Core Viewpoint - Starting in 2024, Li Ning will actively reduce the scale of its direct-operated stores and control store area, leading to a recovery in direct operating profit margin from approximately 10% in 2023 to mid-teens by the first half of 2025 [1] Group 1: Store Strategy - The company plans to reduce the number of direct-operated stores while maintaining a stable wholesale channel and a slight increase in franchise stores, indicating a gradual recovery in dealer confidence [1] - By the end of 2025, the company will launch "Dragon Stores" and outdoor specialty stores that incorporate Olympic elements, aiming for precise market segmentation through store type differentiation [1] Group 2: Financial Outlook - If brand momentum improves, existing store efficiency and discount rates are expected to enhance operational leverage, potentially driving a new round of channel expansion [1] - The company is viewed as a leading domestic sports brand with an upward operational reversal expectation, long-term profit growth potential, and ample cash reserves [1] Group 3: Valuation - The report maintains a reasonable valuation range for the company at HKD 21.2 to 22.3, corresponding to a price-to-earnings ratio of approximately 19 to 20 times for 2026, and retains an "outperform" rating [1]

Core Viewpoint - Li Ning has launched its first "Loong Store" in Beijing, themed "Dragon's Glory," alongside the release of the new Honor Gold Label product series, aiming to integrate sports spirit with daily life and enhance consumer experience [1][6][17]. Group 1: Loong Store Concept - The Loong Store is designed to embody product experience, emotional resonance, and cultural exchange, named after the "Dragon," a significant symbol in Chinese culture and Li Ning's brand identity [3][6]. - The store will focus on three themes: "Award Moments," "Competition Moments," and "Life Moments," providing a space for consumers to engage with sports culture and experience [6][17]. Group 2: Honor Gold Label Product Series - The Honor Gold Label series emphasizes sports spirit and aims to integrate high-quality, multifunctional apparel into everyday life, catering to urban consumers' diverse needs [7][11]. - The product line features a minimalist design inspired by the architectural beauty of the Beijing National Speed Skating Oval, utilizing high-quality materials and ergonomic cuts for comfort and performance [9][11]. - The series includes shoes that reflect the perseverance of athletes, with color themes of black, white, and gold symbolizing the journey and achievements in sports [11][15]. Group 3: Strategic Implications - The launch of the Loong Store and the Honor Gold Label series is seen as a significant milestone for Li Ning, enhancing retail channel upgrades and expanding the brand's consumer base across various sports categories [17].