LI NING(02331) 国海证券·2024-08-18 05:11Investment 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]