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Li Ning Company
(2331)
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Rating:68Neutral
Price Target:
HK$14.00
▲(3.17% 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 reduces financial risk and interest burden, giving Li Ning greater resilience if operating conditions weaken. A strong equity-funded capital structure also preserves flexibility to invest in products, retail channels, and brand development without relying heavily on borrowing.
Negative Factors
Revenue Slowdown
The return to slight revenue contraction signals that Li Ning’s earlier growth momentum has softened. If this persists, slower sales expansion could limit operating leverage, constrain investment capacity, and make future profit improvement more dependent on cost control rather than market growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage reduces financial risk and interest burden, giving Li Ning greater resilience if operating conditions weaken. A strong equity-funded capital structure also preserves flexibility to invest in products, retail channels, and brand development without relying heavily on borrowing.
Read all positive factors
Li Ning Company (2331) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$35.51B
Dividend Yield4.91%
Average Volume (3M)15.59M
Price to Earnings (P/E)10.1
Beta (1Y)0.74
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. Volume21,190,524
30 Day Avg. Volume15,585,657
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$19.34Price Target Upside42.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)0.92
Revenue Forecast (FY)HK$30.31B
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 | 5.16B | 5.38B | 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 | 1.98B | 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 | 3.07B | 4.59B | 3.76B | 2.87B | 2.08B | 5.50B |
| Operating Cash Flow | 4.39B | 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
Neutral
13.57
Price Trends
12.94
Positive
13.84
Negative
16.65
Negative
Market Momentum
0.16
Negative
61.99
Neutral
82.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2331, the sentiment is Neutral. The current price of 13.57 is above the 20-day moving average (MA) of 12.83, above the 50-day MA of 12.94, and below the 200-day MA of 16.65, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 82.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$3.59B | 6.09 | 14.04% | 11.32% | 9.74% | -22.82% | |
75 Outperform | HK$206.39B | 11.09 | 23.92% | 3.48% | 16.64% | 12.58% | |
68 Neutral | HK$35.51B | 10.15 | 10.62% | 4.91% | 6.64% | 11.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | HK$222.35M | -27.14 | -2.60% | ― | 11.94% | 54.84% | |
46 Neutral | HK$294.92M | -2.02 | -48.47% | 5.13% | 9.95% | 35.41% | |
43 Neutral | HK$126.72M | -8.59 | -13.08% | 65.07% | 6.16% | 52.99% |
* Consumer Cyclical Sector Average
HK:2331
Li Ning Company
13.75
-2.37
-14.69%
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Li Ning Company Corporate Events
Li Ning Raises 2026 Share Scheme Caps to Bolster Talent Incentives
Sep 17, 2026
Li Ning Company Limited has raised the annual caps on share purchases for its restricted share schemes for the period from 1 January to 31 December 2026, lifting the limit to 40,000,000 shares and HK$500,000,000. The revision is designed to provid...
Li Ning Grants Long-Term Share Options to Directors and Key Staff
Aug 27, 2026
Li Ning Company Limited has granted 12,606,500 share options to directors and other eligible participants under its share option scheme adopted in June 2024. The options, representing about 0.49% of the company’s issued share capital, carry ...
Li Ning Posts Higher Revenue and Profit on Strong Margins, Declares Interim Dividend
Aug 20, 2026
Li Ning Company Limited reported solid interim results for the six months ended 30 June 2026, with revenue rising 2.8% year-on-year to RMB15.24 billion and gross profit margin improving to 50.9%. Net profit attributable to shareholders reached RMB...
Li Ning Declares Interim Dividend for First Half of 2026
Aug 20, 2026
Li Ning Company Limited has declared an interim ordinary cash dividend for the six months ended 30 June 2026, reflecting its ongoing commitment to returning cash to shareholders. The dividend is set at RMB 0.3512 per share, with Hong Kong sharehol...
Li Ning Schedules Board Meeting to Approve 2026 Interim Results and Consider Dividend
Aug 10, 2026
Li Ning Company Limited has scheduled a board meeting for 20 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider declaring an interim dividend, a decision that could signal mana...
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.