LI NING(02331) 山西证券·2024-08-19 04:09Investment Rating - The report maintains a "Buy-A" rating for Li Ning (02331.HK) [1] Core Views - The company achieved a revenue of 14.345 billion yuan in H1 2024, representing a year-on-year growth of 2.3%, while the net profit attributable to shareholders was 1.952 billion yuan, down 8.0% year-on-year [1][2] - The company focuses on solidifying its foundation and pragmatic development, leading to stable revenue growth driven by e-commerce and direct sales channels [1][3] - The report highlights the improvement in retail discounts, which contributed to an increase in gross margin to 50.4%, up 1.6 percentage points year-on-year [2] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 14.345 billion yuan, with a year-on-year increase of 2.3% [1] - The net profit attributable to shareholders was 1.952 billion yuan, reflecting a decline of 8.0% year-on-year [1] - The gross margin improved to 50.4%, an increase of 1.6 percentage points, mainly due to higher margins in e-commerce and direct sales channels [2] Revenue Breakdown - Revenue from footwear, apparel, accessories, and equipment in H1 2024 was 7.844 billion yuan, 5.375 billion yuan, 1.126 billion yuan, respectively, with year-on-year growth rates of 4.4%, -4.7%, and 30.3% [1] - The retail sales of running and fitness categories performed well, while basketball category sales declined due to controlled shipments [1] Channel Performance - Direct sales revenue grew by 2.7% year-on-year, with 1,495 direct stores, a net decrease of 3 stores [1] - E-commerce revenue increased by 11.4% year-on-year, with double-digit growth in retail sales [1][2] - Wholesale revenue decreased by 2.0% year-on-year as the company managed the shipment rhythm to ensure healthy inventory levels [1] Future Outlook - The company expects revenue for 2024-2026 to be 28.601 billion yuan, 31.055 billion yuan, and 33.418 billion yuan, with year-on-year growth rates of 3.6%, 8.6%, and 7.6% respectively [3] - Net profit forecasts for the same period are 3.314 billion yuan, 3.687 billion yuan, and 3.966 billion yuan, with growth rates of 4.0%, 11.3%, and 7.6% respectively [3]