LI NING(02331) 海通证券·2024-08-21 06:13Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company recorded a revenue of 14.35 billion yuan in 24H1, representing a year-on-year increase of 2.3%, while net profit decreased by 8% to 1.95 billion yuan [4] - The gross margin improved to 50.4%, up by 1.6 percentage points year-on-year, driven by better discount management on new products and a reduction in discounts on e-commerce platforms [4] - The company announced an interim dividend of 0.3775 yuan per share, with a payout ratio of 50%, reflecting a 5% increase year-on-year [4] Revenue and Profitability - In 24H1, the company's revenue was 14.35 billion yuan, with a gross margin of 50.4% and a net profit of 1.95 billion yuan, resulting in a net profit margin of 13.6% [4] - The company faced macroeconomic pressures but still achieved positive revenue growth, while the net profit margin declined due to increased selling expenses [4] Sales Performance - In 24Q2, the overall sales growth for the Li Ning brand slowed down compared to Q1, with total sales and offline sales both experiencing low single-digit declines [4] - The revenue for the Li Ning brand in 24H1 was 13.72 billion yuan, a year-on-year increase of 4%, with direct sales and e-commerce showing growth [4] Product Categories - The running category led the growth with a year-on-year increase of 25%, while other categories like fitness and basketball saw moderate growth [4] - The company has strengthened its brand's professional attributes by expanding its product matrix in running shoes, achieving a total sales volume of over 5 million pairs [4] Channel Management - The number of channels remained stable, with overall inventory levels being manageable [5] - The company adjusted its distribution strategy to control channel inventory effectively, resulting in a healthy overall inventory turnover [5] Financial Forecast and Valuation - The company is expected to continue expanding its influence in the professional sports market, with projected net profits of 3.17 billion yuan and 3.37 billion yuan for 2024 and 2025, respectively [5] - The valuation for 2024 is estimated at a price-to-earnings (P/E) ratio of 13-15X, translating to a reasonable share price range of 17.33-19.99 yuan [5]