LI NING(02331) 交银国际·2025-04-10 12:28Investment Rating - The investment rating for the company is Neutral [3][12]. Core Insights - The company is expected to maintain stable revenue and gross margin performance in 2025, with a target price set at HKD 16.25, indicating a potential upside of 11.9% from the current closing price of HKD 14.52 [2][8]. - The company achieved a revenue of RMB 28.68 billion in 2024, reflecting a year-on-year growth of 3.9%, primarily driven by a 7% increase in footwear sales [8][14]. - The gross margin improved by 1 percentage point to 49.4%, attributed to better discount management in e-commerce channels and enhanced efficiency in direct sales channels [8][14]. - The management announced a dividend of RMB 0.5848 per share, increasing the payout ratio to 50% [8][14]. Financial Overview - Revenue projections for the company are as follows: RMB 29.08 billion in 2025, RMB 30.81 billion in 2026, and RMB 32.86 billion in 2027, with corresponding year-on-year growth rates of 1.4%, 5.9%, and 6.6% respectively [5][14]. - Net profit is expected to decline slightly to RMB 2.97 billion in 2025, with a net profit margin of 10.2% [5][14]. - The company plans to optimize its product mix and maintain or slightly improve gross margins despite external uncertainties [8][14]. Performance Metrics - The company’s earnings per share (EPS) are projected to be RMB 1.15 in 2025, with a price-to-earnings (P/E) ratio of 11.9 [5][14]. - The dividend yield is expected to be around 4.2% in 2025, increasing to 5.5% by 2027 [5][14]. - The company’s cash and cash equivalents are projected to grow from RMB 5.44 billion in 2023 to RMB 10.65 billion in 2027 [14][15].