Resilient Outlook: Walter Woo Reaffirms Buy Rating on Li Ning Company Amidst Challenges

Walter Woo, an analyst from CMB International Securities, maintained the Buy rating on Li Ning Company (LNNGF – Research Report). The associated price target remains the same with HK$19.81.

Walter Woo has given his Buy rating due to a combination of factors, despite some challenges faced by Li Ning Company. The company’s first-quarter results for 2025 were generally in line with expectations, and the guidance for the full year remains unchanged. This stability in guidance, despite macroeconomic headwinds and a challenging retail environment, suggests a level of resilience in the company’s operations.
Furthermore, the stock is trading at a relatively attractive valuation of 14 times the projected earnings for 2025, which is lower than the historical average. While there are concerns about deteriorating retail sales and increased inventory levels, the potential for government stimulus and improvements in retail discounts and channel mix could enhance future performance. As such, Walter Woo maintains a positive outlook on the stock, with a target price of HK$19.81, based on an 18 times price-to-earnings ratio for 2025.