Xin Lang Cai Jing·2026-03-23 06:34Core Viewpoint - Bank of America Securities reports that Li Ning (02331) is expected to exceed performance expectations for 2025, with management guidance indicating high single-digit growth in revenue and net profit margin for 2026, also surpassing expectations [1][5] Group 1: Performance Expectations - Li Ning's rating has been upgraded from "Neutral" to "Buy" with a target price increase from HKD 20.2 to HKD 25 [1][5] - The company is experiencing a resurgence in growth, with stable growth in the running shoe segment, stabilization in the basketball segment, a renewed acceleration in the leisure segment, and increased contributions from badminton and outdoor businesses [1][5] Group 2: Financial Insights - Although discounts and promotional expenses may pressure profit margins, reductions in direct store-related expenses, lower effective tax rates, and decreased impairment charges can provide a buffer [1][5] - The bank anticipates that earnings will have bottomed out by 2025 and will recover to high single-digit growth in 2026 [1][5]