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Li Ning Company
(2331)
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Rating:68Neutral
Price Target:
HK$16.00
▲(17.91% Upside)
Action:Downgraded
Date:08/06/26
The score is driven by strong financial quality (low leverage and robust cash flow) and supportive valuation (moderate P/E with a high dividend yield). These positives are tempered by weak technicals—price below key long-term moving averages and negative MACD—suggesting the market trend remains pressured despite solid fundamentals.
Positive Factors
Conservative Balance Sheet
Very low leverage (D/E ~0.08) and a large equity base give Li Ning durable financial flexibility. This limits insolvency risk, supports capital allocation for stores, product development, and dividends, and buffers cyclical retail volatility over the next 2–6 months.
Negative Factors
Revenue Softening
A slight revenue decline in 2025 (~-1%) signals a weakening top-line momentum after prior expansion. If demand softness persists, it could constrain operating leverage, slow market-share gains, and limit the company’s ability to reaccelerate growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage (D/E ~0.08) and a large equity base give Li Ning durable financial flexibility. This limits insolvency risk, supports capital allocation for stores, product development, and dividends, and buffers cyclical retail volatility over the next 2–6 months.
Read all positive factors
Li Ning Company (2331) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$33.73B
Dividend Yield5.19%
Average Volume (3M)30.70M
Price to Earnings (P/E)9.7
Beta (1Y)1.00
Revenue Growth6.64%
EPS Growth11.99%
CountryHK
Employees5,152
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)1.15
Shares Outstanding2,584,813,700
10 Day Avg. Volume44,654,772
30 Day Avg. Volume30,702,959
Financial Highlights & Ratios
PEG Ratio-5.74
Price to Book (P/B)1.57
Price to Sales (P/S)1.47
P/FCF Ratio9.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$19.58Price Target Upside44.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering26
EPS Forecast (FY)0.93
Revenue Forecast (FY)HK$30.38B
Li Ning Company Business Overview & Revenue Model
Company Description
Operating within the People's Republic of China, Li Ning Company Limited is a comprehensive sporting goods enterprise involved in every stage from product innovation and design to manufacturing, marketing, distribution, and retail. Under its flags...
How the Company Makes Money
Li Ning primarily makes money by selling branded sporting goods—especially footwear and apparel—through multiple sales channels. The company’s main revenue stream is sales of finished products to consumers and channel partners, supported by brand-...
Li Ning Company Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2027
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company showed growth in revenue and strong performance in the footwear and accessories segments, particularly in e-commerce and professional running shoes. However, challenges were evident in the apparel and basketball categories, with declining gross profit and net margins. The company's strategic partnerships and strong cash position are positive indicators for future growth.Positive Updates
Revenue Growth
Revenue grew by 3.3% to RMB 14.817 billion, and net operating cash inflow stood at RMB 24.11 billion.
Negative Updates
Decrease in Apparel Revenue
Apparel revenue decreased by 3% year-on-year.
Read all updates
Q2-2025 Updates
Positive
Negative
Revenue Growth
Revenue grew by 3.3% to RMB 14.817 billion, and net operating cash inflow stood at RMB 24.11 billion.
Read all positive updates
Company Guidance
During the call, Li Ning Company Limited provided several key financial and operational metrics for the first half of 2025. The company reported a revenue growth of 3.3%, reaching RMB 14.817 billion, with a net profit of RMB 1.737 billion and a net profit margin of 11.7%. The gross profit margin slightly decreased by 0.4 percentage points to 50%. The company maintained a healthy financial condition, with a net operating cash inflow of RMB 24.11 billion and an average working capital percentage of 7.3% relative to revenue. The Board of Directors proposed an interim dividend of RMB 0.3359 per share, maintaining a dividend payout ratio of 50%. Retail sales for the LI-NING main brand experienced low single-digit growth across all channels, while footwear revenue grew by 5% year-on-year, accounting for 56% of total revenue. In contrast, apparel revenue decreased by 3%, and accessories revenue increased by 24%, driven by the Badminton category, which grew by 38% and contributed 7% to the group's total revenue. Online sales outperformed offline sales, with e-commerce revenue rising by 1 percentage point to 31% of total revenue. The company also noted a slight decrease in direct retail revenue share to 23%, while wholesale revenue share increased by 1 percentage point to 46%. Despite a challenging market environment, Li Ning continued to focus on channel optimization and strategic investment in core product categories and brand development to drive long-term growth.Li Ning Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.81B | 29.60B | 28.68B | 27.60B | 25.80B | 22.57B |
| Gross Profit | 14.72B | 14.49B | 14.16B | 13.35B | 12.48B | 11.97B |
| EBITDA | 4.91B | 4.95B | 6.12B | 6.31B | 6.97B | 6.53B |
| Net Income | 2.99B | 2.94B | 3.01B | 3.19B | 4.06B | 4.01B |
Balance Sheet | ||||||
| Total Assets | 38.43B | 37.73B | 35.71B | 34.21B | 33.65B | 30.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.22B | 17.82B | 15.76B | 8.94B | 8.03B | 15.15B |
| Total Debt | 2.48B | 2.09B | 1.94B | 2.54B | 2.14B | 1.32B |
| Total Liabilities | 9.78B | 10.09B | 9.60B | 9.80B | 9.31B | 9.17B |
| Stockholders Equity | 28.65B | 27.64B | 26.10B | 24.41B | 24.33B | 21.10B |
Cash Flow | ||||||
| Free Cash Flow | 3.37B | 4.59B | 3.76B | 2.87B | 2.08B | 5.50B |
| Operating Cash Flow | 4.06B | 5.79B | 5.27B | 4.69B | 3.91B | 6.53B |
| Investing Cash Flow | -805.65M | 5.35B | -839.62M | -2.45B | -9.48B | -6.54B |
| Financing Cash Flow | -2.24B | -2.07B | -2.32B | -4.22B | -1.89B | 7.60B |
Li Ning Company Technical Analysis
Negative
13.57
Price Trends
13.98
Negative
15.66
Negative
17.41
Negative
Market Momentum
-0.23
Negative
40.17
Neutral
16.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2331, the sentiment is Negative. The current price of 13.57 is above the 20-day moving average (MA) of 13.43, below the 50-day MA of 13.98, and below the 200-day MA of 17.41, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2331.
Li Ning Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$4.28B | 7.29 | 14.04% | 9.46% | 9.74% | -22.94% | |
75 Outperform | HK$200.00B | 10.87 | 23.72% | 3.57% | 16.64% | 12.58% | |
68 Neutral | HK$33.73B | 9.66 | 10.62% | 5.19% | 6.64% | 11.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | HK$317.61M | -2.17 | -48.47% | 4.76% | 9.95% | 35.41% | |
43 Neutral | HK$121.65M | -8.42 | -13.08% | 65.07% | 6.16% | 52.99% | |
41 Neutral | HK$228.20M | -20.53 | -2.60% | ― | 11.94% | 54.84% |
* Consumer Cyclical Sector Average
HK:2331
Li Ning Company
13.01
-4.25
-24.64%
HK:2020
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72.45
-17.62
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0.77
-0.37
-32.46%
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6.35
-6.75
-51.54%
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Matrix Holdings Limited
0.42
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-19.23%
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0.04
>-0.01
-11.36%
Li Ning Company Corporate Events
Li Ning Posts Modest Q2 Sell-Through Decline as Store Mix Shifts Toward Youth and Online
Jul 15, 2026
Li Ning reported that retail sell-through at LI-NING points of sale, excluding LI-NING YOUNG, declined by a low-single-digit percentage year-on-year in the second quarter of 2026, reflecting pressure in offline channels. Direct retail and wholesal...
Li Ning Extends 2016 Share Awards and Launches New 2026 Incentive Scheme
Jul 14, 2026
Li Ning Company Limited, a major Chinese sportswear and athletic apparel producer listed on the Hong Kong Stock Exchange, derives its revenue from the design, manufacture, and sale of sports footwear, apparel, and related accessories. The company ...
Li Ning Shareholders Approve All AGM Resolutions, Confirming Dividend and Board Mandates
Jun 11, 2026
Li Ning Company Limited reported that all resolutions proposed at its 11 June 2026 annual general meeting were approved by shareholders, including adoption of the 2025 audited financial statements, a final dividend of RMB23.36 cents per share, and...
Li Ning Sets Final 2025 Dividend and Confirms Hong Kong Payout Terms
Jun 11, 2026
Li Ning Company Limited has declared a final ordinary dividend of RMB 0.2336 per share for the financial year ended 31 December 2025, following shareholder approval on 11 June 2026. For investors holding shares via the Hong Kong register, the defa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.