智通财经网·2025-07-15 06:40Core Viewpoint - Company maintains EPS forecasts for 2025/26 at 0.92/1.07 HKD, with current stock price corresponding to 16/14 times 2025/26 P/E ratio, maintaining an outperform rating and target price of 20.82 HKD, indicating a 30% upside potential from current price [1] Group 1: Financial Performance - In Q2 2025, the retail revenue of the Li Ning brand (excluding Li Ning YOUNG) grew low single digits year-on-year, with a net increase of 11 retail points in the quarter [1] - Wholesale channel continues to outperform direct sales, with offline wholesale retail revenue growing low single digits year-on-year and a net opening of 24 retail points during the period; online channel retail revenue grew mid single digits year-on-year [2] - The running category saw sales growth in high single digits year-on-year, while the fitness category continued to perform well with high single-digit growth; the sports lifestyle category stabilized with year-on-year growth flat in Q2 2025 [2] Group 2: Inventory and Discounts - Despite a volatile retail environment, the company maintained a healthy inventory level, with a channel inventory turnover ratio of approximately 4x as of the end of June, indicating controllable inventory status [2] - Discounts in both online and offline channels deepened low single digits year-on-year [2] Group 3: Marketing and Future Outlook - As retail remains volatile since July, the company plans to increase marketing and product investment focused on "Olympics plus technology" for the second half of the year, including activities related to Olympic sponsorship and new product launches in various categories [3] - The management maintains guidance for 2025 revenue to be flat year-on-year, with net profit margin in high single digits [3]