0411 GMT - Li Ning is likely to continue deepening discounts in 2H, which could put pressure on full-year gross margin, UOB Kay Hian analysts say in a note. The Chinese sportswear company's discounts across its sales channels have become bigger over 1H and into the early months of 2H, which the analysts expect to persist. The company could also face higher advertising and promotional costs related to the Chinese Olympic Committee. Meanwhile, weakening footfall at stores into 3Q may indicate 2H offline sell-through challenges, according to Li Ning's management. UOB KH downgrades Li Ning to hold from buy but leaves the target price unchanged at HK$18.90. Shares fall 2.8% to HK$17.82. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

August 27, 2025 00:11 ET (04:11 GMT)

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