Investment Rating - The investment rating for Li Ning is "Buy" with a target price of HK$18.10, representing an expected share price return of 3.1% and an expected total return of 6.0% [3][5]. Core Insights - Li Ning's retail sales growth during the 11.11 Festival was in line with management's expectations, and the company has maintained its 2025 full-year guidance of year-on-year flattish sales with high single-digit net profit margin [1][2]. - The company aims to balance channel inventory control and retail discounting, with a target to reduce the channel-inventory-to-retail-sales ratio to 4-5x by the end of Q4 2025, likely closer to 4x [1][2]. - Management remains pragmatic about the business outlook for 2026, focusing on growing running and fitness categories, enhancing sports-casual products, and increasing footwear sales mix to over 60% from the current 50% [2]. - Li Ning has launched COC-themed products in Q4 2025, divided into three categories: Award Ceremony Outfit, Gold Label, and mass-market products, with expectations for stronger growth in COC products in 2026-2027 [2]. Summary by Sections Retail Sales and Guidance - Retail sales growth during the 11.11 Festival was in line with expectations, maintaining 2025E guidance of flattish sales and high single-digit net profit margin [1][2]. Inventory Management - The company is focused on controlling channel inventories and retail discounts, aiming for a channel-inventory-to-retail-sales ratio of 4-5x by the end of Q4 2025 [1][2]. Product Strategy - Li Ning is enhancing its focus on running and fitness categories, sports-casual products, and footwear, with a target to increase footwear sales mix to over 60% [2]. COC Product Launches - The company has launched COC-themed products in Q4 2025, with expectations for growth in 2026-2027, supported by branding campaigns around the Milan Winter Olympics 2026 [2].