Guotai Junan Securities·2024-05-30 10:31Investment Rating - The investment rating for the company is "Buy" [2] Core Insights - The report highlights that the company possesses a rare professional sports gene and industry-leading product capabilities. With 2024 being a significant year for sports, the launch of multiple technological platforms and new products is expected to drive revenue growth. The net profit forecasts for 2024-2026 are set at 3.38 billion, 3.75 billion, and 4.14 billion RMB, respectively, with the current stock price corresponding to PE ratios of 15, 13, and 12 times [6][8]. Summary by Sections Company Overview - The report discusses the launch of three industry-leading innovations at the "2024 Li Ning Technology Show," including the "Absolute Shadow 3," "Dragon Sparrow," and "Anti-Rain Double Permeable Nano Technology" [6]. Product Innovations - The "Absolute Shadow 3" is expected to be released soon, featuring three major upgrades that enhance rebound strength, energy efficiency, and stability. The "Dragon Sparrow" is positioned as the lightest marathon racing shoe in the industry, weighing under 89g for size 8.5, incorporating advanced lightweight materials [7]. Market Expectations - With the upcoming Paris Olympics in July 2024, the company plans to launch new products and marketing initiatives starting in Q2. The report anticipates that the second half of the year will see better revenue and same-store sales growth compared to the first half, driven by new product launches and marketing efforts [8]. Financial Projections - The financial summary indicates a steady increase in revenue from 14.457 billion RMB in 2020 to an expected 35.370 billion RMB in 2026, with a projected net profit growth from 4.011 billion RMB in 2022 to 4.144 billion RMB in 2026. The PE ratio is expected to decrease from 16 in 2023 to 12 in 2026 [9].