LI NING(02331) 海通证券·2024-10-29 10:47Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The report highlights a slowdown in overall channel revenue growth in Q3 2024, with total revenue and offline revenue both declining compared to Q2 2024. Direct sales, distribution, and e-commerce revenues showed mixed results, with e-commerce maintaining positive growth due to a shift in consumer traffic from offline to online channels [4][5] - The company has established a joint venture with HongShan Capital to enhance its overseas operations, focusing on Southeast Asia and Belt and Road countries. The total capital for the joint venture is HKD 200 million [5] - The company is integrating advanced technology with Eastern aesthetics in its outdoor product line, launching new collections that cater to both trendy and hardcore outdoor activities [5] Financial Summary - The company’s revenue for 2023 is projected at HKD 27,598.49 million, with a year-on-year growth of 6.96%. The net profit for 2023 is estimated at HKD 3,186.91 million, reflecting a decline of 21.58% compared to the previous year [7][9] - The projected net profit for 2024 and 2025 is HKD 31.7 billion and HKD 33.7 billion respectively, with a price-to-earnings (PE) valuation range of 13-15X for 2024, translating to a target price range of HKD 17.33 to HKD 19.99 per share [6][9] - The company maintains a gross margin of approximately 48.38% for 2023, with slight improvements expected in subsequent years [9][10] Market Performance - The company has a total of 6,281 stores as of Q3 2024, with a net increase of 41 stores year-to-date. The report indicates a focus on adjusting higher-tier market stores while continuing to explore lower-tier markets [4][5]