - The report highlights the improvement in retail discounts, which contributed to a gross margin increase to 50.4%, up 1.6 percentage points year-on-year [2][3] Summary by Sections Financial Performance - In H1 2024, the company reported a gross margin of 50.4%, a year-on-year increase of 1.6 percentage points, primarily due to improved margins in e-commerce and direct sales channels [2] - The sales expense ratio increased to 30.2%, up 2.0 percentage points year-on-year, with advertising and marketing expenses rising to 8.7% [2] - The operating profit margin decreased by 1.0 percentage points to 16.7%, and the net profit margin fell by 1.5 percentage points to 13.6% [2] Revenue Breakdown - Revenue from footwear, apparel, accessories, and equipment in H1 2024 was 7.844 billion, 5.375 billion, 1.126 billion, and 0.5 billion yuan respectively, with year-on-year growth rates of 4.4%, -4.7%, and 30.3% [1] - The retail sales from running, fitness, basketball, and sports lifestyle categories accounted for 30%, 14%, 22%, and 33% respectively, with year-on-year growth rates of 25%, 7%, -20%, and -7% [1] Channel Performance - Direct sales revenue grew by 2.7% year-on-year, with 1,495 direct stores, a net decrease of 3 stores compared to the beginning of the year [1] - E-commerce revenue increased by 11.4% year-on-year, with double-digit growth in retail sales and improved customer traffic [1][2] - Wholesale revenue declined by 2.0% year-on-year as the company managed the delivery rhythm to ensure healthy inventory levels [1] Future Outlook - The company expects revenue for 2024-2026 to be 28.601 billion, 31.055 billion, and 33.418 billion yuan, with year-on-year growth rates of 3.6%, 8.6%, and 7.6% respectively [3] - Net profit forecasts for the same period are 3.314 billion, 3.687 billion, and 3.966 billion yuan, with growth rates of 4.0%, 11.3%, and 7.6% respectively [3]

Investment Rating - The report maintains a "Buy-A" rating for Li Ning (02331.HK) [1] Core Views - The company achieved a revenue of 14.345 billion yuan in H1 2024, representing a year-on-year growth of 2.3%, while the net profit attributable to shareholders was 1.952 billion yuan, down 8.0% year-on-year [1][2] - The company focuses on solidifying its foundation and pragmatic development, leading to stable revenue growth driven by e-commerce and direct sales channels [1][3] - The report highlights the improvement in retail discounts, which contributed to an increase in gross margin to 50.4%, up 1.6 percentage points year-on-year [2] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 14.345 billion yuan, with a year-on-year increase of 2.3% [1] - The net profit attributable to shareholders was 1.952 billion yuan, reflecting a decline of 8.0% year-on-year [1] - The gross margin improved to 50.4%, an increase of 1.6 percentage points, mainly due to higher margins in e-commerce and direct sales channels [2] Revenue Breakdown - Revenue from footwear, apparel, accessories, and equipment in H1 2024 was 7.844 billion yuan, 5.375 billion yuan, 1.126 billion yuan, respectively, with year-on-year growth rates of 4.4%, -4.7%, and 30.3% [1] - The retail sales of running and fitness categories performed well, while basketball category sales declined due to controlled shipments [1] Channel Performance - Direct sales revenue grew by 2.7% year-on-year, with 1,495 direct stores, a net decrease of 3 stores [1] - E-commerce revenue increased by 11.4% year-on-year, with double-digit growth in retail sales [1][2] - Wholesale revenue decreased by 2.0% year-on-year as the company managed the shipment rhythm to ensure healthy inventory levels [1] Future Outlook - The company expects revenue for 2024-2026 to be 28.601 billion yuan, 31.055 billion yuan, and 33.418 billion yuan, with year-on-year growth rates of 3.6%, 8.6%, and 7.6% respectively [3] - Net profit forecasts for the same period are 3.314 billion yuan, 3.687 billion yuan, and 3.966 billion yuan, with growth rates of 4.0%, 11.3%, and 7.6% respectively [3]

Investment Rating - The report maintains a "Hold" rating for Li Ning (2331.HK) [12][27]. Core Views - The company has faced pressure on retail sales, discounts, channel inventory, and profit margins since the second half of last year. Concerns remain about the weakening brand strength compared to peers, despite a low valuation [12][23]. - The management has lowered the 2024 full-year performance guidance to low single-digit revenue growth and a low double-digit net profit margin, emphasizing a focus on stability rather than aggressive expansion [12][24]. - The report indicates that the retail environment remains challenging, with offline sales continuing to decline and the need for potential discounting to stimulate sales, which may pressure gross margins [12][23]. Financial Performance Summary - For 1H24, revenue grew by 2.3% year-on-year, primarily driven by significant growth in badminton wholesale revenue. Excluding this channel, revenue is expected to decline low single digits [12][23]. - Gross margin expanded by 1.6 percentage points year-on-year, attributed to improvements in retail discounts in e-commerce and direct sales channels. However, the sustainability of this improvement is uncertain given the weak sales environment [12][23]. - Channel inventory increased by mid-single digits year-on-year, with a rising inventory-to-sales ratio, indicating a deterioration in inventory age structure [12][23]. - The company’s overall wholesale revenue declined by 3% year-on-year in 1H24, with a more significant drop in wholesale revenue excluding the professional channel [12][23]. Target Price Adjustment - The target price has been lowered to HKD 14.5, based on an 11x forward P/E for the next 12 months, reflecting the ongoing pressure on short-term performance and the need for more evidence to support a more optimistic price outlook [12][24].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][30]. Core Insights - In H1 2024, the company achieved revenue of HKD 14.345 billion, a year-on-year increase of 2.3%, while the net profit attributable to shareholders was HKD 1.952 billion, a decrease of 8.0%. The interim dividend payout ratio increased from 45% in H1 2023 to 50% in H1 2024 [9][30]. - The company is focusing on enhancing its cash management capabilities and expanding its product offerings and channel development to address multi-tiered market demands, particularly in the running category, which is expected to continue its high growth [30]. Revenue Summary - Revenue by category in H1 2024: Shoes, Apparel, and Accessories generated HKD 7.844 billion, HKD 5.375 billion, and HKD 1.126 billion, reflecting year-on-year changes of +4.4%, -4.7%, and +30.3% respectively [10]. - Revenue by channel in H1 2024: Wholesale, Retail, E-commerce, and Overseas generated HKD 6.590 billion, HKD 3.503 billion, HKD 4.004 billion, and HKD 0.250 billion, with year-on-year changes of -2.0%, +2.7%, +11.4%, and -14.39% respectively [10]. Profitability Summary - The gross profit margin for H1 2024 was 50.4%, an increase of 1.6 percentage points, primarily due to improvements in channel mix and e-commerce gross margins [24]. - Operating profit for H1 2024 was HKD 2.402 billion, with an operating profit margin of 16.7%, down 1.0 percentage points year-on-year [25]. Store and Channel Development - As of H1 2024, the company operated 7,677 stores, a 3.1% increase year-on-year, with 6,239 core brand stores and 1,438 Li Ning Young stores [21]. - The average store area increased to 245 square meters, with an average monthly store efficiency of HKD 310,000 [21]. Cash Flow and Financial Health - The company reported a net cash position of HKD 17.581 billion, a decrease of 2.2% from the end of 2023, with operating cash flow of HKD 2.730 billion, an increase of 40.6% [29].

港股公司报告 | 公司点评 | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|--- ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated stable operations with notable performance in the e-commerce channel. For the first half of 2024, the company achieved total revenue of 14.345 billion RMB, a year-on-year increase of 2.3%, while the net profit attributable to shareholders was 1.952 billion RMB, a decrease of 8.0% compared to the previous year [3][4] - The overall gross margin improved to 50.44%, an increase of 1.66 percentage points year-on-year, driven by enhancements in the gross margins of both direct sales and e-commerce channels [4] - The company is focusing on optimizing its store structure and enhancing high-quality and emerging market channels, with a total of 7,677 sales points as of mid-2024, an increase of 229 from the previous year [4] Financial Performance Summary - For the first half of 2024, the revenue breakdown by category is as follows: footwear at 7.844 billion RMB (up 4.4% year-on-year), apparel at 5.375 billion RMB (down 4.7%), and equipment and accessories at 1.126 billion RMB (up 30.3%) [4] - Revenue by channel shows: franchised distributors at 6.590 billion RMB (down 2.0%), direct sales at 3.502 billion RMB (up 2.7%), e-commerce at 4.004 billion RMB (up 11.4%), and international markets at 248 million RMB (down 14.4%) [4] - The company’s operating cash inflow increased by 40.6% to 2.73 billion RMB, indicating healthy operational efficiency [4] Earnings Forecast and Valuation - The company’s revenue is projected to reach 28.531 billion RMB in 2024, with a growth rate of 3%, and net profit is expected to be 3.252 billion RMB, reflecting a 2% increase [6][7] - The price-to-earnings (P/E) ratio is estimated at 10, 8, and 7 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation outlook [6][7]

上 市 公 司 纺织服饰 2024 年 08 月 17 日 李宁 (02331) 公 司 点 评 / 公 司 点 评 报告原因：有业绩公布需要点评 | --- | --- | |------------------------|---------------------| | 市场数据： | 2024 年 08 月 16 日 | | 收盘价（港币） | 13.10 | | 恒生中国企业指数 | 6161.9 | | 52 周最高/最低（港币） | 40.65/12.88 | | H 股市值（亿港币） | 338.57 | | 流通 H 股（百万股） | 2,584.48 | | 汇率（人民币/港币） | 1.0911 | 一年内股价与基准指数对比走势： -66% -16% 34% HSCEI 李宁 资料来源：Bloomberg 证券分析师 王立平 A0230511040052 wanglp@swsresearch.com 刘佩 A0230523070002 liupei@swsresearch.com 研究支持 刘佩 A0230523070002 liupei@swsresearch.com 联系人 刘佩 ( ...

证券研究报告 | 半年报点评 2024gszqdatemark 年 08 月 17 日 李宁（02331.HK） 2024H1 表现符合预期，全年业绩预计持平略增 公司 2024H1 营收增长 2.3%，归母净利润下降 8%，整体表现符合预 期。1）收入：2024H1 公司营收同比增长 2.3%至 143 亿元，其中批发/直 营/电商增速分别-2%/+3%/+11%。2）毛利率：2024H1 公司毛利率同比 提升 1.6pcts 至 50.4%，毛利率的提升一方面来源于电商以及线下直营业 务折扣的改善，另一方面来源于电商&直营占比提升导致渠道结构变化。 3）销售费用率：2024 年作为体育赛事大年，李宁加强销售费用投放， 2024H1 销售费用率提升 2pcts 至 30.2%。4）归母净利润：综合考虑利息 收入等非经常性收益的减少后，公司上半年归母净利润同比下降 8%至 20 亿元，归母净利率同比-1.5pcts 至 13.6%。5）派息：公司拟派发中期股 息每股 37.75 分/股，股利支付率为 50%（2023 年同期为 45%）。 李宁成人装：短期流水有所波动，公司重视内功修炼，推动品牌可持续增 长。 ...

Investment Rating - The report maintains an "Outperform the Market" rating for Li Ning [1][4][32]. Core Insights - The company achieved a revenue growth of 2.3% year-on-year to 14.35 billion yuan in the first half of 2024, despite a challenging consumer environment [1][7]. - Gross margin improved by 1.6 percentage points to 50.4%, driven by better discount management and changes in channel structure [1][7]. - The company plans to increase its interim dividend payout ratio to 50%, up from 45% in the previous year [1][7]. Revenue and Profitability - Revenue for the first half of 2024 was 14.35 billion yuan, with a net profit of 1.95 billion yuan, reflecting an 8% decline year-on-year [1][7]. - The operating profit margin decreased by 0.9 percentage points to 16.7%, while the net profit margin fell by 1.5 percentage points to 13.6% [1][7]. - The company expects revenue growth in 2024 to be in the low single digits, with net profit margin maintained in the low double digits [31][32]. Product Performance - The running category led growth with a 25% increase, with three core running shoe series selling over 5 million pairs [15][32]. - The basketball category saw a decline in both growth and market share, attributed to a slowdown in the overall basketball market [15][32]. - The sports lifestyle category's sales increased significantly, with the soft series achieving a nearly fourfold year-on-year growth [15][32]. Channel Performance - Revenue from the wholesale channel decreased by 2% to 6.59 billion yuan, while direct sales grew by 2.7% to 3.5 billion yuan [13][32]. - E-commerce revenue increased by 11.4% to 4 billion yuan, with a significant improvement in customer traffic and conversion rates [13][32]. - The overall inventory turnover ratio remained healthy, with a 3.9-month inventory turnover period [20][32]. Financial Forecasts - The company revised its profit forecasts for 2024-2026, expecting net profits of 3.15 billion, 3.55 billion, and 3.86 billion yuan respectively [32][33]. - The target price was adjusted to 17.9-19.2 HKD, down from 24.3-25.7 HKD, reflecting a price-to-earnings ratio of 13.5-14.5x for 2024 [32][34].

Investment Rating - The report maintains a "Buy" rating for Li Ning (2331) [2] Core Views - H1 2024 performance exceeded expectations, with profits surpassing forecasts while revenue met expectations [3] - The company revised its full-year 2024 revenue guidance downward due to ongoing macroeconomic pressures [3] - Li Ning's operating quality remains healthy, with the running category performing exceptionally well [4] Financial Performance - H1 2024 revenue reached RMB 14.345 billion, a 2.3% year-on-year increase [4] - Net profit for H1 2024 was RMB 1.952 billion, an 8% year-on-year decrease [4] - Gross margin improved to 50.4%, up 1.6 percentage points year-on-year [4] - Net profit margin declined to 13.6%, down 1.5 percentage points year-on-year [4] - The company plans to pay an interim dividend of 37.75 cents per share, with a payout ratio of 50% [4] Business Operations - Running category sales increased 25% year-on-year in H1 2024, accounting for 30% of total sales [4] - Basketball category sales decreased 20% year-on-year in H1 2024, representing 22% of total sales [4] - Inventory turnover improved to 3.9 months, down from 4-4.5 months in Q1 2024 [4] - E-commerce gross margin increased by 0.9 percentage points, while direct-to-consumer gross margin rose by 0.5 percentage points [4] Market Performance - Current stock price: HKD 13.10 [5] - 52-week price range: HKD 13.10 - 40.75 [5] - Current market capitalization: HKD 33.857 billion [5] Financial Projections - 2024-2026 net profit forecasts adjusted to RMB 3.20/3.62/3.90 billion, down from previous estimates of RMB 3.38/3.75/4.14 billion [4] - Projected PE ratios for 2024-2026: 10/9/8 times [4] - Revenue growth guidance for 2024 revised from mid-single-digit to low-single-digit growth [4]