Jinwu Financial News | According to CMB International Development Research Report, Li Ning (02331) announced operating figures for the 1st quarter of '24. The low number of units in retail turnover and the inventory sales ratio of 4 to 4.5 months were all in line with expectations, but retail discounts (whether online or offline) improved by a lower number of units compared to the fourth quarter of '23, which meant that the month-on-month improvement was low to medium units, slightly better than expected. Looking ahead, on the one hand, the company did not adjust the annual guidelines (medium unit sales growth and low double-digit net profit margin). On the other hand, the outlook for the next few quarters remains positive.
According to the bank, the current price was 13 times the projected price-earnings ratio for FY25, maintaining the buying rating, and the target price was lowered from HK$24.86 to HK$22.17. The bank is optimistic about the stock price because the company's fundamentals have improved month-on-month. However, since sales and profit growth is still slow this year, and the appeal is currently relatively low, Li Ning is not the bank's first choice in the sports industry.