Jinwu Financial News | According to Dongwu Securities Research Report, Li Ning (02331) released 2024Q1 business data: 1) Li Ning (excluding YOUNG): 24Q1 omni-channel retail traffic increased by a low number of units, same-store sales declined year-on-year, and the turnover performance was better than that of the same store, mainly due to differences in statistical caliber. The omni-channel traffic statistics include the efficient store flow contribution of newly opened stores during the 23Q1-24Q1 period. As of the end of 24Q1, Li Ning (excluding young) stores were 6,214, a net increase of 8 stores compared to the end of 23Q1. 2) Li Ning Young: 24Q1 omni-channel traffic increased by single digits year-on-year (due to the high 23Q1 base). By the end of 24Q1, Li Ning Young had 1,405 stores, a net increase of 152 compared to the end of 23Q1. The year-on-year increase in omni-channel traffic was low in number of units. Among them, e-commerce sales performed better than offline, and direct management performed better than wholesale. Overall same-store sales declined year-on-year. Among them, e-commerce grew faster, wholesale same-store declined more, and the number of stores increased slightly year-on-year. Stock sales ratios and discounts both improved year over year.
The bank continued that the company is a leading domestic sportswear company. Performance was pressured by inventory pressure and trading in '23. Along with the timely rectification of the trade issue, there has been a slight increase in turnover since 24Q1, inventory and discounts have improved year on year, and overall business quality has improved. Looking at the whole year, due to the high Q2 base, the bank expects some pressure on Q2 operations and is expected to grow faster in the second half of the year than in the first half of the year. The company maintained the double-digit performance guidelines of keeping the number of units and profit margins low in 24-year revenue growth. Considering the impact of the 23-year smuggling problem on terminal sales, the bank lowered the 24-25 net profit forecast from 4,53/5.43 billion yuan to 33.9/3.78 billion yuan, and increased the 26-year forecast value of 4.02 billion yuan. The corresponding PE was 14/12/12X, maintaining a “buy” rating.