Investment Rating - The report assigns a "Buy" rating to the company, with a current price of HKD 19.00 and a fair value of HKD 20.22 [5]. Core Insights - The launch of the Honor Gold Standard product series and the new "Dragon Store" concept is expected to drive brand performance growth. The Dragon Store aims to create a space that integrates product experience, emotional resonance, and cultural exchange, while the Honor Gold Standard series focuses on multifunctional and versatile designs for various scenarios [9]. - The company anticipates that the synergy between the Honor Gold Standard series and the Dragon Store will contribute to revenue growth in 2026, targeting high-quality consumer segments with diverse needs [9]. - Profit forecasts indicate that the company's net profit attributable to shareholders is expected to be CNY 2.472 billion in 2025, CNY 2.634 billion in 2026, and CNY 2.828 billion in 2027, with a reference PE of 18 times for 2026 [9]. Financial Summary - Main revenue projections for the company are as follows: - 2023: CNY 27,598 million - 2024: CNY 28,676 million - 2025: CNY 28,986 million - 2026: CNY 30,325 million - 2027: CNY 32,871 million - The growth rates for main revenue are projected at 7.0% for 2023, 3.9% for 2024, 1.1% for 2025, 4.6% for 2026, and 8.4% for 2027 [4]. - The company's EBITDA is forecasted to be CNY 5,814 million in 2023, declining to CNY 5,631 million in 2025, and then increasing to CNY 6,736 million by 2027 [4]. - The net profit attributable to shareholders is projected to decline from CNY 3,187 million in 2023 to CNY 2,472 million in 2025, before recovering to CNY 2,828 million in 2027 [4]. - The report also highlights key financial ratios, including a projected ROE of 9.0% in 2025 and an EV/EBITDA ratio of 6.4 in 2025 [4].

Core Insights - The opening of the first "Loong Store" by Li Ning in Beijing marks a significant milestone for the brand, showcasing a new store concept that integrates product experience, emotional resonance, and cultural exchange [1][3][19] Group 1: Loong Store Concept - The "Loong Store" is designed to embody the spirit of the dragon, a symbol of Chinese culture and a key design element for Li Ning since the 2000 Sydney Olympics [3][6] - The store aims to create a space for consumers that combines sports spirit, cultural depth, and immersive product experiences, focusing on themes of "Award Moments," "Competition Moments," and "Life Moments" [6][19] Group 2: Honor Gold Label Product Series - The Honor Gold Label product series is designed to reflect sports spirit and is intended for various life scenarios, promoting a positive and self-improving attitude [7][19] - The series integrates Li Ning's professional sports technology with minimalist design, catering to urban consumers' needs for high-quality attire suitable for commuting, business, and light sports [7][12] Group 3: Design and Features - The initial products in the Honor Gold Label series draw inspiration from the architectural beauty of the Beijing National Speed Skating Oval, featuring a minimalist design that emphasizes comfort and functionality [9][12] - The color scheme of black and white symbolizes the perseverance of athletes, while gold represents the glory achieved through hard work [11][12] Group 4: Market Strategy and Collaboration - The launch of the Honor Gold Label series and the Loong Store is expected to create a strong synergy, enhancing Li Ning's brand development and retail channel upgrades [19] - As an official partner of the Chinese Olympic Committee, Li Ning incorporates the committee's commercial emblem into the Honor Gold Label products, reinforcing its connection to national pride and sports culture [7][9]