Investment Rating - The report maintains a Neutral rating on Li Ning Co. with a 12-month price target of HK$23, indicating an upside potential of 11.7% from the current price of HK$20.60 [3][9][8]. Core Insights - Management reiterated guidance for a mid-single-digit (MSD) revenue growth driven by volume growth and a low teens percentage for net profit margin (NPM) in 2024 [2][4]. - The company showcased its capabilities in R&D during a recent Technology Show, launching upgraded technologies and new products that received positive market feedback [3][6]. - Running is expected to be the primary growth driver for the year, supported by enhanced technology and a broader product portfolio, while basketball products will see controlled volume and extended product lifecycles [6][3]. Summary by Sections Full Year Outlook - Management expects revenue growth to be driven by volume, with gross profit margin (GPM) expanding year-over-year due to improved discount levels [4][6]. - SG&A expenses are anticipated to rise in the first half of 2024 due to a low base in the previous year [4][6]. Recent Trends - The topline performance in April and May mirrored that of the first quarter, with an improved discount level in offline channels, aligning with 2022 levels [6][2]. - Online sales continue to outperform offline sales [6]. New Product Launches - The Technology Show introduced new technologies such as rainstorm-proof and Super Beng, along with the Jueying 3 product, which has received positive feedback [6][2]. - Upcoming product launches include upgraded versions of Yueying and Dilu shoes, as well as outdoor products leveraging new technologies [6]. Category Performance - Running is projected to be the most significant growth driver, with expectations of decent growth in training products and controlled volume for basketball products [6][3]. Share-Based Incentive Plan - A revised share-based incentive plan was introduced, focusing on profit as a key performance indicator (KPI) and adjusting the vesting period to 36 months [6][3]. Capital Expenditure - Management anticipates capital expenditures exceeding RMB 4 billion for the year, significantly higher than normal years, due to specific investments [6].
高盛：李宁消费者与休闲企业日_全年目标重申；健康且进一步改善的折扣