LI NING(02331) 华源证券·2024-11-25 15:44Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [4][63]. Core Views - The company focuses on a "single brand, multiple categories, and multiple channels" strategy, leveraging the "Guochao" trend for rapid development. It emphasizes innovation in product design and technology, maintaining a strong brand image in the sportswear sector [2][4][10]. - The company has seen significant growth in its e-commerce channels, with online revenue accounting for 27.9% of total revenue in the first half of 2024, up 5.4 percentage points from 2019. The direct sales channel has also recovered, reaching 24.4% of total revenue [5][56]. - The company is expected to continue its growth trajectory, with projected net profits of 31.26 billion RMB, 34.45 billion RMB, and 38.76 billion RMB for 2024, 2025, and 2026, respectively [6][60]. Summary by Sections 1. Company Operations - The company maintains a single brand strategy, focusing on five core categories: running, basketball, badminton, fitness, and sports lifestyle. It optimizes its offline channel layout and develops various store types to meet customer needs [2][27]. - The company has enhanced its brand image by integrating sports resources and sponsoring major events, which has increased brand exposure and product professionalism [35][37]. 2. E-commerce and Financial Management - E-commerce has become a new growth driver, with significant revenue increases from online channels. The company has also improved its management efficiency, leading to a better net profit margin [48][50]. - The company’s revenue and gross profit have shown a compound annual growth rate (CAGR) of 18.77% and 18.35%, respectively, from FY2019 to FY2023 [48][49]. 3. Profit Forecast and Valuation - The company is projected to achieve revenues of 281.61 billion RMB, 298.70 billion RMB, and 319.07 billion RMB for 2024, 2025, and 2026, with corresponding net profits of 31.26 billion RMB, 34.45 billion RMB, and 38.76 billion RMB [60][62]. - The report compares the company with peers in the sportswear industry, noting that its price-to-earnings (P/E) ratio for 2024 is 12.0X, which is lower than the industry average of 14.1X, supporting the "Buy" rating [6][63].