Tianfeng Securities·2024-05-31 06:07Investment Rating - The investment rating for Li Ning is "Buy" with a target price of HKD 20.7, maintained for the next six months [1]. Core Insights - Li Ning's focus on technological innovation is a key driver for the brand's growth, highlighted by the recent 2024 Li Ning Technology Conference showcasing its advancements in sports technology [1]. - The company has introduced six unique innovative technologies, including Carbon Core and GCU, which significantly enhance product performance and athlete experience [1]. - Revenue projections for Li Ning are estimated at RMB 29.3 billion, RMB 32.1 billion, and RMB 35.0 billion for the years 2024 to 2026, with corresponding net profits of RMB 3.4 billion, RMB 3.9 billion, and RMB 4.4 billion [2]. Summary by Sections Company Overview - Li Ning has a total of 6,214 main brand stores as of March 31, 2024, with a net decrease of 26 stores compared to the end of 2023 [1]. - The company is committed to enhancing its logistics network, which has improved the quality and efficiency of direct deliveries to retail and wholesale stores [1]. Financial Performance - The earnings per share (EPS) are projected to be RMB 1.3, RMB 1.5, and RMB 1.7 for the years 2024 to 2026, with price-to-earnings (PE) ratios of 15, 13, and 11 respectively [2]. - The company has maintained its profit forecasts, indicating confidence in its operational strategies and market positioning [2]. Market Strategy - Li Ning is focusing on a "single brand, multi-category, multi-channel" strategy to strengthen its brand presence and retail operational capabilities [2]. - The company is enhancing its digital logistics and supply chain transparency, which is expected to improve overall customer experience and operational efficiency [1].