Core Viewpoint - The company reported a 3% revenue growth but an 11% decline in profit for the first half of 2025, with a focus on optimizing channel structure and investing in marketing resources for events like the Olympics, while maintaining a target for stable revenue and high single-digit net profit margin by 2025 [1][3] Revenue and Profit Performance - The company's revenue increased by 3.3% year-on-year to 14.817 billion, while net profit decreased by 11% to 1.737 billion; the board proposed an interim dividend of 0.3359 per share, with a payout ratio of 50% [1][3] Category Performance - In the first half of 2025, the running and training categories achieved a 15% growth, with professional running shoes sales exceeding 14 million pairs; however, basketball sales declined by 20% [1][2] Channel Performance - E-commerce revenue grew by 7% to 4.3 billion (29% of total), while offline direct sales fell by 3% to 3.4 billion (23% of total); franchise revenue increased by 4% to 6.9 billion (47% of total) [2] Store Performance - As of June 2025, the total number of stores was 7,534, a decrease of 143 stores year-on-year; the average store size for flagship stores was 242 square meters, with an average monthly sales of 300,000, slightly down from 310,000 in the first half of 2024 [2] Inventory Management - The company's channel inventory grew at a low single-digit rate year-on-year, maintaining a healthy inventory-to-sales ratio of 4 months, with 82% of channel inventory being new products within 6 months [2] Profitability Analysis - The gross margin decreased by 0.4 percentage points to 50%, while the management and sales expense ratio fell by 0.7 percentage points to 34.2%; the operating profit margin also declined by 0.2 percentage points to 16.5% [3] Future Projections - The management maintains a target for stable revenue by 2025, with projected revenues of 28.74 billion, 29.96 billion, and 31.11 billion for 2025-2027, reflecting growth rates of 0%, 4%, and 4% respectively; net profit projections are 2.38 billion, 2.53 billion, and 2.72 billion, with year-on-year growth rates of -21%, 7%, and 7% [1][3]

Investment Rating - The report maintains a strong buy rating for the company [4][8] Core Views - The company experienced a revenue growth of 3% in H1 2025, but net profit declined by 11%. The running category showed good growth, and the management is committed to optimizing channel structure and investing in Olympic marketing resources. The management maintains a guidance for flat revenue and a high single-digit net profit margin for 2025 [1][8] - The projected net profit for 2025-2027 is estimated at 2.38 billion, 2.53 billion, and 2.72 billion yuan, with year-on-year growth rates of -21%, 7%, and 7% respectively. The current stock price corresponds to a PE of 20 times for 2025 [1][8] Revenue Breakdown - E-commerce revenue grew by 7% to 4.3 billion yuan in H1 2025, accounting for 29% of total revenue. Offline direct sales revenue decreased by 3% to 3.4 billion yuan, representing 23% of total revenue, while franchise revenue increased by 4% to 6.9 billion yuan, making up 47% of total revenue [2] Store Performance - As of June 2025, the total number of stores was 7,534, a decrease of 143 stores year-on-year. The average store area for flagship stores was 242 square meters, with an average monthly sales of 300,000 yuan, slightly down from 310,000 yuan in H1 2024 [2] Inventory Management - The company's channel inventory increased by a low single-digit percentage year-on-year, maintaining a healthy inventory-to-sales ratio for four consecutive months. New products within six months accounted for 82% of the channel inventory [2] Financial Performance - The company reported a revenue of 14.817 billion yuan in H1 2025, a 3.3% year-on-year increase, while net profit decreased by 11% to 1.737 billion yuan. The board proposed an interim dividend of 0.3359 yuan per share, with a payout ratio of 50% [7][8] - The gross margin slightly declined by 0.4 percentage points to 50%, while the operating profit margin decreased by 0.2 percentage points to 16.5% [8] Profitability Forecast - The company is expected to maintain its focus on Olympic and technological advancements to enhance brand influence and diversify product offerings. Revenue and profit are under pressure due to weak consumer demand and intensified market competition. The projected revenue for 2025-2027 is 28.744 billion, 29.956 billion, and 31.112 billion yuan, with growth rates of 0%, 4%, and 4% respectively [8][9]

Core Insights - Li Ning reported a revenue of 14.817 billion yuan for the first half of 2025, representing a year-on-year growth of 3.3% [1] - The footwear segment continues to grow, with badminton products achieving a structural breakthrough, supported by a strategic partnership with the Chinese Olympic Committee (COC) [1] Footwear and Badminton Segment - Footwear revenue reached 8.231 billion yuan, up 4.9% year-on-year, accounting for 55.6% of total revenue, marking a 0.9 percentage point increase from the previous year [2] - The "超䨻" technology has been fully applied to core categories like running and basketball shoes, leading to significant product innovations [2] - The "越影5PRO" running shoe features a midsole bounce ratio of 10.8, balancing cushioning and rebound performance [2] - Total sales of three core running shoe IPs exceeded 5.26 million pairs, with the "飞电" family achieving an energy return rate of 89% after upgrading to the "超䨻" midsole [2] - The basketball shoe "ULTRALIGHT2025" has sold over 100,000 pairs since its launch, aided by marketing strategies [2] Apparel and Equipment - Apparel revenue was 5.193 billion yuan, accounting for 35% of total revenue, down 3.4% year-on-year [3] - Equipment and accessories revenue surged by 23.7% to 1.393 billion yuan, making it the fastest-growing segment [3] - The badminton category has transitioned from "apparel-driven" to "professional equipment-led," with a focus on technology and research [3] Strategic Partnerships and Marketing - The partnership with COC is seen as a long-term strategic move rather than a short-term marketing tactic, aimed at building brand professionalism [4] - Li Ning has made significant adjustments to its retail presence, enhancing consumer recognition of its partnership with COC [4] - The company is preparing for major upcoming events like the 2028 Olympics and 2026 Winter Olympics, aligning product development and marketing strategies accordingly [5] Channel and Sales Performance - As of June 30, the total number of Li Ning sales points was 7,534, with a slight net decrease but improved operational efficiency [6] - Online sales reached 4.3 billion yuan, growing 7.4% year-on-year, and accounting for 29% of total revenue [6] - The integration of online and offline channels has led to increased brand visibility and sales performance [6]

李宁还在继续维稳。 3月28日，李宁公司发布2024年财报，全年营收286.76亿元，同比增长3.9%；净利润30.13亿元，同比下跌5.46%；集团整体毛利率49.4%，较去年提升1个百 分点。 业内普遍认为，李宁全年的业绩符合预期。 摩根士丹利称，李宁净利润下滑是因为"投资物业"减值的拖累。市场会正面解读业绩结果，这意味着，该公司的盈利可能优于部分投资者的预期。 财报发布后，李宁股价走高，盘中涨超6%创周内最高，当日报收17.16港元/股。 | | 截至12月31日止年度 | | 變動 | | --- | --- | --- | --- | | | 2024年 | 2023年 | (%) | | 收益表項目 | | | | | (除特別註明外,所有金額均以千元人民幣列示) | | | | | 收入 | 28.675.643 | 27.598.491 | 3.9 | | 毛利 | 14,156,103 | 13.352.055 | 6.0 | | 經營利 糧 | 3,678,206 | 3.559.087 | 3.3 | | 息稅前利潤加折舊及攤鎖(EBITDA)(附註1) | 6,379,193 | 6. ...

Core Viewpoint - 2024 is a significant year for sports, with Li Ning demonstrating strong financial performance and brand improvement, positioning itself for future growth as a new sponsor for the Chinese Olympic Committee [1][8]. Financial Performance - Li Ning achieved revenue of 28.676 billion RMB, a year-on-year increase of 3.9% [2]. - The net profit reached 3.013 billion RMB, with a net profit margin of 10.5% [2]. - Gross profit was 14.156 billion RMB, up 6.0% from the previous year, with an overall gross margin of 49.4%, an increase of 1 percentage point [2]. Operational Highlights - Li Ning's operating cash flow was 5.27 billion RMB, a year-on-year increase of 12.4%, indicating strong risk resilience and efficient supply chain management [3]. - The inventory turnover days were 64 days, with a cash cycle of 35 days, reflecting healthy inventory management [3]. - R&D expenditure increased by 9.4%, outpacing revenue growth, highlighting a commitment to innovation and product competitiveness [3]. Strategic Focus - Li Ning is deepening its focus on professional fields and product categories, enhancing brand value and long-term competitiveness [5]. - The company is concentrating on six core categories: basketball, running, fitness, badminton, table tennis, and sports lifestyle, with a comprehensive product layout [6]. - In basketball, Li Ning launched several successful models, including the "伽马" series, which topped annual basketball shoe rankings [6]. Brand and Market Positioning - Li Ning became the official strategic partner of the Chinese Men's Professional Basketball League in 2024, enhancing its brand recognition [7]. - The company has achieved significant success in running, with retail sales increasing by 25% year-on-year, and has sold over 10.6 million running shoes [6][7]. - The upcoming Olympic cycle starting in 2025 is expected to further strengthen Li Ning's brand image and market position [8]. Conclusion - Li Ning's solid performance reflects a strategic recalibration, focusing on operational quality, technological depth, and brand potential, setting the stage for a new growth cycle [8][9].