JPMorgan has issued a research report highlighting two key signals it has been monitoring for LI NING's (02331) recovery. The first is whether the company can regain market share after consistent losses since 2022, and the second is its ability to achieve relatively effective cost control. JPMorgan has raised its profit forecasts for LI NING for 2026 to 2027 by 9% to 12%. It anticipates that LI NING will achieve 8% sales growth and 7% profit growth in 2026. The target price has been increased from HK$14.6 to HK$25.6, and the rating has been upgraded from "Underweight" to "Overweight." The report indicates that LI NING is now demonstrating both of these positive signals. The bank's view on the company has turned positive, partly due to a 13% year-on-year profit increase in the second half of 2025, which exceeded its own forecast by 17% and market expectations by 28%. This was primarily driven by cost optimization in direct retail channels and higher-than-expected government subsidies, which offset rising promotional expenses. Additionally, the sales guidance for 2026 is positive, with expectations of high single-digit growth. This suggests that LI NING will achieve market share growth in 2026, ending the persistent market share losses since 2022.