LI NING(HK:02331) GOLDEN SUN SECURITIES·2024-10-23 06:43Investment Rating - The report maintains a "Buy" rating for Li Ning Company [2][4]. Core Views - Li Ning's Q3 sales remain volatile, with an expectation of flat performance for the entire year due to fluctuations in the consumer environment [2]. - The company is focusing on optimizing its offline channels while expanding its presence in lower-tier cities, resulting in a net decrease of 14 direct stores and a net increase of 55 wholesale stores since the beginning of 2024 [2]. - E-commerce sales have shown a mid-single-digit percentage increase, outperforming offline sales, attributed to improved consumer conditions and enhanced operational efficiency [2]. - The establishment of a joint venture to expand overseas operations, particularly in Southeast Asia, is expected to leverage multiple strengths for international business exploration [2]. - The overall revenue growth for 2024 is projected at 1%, with a stable performance anticipated despite a decrease in non-operating income [2]. Financial Summary - Revenue for 2024 is estimated at 27,894 million, with a growth rate of 1.1% year-on-year [3][9]. - Net profit for 2024 is projected at 3,190 million, reflecting a slight increase of 0.1% year-on-year [3][9]. - The report outlines a gradual improvement in gross margin and cost control measures, contributing to stable annual performance [2]. - Key financial ratios include a projected P/E ratio of 12 times for 2024, with EPS expected to remain at 1.23 [3][9]. Store Expansion and Performance - As of Q3 2024, Li Ning has 1,459 young stores, with a net increase of 21 stores since Q2 2024, indicating a continued focus on children's sportswear [2]. - The company is actively building its product matrix and optimizing channel structures in the children's apparel segment [2].