智通财经网·2026-03-23 08:38Core Viewpoint - Daiwa has raised its revenue forecast for Li Ning (02331) for the next two years by 4% to 7% due to strong brand momentum, but has extended the profit margin recovery timeline, resulting in a downward adjustment of core earnings per share by 3% to 5% [1] Group 1: Revenue and Profit Forecast - Revenue forecasts for Li Ning have been increased by 4% to 7% for the next two years, reflecting strong brand performance [1] - The target price has been raised from HKD 24 to HKD 27, based on a projected price-to-earnings ratio of 20 times for 2026, close to its five-year average [1] - The net profit margin guidance remains unchanged at a high single-digit percentage, which is considered reasonable as the priority should be to rebuild brand appeal [1] Group 2: Market Performance and Sentiment - Li Ning's performance in the second half of last year exceeded market expectations, leading to the largest single-day stock price increase in recent years [1] - The company’s cash net assets account for approximately 40% of its market value, indicating market perception of execution risk [1] - The management has indicated that retail sales in the first quarter of this year recorded a high single-digit percentage year-on-year growth, with the annual sales guidance raised to high single-digit growth, marking the strongest revenue expansion since 2022 [1] Group 3: Investment Recommendation - Daiwa maintains a "Buy" rating for Li Ning, considering the risk-reward profile attractive based on current trends [1] - The report suggests that the revenue growth story for Li Ning is confirmed in the short term, with most of the upside potential yet to be realized [1]