Li Ning Company (2331) AI Stock Analysis

• Market Cap: $48.79B
• Dividend Yield: 3.98%
• Average Volume (3M): 27.28M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.37
• Revenue Growth: 4.12%
• EPS Growth: -7.17%
• Country: HK
• Employees: 5,022
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Leisure
• EPS (TTM): 0.74
• Shares Outstanding: 2,584,811,000
• 10 Day Avg. Volume: 38,278,717
• 30 Day Avg. Volume: 27,279,530
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 4.43
• 1Y Price Target: $20.04
• Price Target Upside: 8.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 79 Outperform
• Price Target: HK$23.00 ▲(24.26% Upside)

Li Ning Company's strong financial performance and bullish technical indicators are the primary drivers of its stock score. While valuation metrics are favorable, overbought technical conditions and mixed earnings call sentiment introduce some caution. The absence of significant corporate events maintains focus on existing financial and operational metrics.

Positive Factors

Brand Development

Li Ning's continual efforts on product innovation, branding, and channel upgrades are seen as positive factors for a potential turnaround.

Growth Opportunities

There is potential for growth driven by steady demand in the running and outdoor-wear categories, as well as investment in the upcoming Milan Cortina Winter Olympics.

Market Position

Li Ning is a leading domestic sportswear brand in China with a market share of 10.3%.

Negative Factors

E-commerce Performance

E-commerce sales growth in July 2025 was worse than in June 2025 and the second quarter of 2025.

Margin Concerns

Rising pressure for more retail discounts to destock could lead to a year-over-year drop in gross profit margin.

Sales Pressure

There are sales pressures still noted in July and August despite positive developments.

Li Ning Company Business Overview & Revenue Model

Company Description

Li Ning Company Limited engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China. The company offers sporting goods, including footwear, apparel, equipment, and accessories for professional and leisure purposes primarily under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton under the Kason brand name. As of December 31, 2021, the company operated 7,137 conventional stores, flagship stores, China LI-NING stores, factory outlets, and multi-brand stores under the LI-NING brand. Li Ning Company Limited was founded in 1990 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Li Ning generates revenue through multiple key streams, primarily through the sale of its sportswear products, including footwear, apparel, and accessories, which are distributed through a combination of direct sales and a network of franchised retail stores. The company also earns income from e-commerce platforms and partnerships with third-party retailers. In addition to its core product lines, Li Ning has leveraged strategic collaborations and endorsements with athletes and sports teams, enhancing brand visibility and driving sales. The company has invested in marketing initiatives and sponsorships, which not only elevate brand awareness but also attract a wider customer base, contributing to its overall revenue growth.

Li Ning Company Financial Statement Overview

Summary

Li Ning Company exhibits strong financial health with robust revenue growth, high profitability, and a solid balance sheet. Effective cost management and strong cash flow generation further enhance its financial position, despite slight declines in net income.

Income Statement

Li Ning Company demonstrated strong revenue growth, with a 3.9% increase in the latest year. The gross profit margin remained robust at 49.4%, and the net profit margin was healthy at 10.5%. However, there was a slight decline in net income compared to the previous year. EBIT and EBITDA margins were strong, reflecting effective cost management.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.07, indicating low financial leverage. The equity ratio of 73.1% reflects a strong capital structure. Return on equity stood at 11.5%, demonstrating effective use of equity capital.

Cash Flow

Li Ning's cash flow position is strong, with a 31.1% increase in free cash flow. The operating cash flow to net income ratio is 1.75, showing strong cash generation relative to earnings. The free cash flow to net income ratio is 1.25, indicating efficient cash conversion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.68B	27.60B	25.80B	22.57B	14.46B
Gross Profit	14.16B	13.35B	12.48B	11.97B	7.09B
EBITDA	6.12B	6.31B	6.97B	6.53B	3.31B
Net Income	3.01B	3.19B	4.06B	4.01B	1.70B
Balance Sheet
Total Assets	35.71B	34.21B	33.65B	30.27B	14.59B
Cash, Cash Equivalents and Short-Term Investments	15.76B	8.94B	8.03B	15.15B	7.19B
Total Debt	1.94B	2.54B	2.14B	1.32B	1.05B
Total Liabilities	9.60B	9.80B	9.31B	9.17B	5.90B
Stockholders Equity	26.10B	24.41B	24.33B	21.10B	8.69B
Cash Flow
Free Cash Flow	3.76B	2.87B	2.08B	5.50B	2.02B
Operating Cash Flow	5.27B	4.69B	3.91B	6.53B	2.76B
Investing Cash Flow	-839.62M	-2.45B	-9.48B	-6.54B	-991.55M
Financing Cash Flow	-2.32B	-4.22B	-1.89B	7.60B	-513.49M

Li Ning Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2331, the sentiment is Positive. The current price of 18.51 is above the 20-day moving average (MA) of 18.14, above the 50-day MA of 17.23, and above the 200-day MA of 16.19, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2331.

Li Ning Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2331	79 Outperform	$48.79B	16.13	10.53%	3.98%	4.12%	-7.17%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
ANPDF	―	$34.30B	17.27	25.06%	2.37%	―	―

Li Ning Company Corporate Events

Li Ning Schedules Board Meeting for Interim Results and Dividend Decision

Li Ning Company Limited has announced that its board of directors will convene on August 21, 2025, to approve the interim results for the first half of the year and consider declaring an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting its market positioning and stakeholder interests.

Li Ning Grants Over 11 Million Share Options to Directors and Participants

Li Ning Company Limited has announced the grant of 11,017,500 share options to certain directors and eligible participants under its Share Option Scheme. These options, representing approximately 0.43% of the total shares in issue, are exercisable at a price of HK$16.14 per share and are subject to a vesting schedule from 2026 to 2029. The announcement highlights the company’s commitment to aligning the interests of its management and stakeholders, potentially enhancing its market positioning and operational effectiveness.

Li Ning Reports Modest Growth in Q2 2025 Amid Retail Adjustments

Li Ning Company Limited reported a low-single-digit increase in retail sell-through for the second quarter of 2025, with e-commerce showing mid-single-digit growth, despite a decline in offline retail channels. The total number of Li Ning POS in China saw a net decrease, reflecting strategic adjustments in their retail operations.

Li Ning Company Limited Secures Shareholder Approval for Key Resolutions at AGM

Li Ning Company Limited announced the successful passage of all resolutions at its Annual General Meeting held on June 12, 2025. Key resolutions included the adoption of financial statements, declaration of a final dividend, and re-election of directors. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

Li Ning Announces Final Dividend for 2024

Li Ning Company Limited has announced a final cash dividend of RMB 0.2073 per share for the financial year ending December 31, 2024. The dividend, approved on June 12, 2025, will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.093, amounting to HKD 0.2266 per share. The ex-dividend date is set for June 16, 2025, with the payment date scheduled for June 27, 2025. This announcement reflects the company’s financial health and commitment to delivering shareholder value.

Li Ning Enhances Audit Committee Governance

Li Ning Company Limited has outlined the terms of reference for its Audit Committee, emphasizing the importance of governance and oversight in its operations. The committee, composed solely of non-executive directors, is tasked with maintaining the integrity of financial reporting and ensuring the independence of the external auditor. This move is aimed at strengthening the company’s audit processes and enhancing transparency, which is crucial for maintaining investor confidence and regulatory compliance.

Li Ning Company Updates Remuneration Committee Terms

Li Ning Company Limited has updated the terms of reference for its Remuneration Committee, which is responsible for advising on the remuneration policies for directors and senior management. The committee, composed mainly of independent non-executive directors, will ensure fair and transparent remuneration practices, aligning with corporate goals and industry standards, while safeguarding against conflicts of interest.

Li Ning Updates Nomination Committee Terms to Strengthen Governance

Li Ning Company Limited has revised the terms of reference for its Nomination Committee, which is responsible for formulating nomination policies for Board members and Senior Management. The committee’s duties include reviewing the Board’s structure, size, and diversity, evaluating the Group’s organizational strategy, and recommending suitable candidates for directorships and senior management positions. These changes aim to enhance the company’s governance and ensure alignment with its corporate strategy.

Li Ning Company Announces AGM and Key Resolutions for 2025

Li Ning Company Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 12, 2025, in Hong Kong. Key resolutions include the adoption of the 2024 financial statements, the declaration of a final dividend, re-election of independent non-executive directors, and the appointment of Ernst & Young as the company’s auditor. Additionally, the company seeks shareholder approval for a general mandate to issue additional shares, which could impact its capital structure and market positioning.