Core Viewpoint - DBS has upgraded its target price for Li Ning (02331) from HKD 17.4 to HKD 19.5, reflecting a recovery in growth despite intense market competition, with a projected price-to-earnings ratio of 16 times for the next 12 months [1] Company Summary - Li Ning is recognized as a leading domestic sportswear brand in China, holding a market share of 10.3% as of 2024 [1] - The company has developed the Li Ning YOUNG and Li Ning China brands to align with youth culture trends [1] - DBS expects Li Ning's sales to grow modestly by 1% in fiscal year 2025 and by 6% in fiscal year 2026, driven by stable growth in running and outdoor apparel categories [1] Industry Summary - The sports lifestyle segment is experiencing stable growth, contributing positively to Li Ning's overall performance [1] - The upcoming 2026 Winter Olympics in Milan is anticipated to further boost investment and sales in the sportswear sector [1] - Improvements in retail discount rates for both offline and e-commerce channels have been noted, indicating better pricing strategies [1]

Core Viewpoint - DBS has released a report stating that Li Ning (02331) is a leading domestic sportswear brand in China, with a market share of 10.3% as of 2024 [1] Group 1: Company Performance - Li Ning has developed the Li Ning YOUNG and Li Ning China brands to align with youth culture trends [1] - The company has improved retail discount rates in both offline and e-commerce channels [1] Group 2: Market Outlook - Despite intense market competition, growth is recovering, prompting DBS to raise the target price from HKD 17.4 to HKD 19.5 per share, based on a rolling 12-month P/E ratio of 16 times [1] - Sales for Li Ning are expected to grow modestly by 1% and 6% in the fiscal years 2025 and 2026, driven by stable growth in running and outdoor apparel categories, as well as investments related to the 2026 Winter Olympics in Milan [1] - The growth in the sports lifestyle segment is stabilizing [1] Group 3: Comparative Valuation - The revised target P/E ratio of Li Ning is compared to global peers, which are forecasted to have P/E ratios of 24 times and 19.9 times for the fiscal years 2025 and 2026, respectively [1] - The rating for Li Ning is set at "Buy" [1]