Jinwu Financial News | According to the Huaxi Securities Research Report, Li Ning (02331) announced 2024Q1 operating data: low unit growth in omnichannel traffic, with low unit decline/20-30% lower offline/online unit growth, and retail/wholesale growth in medium units/medium units respectively, that is, franchisees are still being removed from inventory.
The bank's projected revenue growth in 24: It is expected that the main brand will close its direct sales and franchise stores. Only children's clothing and 1990 will maintain net sales, but franchise delivery is expected to improve, and e-commerce channels are expected to gradually recover in '24. On the product side, it is expected to contribute revenue after the release of Wade 11 in the future. The net interest rate is expected to remain low in double digits in 24: the 24Q1 discount has improved; after 23 years of accruing impairment losses, there is greater profit elasticity in 24, and there is still room for improvement in non-net interest rates in the long run. In the long run, children's clothing is expected to become a new growth point. In 1990, it is still in the cultivation period. According to Sina Finance, China's Li Ning has entered the channel adjustment stage and will focus on improving store efficiency in the future. The company will focus on building the main brand's professional sports attributes, with professional sports accounting for more than half in 23 years.
The bank maintained its previous profit forecast, with an estimated operating income forecast of $292/325./36.4 billion yuan for 24/25/26, a net profit forecast of 35.7/4.23 billion yuan, corresponding to the 24/25/26 EPS forecast of $1.38/1.63/1.94, and a closing price of HK$17.5 on April 23, 2024 corresponding to HK$17.5 on 24/25/26 PE of 11/10/9 times (HK$1 = RMB 0.92), maintaining a “buy” rating.