智通财经网·2025-12-29 03:09Core Viewpoint - Guosen Securities is optimistic about the brand momentum recovery of Li Ning (02331), predicting net profits for 2025-2027 to be CNY 2.4 billion, CNY 2.68 billion, and CNY 3.06 billion respectively, driven by new products and marketing strategies [1] Industry Overview - The Chinese sports outdoor footwear and apparel market is expected to reach CNY 440 billion by 2025, with a current growth rate of around 6% after experiencing fluctuations due to the pandemic [2] - The market structure is changing significantly, with professional sports categories growing faster than fashion sports, and the market concentration decreasing from 76% in 2019 to 68% in 2025 [2] Company Performance Review - From 2019 to 2021, the company experienced significant growth, with net profits reaching CNY 4 billion in 2021, a 5.6 times increase from three years prior [3] - However, from 2022 to 2024, the company faced challenges due to a cooling of the "national trend" and macroeconomic pressures, leading to a slowdown in revenue growth and a decline in net profit margins [3] - By 2025, the company is expected to recover through inventory management and channel optimization, alongside securing core marketing resources for the 2028 Olympic cycle [3] Product Cycle - The company's leading categories have shifted from basketball and sports lifestyle to running, which is expected to grow at a rate of 25%-45% in 2023-2024, becoming the largest category at 34% [4] - Basketball shoes have stabilized in price after a decline, while the running shoe matrix continues to expand, with new technologies expected to drive growth [4] Channel Strategy - Starting in 2024, the company plans to reduce the number of direct stores and control store sizes, which is projected to improve direct operating profit margins from around 10% in 2023 to mid-double digits by the first half of 2025 [5] - The introduction of specialized stores, such as "Dragon Stores" and outdoor stores, aims to tap into niche markets [5] Marketing Efforts - The company plans to increase its marketing expense ratio to low double digits starting in 2025, focusing on securing core Olympic resources and enhancing exposure for new products through events and athlete endorsements [6] - Social media engagement is also being strengthened, with increases in post frequency, follower count, and interaction metrics [6]