Daiwa has released a research report maintaining its "Outperform" rating and a target price of HK$15.1 on LI NING (02331). Based on channel checks, the company's retail sales for August are estimated to have turned slightly positive, supported by improved weather and KOL livestreaming activity, although demand remains weak once these factors are stripped out. The brokerage suggests that even a modest sequential improvement could help lift share price performance.

Looking ahead to September, Daiwa expects further sequential improvements, driven by the Mid-Autumn Festival holiday and the Stephen Curry China tour. The firm projects that Curry-related products will not contribute significant sales and earnings growth until 2028. Due to the strategic partnership with Curry and other sports event sponsorships, Daiwa has raised its second-half advertising expense forecast by RMB 600 million. Given that the contract with Curry only took effect on June 2, the brokerage estimates that second-half promotional spending may exceed initial expectations.

Regarding Viva Goods' recent increase in its stake in LI NING, Daiwa notes that Viva's prior share purchases have effectively driven stock prices in the short term, and this latest acquisition further demonstrates its long-term confidence in the company.