Li Ning Faces Lower Earnings as Margins Remain Under Pressure -- Market Talk

Dow Jones
2025/07/16

0418 GMT - Chinese sportswear company Li Ning's weaker-than-expected 2Q operational data has turned CGS International analysts bearish on the stock, as they cut their rating to hold from add. The analysts expect profit margins to remain under pressure in FY 2025, as the company had to offer more discounts in 2Q due to weaker consumer sentiment. The company says a higher distribution expense ratio from Olympics-related expenses may also affect earnings. "Li Ning needs some time to further adjust its product profile and improve its Olympics-related marketing investment," the analysts write in a note. CGS trims its FY 2025-FY 2027 EPS forecasts by 13.1%-16.5% and lowers its target price to HKS$17.30 from HK$22.40. Shares were last at HK$15.88. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

July 16, 2025 00:18 ET (04:18 GMT)

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