Analysts at JPMorgan have issued a research note regarding LI NING (02331). The report highlights the company's recent announcement on June 2nd of a long-term partnership with four-time NBA champion, two-time NBA Most Valuable Player Stephen Curry, and his Curry Brand. The bank views this collaboration as a landmark agreement between a Chinese brand and a top-tier global NBA star, anticipating it will yield positive benefits for LI NING's brand equity, product offerings, and overseas expansion efforts. Consequently, the firm has maintained its "Overweight" rating on the stock.

Employing a discounted cash flow (DCF) valuation model, JPMorgan has set a target price of HK$25.6 for December 2026. This target price implies a valuation of 17 times the projected price-to-earnings ratio for the next 12 months.

Execution and Long-Term View

The report further notes that while the full benefits of this partnership may take time to materialize and successful execution will be a critical factor, it is expected to serve as a significant catalyst for the brand's development and future growth opportunities. However, the bank also anticipates that the financial impact of this collaboration on LI NING's fiscal year 2026 performance will likely be limited.