The Zhitong Finance App learned that Anxin International released a research report stating that it maintains Li Ning's (02331) “buy” rating and predicts EPS of 1.30/1.45/1.59 yuan in 2024/2025/2026, with a target price of HK$28.3. The company's performance in the first quarter was basically in line with market expectations, and the guidance for the whole year will also be maintained. As inventory levels return to health, the bank believes the company's growth will return to a steady level. With the arrival of the Paris Olympics, the company will also launch a series of marketing activities to raise the brand's voice.
The bank said that Li Ning's 24Q1 e-commerce channel exceeded expectations, and the running category performed well. Retail sales volume across all platforms of 24Q1 Li Ning (excluding Li Ning YOUNG) increased by a lower number of units compared to the same period, mainly affected by the high base during the same period, and overall in line with the company's expectations. By channel, e-commerce recorded a low level of 20%-30% year-on-year growth, and the performance exceeded expectations, mainly driven by the return of online traffic and the company's marketing integration and brand building. There are also big differences in the performance of different online platforms. Among them, Obu grew by more than 100%, Douyin grew by more than 20%, JD grew by double digits, and Tmall grew by a high number of units. Although the growth rate of the Tmall platform has slowed, it still accounts for the largest share of revenue, accounting for more than 1/3 of revenue. Based on the high base impact of the same period last year, children's clothing recorded an increase in the number of units, and store efficiency remained the same as in the same period last year.