Walter Woo, an analyst from CMB International Securities, maintained the Buy rating on Li Ning Company. The associated price target was raised to HK$23.02.
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Walter Woo has given his Buy rating due to a combination of factors that suggest potential for Li Ning Company despite current challenges. The company’s net profit showed a year-over-year decline in the first half of 2025, yet there was a resurgence in core operating profit, indicating a positive shift in the company’s operational efficiency.
Moreover, while there are concerns about retail discounts and store closures due to weak performance from July to mid-August 2025, Li Ning’s management has maintained their guidance for the fiscal year 2025. This includes expectations for stable sales growth and a healthy net profit margin. The company’s efforts to enhance product lines and introduce new offerings are seen as potential growth drivers, although they may be tempered by a challenging economic environment and a potential slowdown in e-commerce. Despite these hurdles, the brand’s intrinsic value and strategic initiatives underpin the Buy rating.
In another report released yesterday, DBS also reiterated a Buy rating on the stock with a HK$25.20 price target.