GF SEC has issued a research report forecasting that LI NING's net profit attributable to shareholders for 2025-2027 will be RMB 2.593 billion, RMB 2.851 billion, and RMB 3.100 billion respectively, representing year-on-year changes of -13.9%, +10.0%, and +8.7%. Earnings per share are projected to be RMB 1.00, RMB 1.10, and RMB 1.20 per share for the respective years.
Based on comparable company valuations and considering the company's proactive initiatives in channels, marketing, and products since 2025, the firm is optimistic about LI NING's sustained brand momentum and performance improvement. Applying a 2026 price-to-earnings ratio of 20 and using an exchange rate of CNY/HKD=0.8879, the corresponding reasonable value is HK$24.84 per share, leading to a maintained "Buy" rating.
Key points from the report are as follows: LI NING, a leading domestic sports brand adhering to a single-brand, multi-category strategy, was founded in 1990 by Mr. Li Ning, a renowned gymnast, and was listed in 2004. The company follows a development strategy focused on a single brand, multiple categories, and diverse channels, concentrating on six core categories: running, basketball, comprehensive training, badminton, table tennis, and sports leisure. It aims to create a unique "LI NING experience value" centered around product experience, sports experience, and purchasing experience.
According to financial reports, in 2024, the company achieved revenue of RMB 28.676 billion and a net profit of RMB 3.013 billion. It operated 6,117 core brand stores and 1,468 children's stores. By channel, revenue contributions were 45.1% from distributors, 24.0% from direct-operated stores, 29.0% from franchised stores, and 1.9% from other regions. By product category, footwear accounted for 49.9% of revenue, apparel for 42.0%, and equipment and accessories for 8.1%.
Leveraging Olympic marketing, the company continues to innovate in products and channels, positioning itself for sustained growth in brand influence and performance. On the product front, it strengthens its professional technological attributes through four major technology platforms, creating popular IP items within core categories and enhancing its product matrix. In terms of channels, it actively explores new retail formats, such as outdoor concept stores and flagship "Dragon" stores, with positive expectations for the future growth potential of category-specific stores. Regarding marketing, it adheres to its single-brand, multi-category, multi-channel strategy, increasing marketing investments through sponsorships of top-tier events, collaborations with high-profile endorsers, and Olympic marketing campaigns, which are anticipated to continuously enhance brand power.