Li Ning Company Limited (HK:2331)
:2331
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Li Ning Company
(2331)
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Rating:73Outperform
Price Target:
HK$22.50
▲(7.24% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by strong financial fundamentals (low leverage and robust cash generation) and supportive valuation (low P/E and solid dividend yield). Offsetting these positives, technical indicators show weak momentum with the stock trading below key moving averages and a negative MACD, despite oversold readings suggesting potential near-term stabilization.
Positive Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (≈0.08) and a conservative capital structure provide durable financial flexibility. This reduces solvency risk, supports continued investment in stores, product and marketing, and preserves the ability to withstand demand shocks or pursue strategic initiatives over the next several months.
Negative Factors
Near-term revenue slowdown
A small revenue decline in 2025 interrupts multi-year expansion and signals a loss of top-line momentum. Over the coming months this can compress operating leverage, limit margin recovery and require targeted product or channel initiatives to reaccelerate growth versus peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (≈0.08) and a conservative capital structure provide durable financial flexibility. This reduces solvency risk, supports continued investment in stores, product and marketing, and preserves the ability to withstand demand shocks or pursue strategic initiatives over the next several months.
Read all positive factors
Li Ning Company (2331) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$52.22B
Dividend Yield3.83%
Average Volume (3M)15.81M
Price to Earnings (P/E)9.2
Beta (1Y)1.16
Revenue Growth3.24%
EPS Growth-2.77%
CountryHK
Employees5,022
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.53
Shares Outstanding2,584,813,700
10 Day Avg. Volume14,017,045
30 Day Avg. Volume15,805,178
Financial Highlights & Ratios
PEG Ratio-2.95
Price to Book (P/B)1.56
Price to Sales (P/S)1.50
P/FCF Ratio9.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$25.02Price Target Upside19.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)1.18
Revenue Forecast (FY)HK$31.82B
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, equipmen...
How the Company Makes Money
Li Ning primarily makes money by selling branded sports footwear, apparel, and accessories. Its revenue model is built on two main channel types: (1) direct-to-consumer (DTC) sales, where it sells through self-operated retail stores and e-commerce...
Li Ning Company Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company showed growth in revenue and strong performance in the footwear and accessories segments, particularly in e-commerce and professional running shoes. However, challenges were evident in the apparel and basketball categories, with declining gross profit and net margins. The company's strategic partnerships and strong cash position are positive indicators for future growth.Positive Updates
Revenue Growth
Revenue grew by 3.3% to RMB 14.817 billion, and net operating cash inflow stood at RMB 24.11 billion.
Negative Updates
Decrease in Apparel Revenue
Apparel revenue decreased by 3% year-on-year.
Read all updates
Q2-2025 Updates
Positive
Negative
Revenue Growth
Revenue grew by 3.3% to RMB 14.817 billion, and net operating cash inflow stood at RMB 24.11 billion.
Read all positive updates
Company Guidance
During the call, Li Ning Company Limited provided several key financial and operational metrics for the first half of 2025. The company reported a revenue growth of 3.3%, reaching RMB 14.817 billion, with a net profit of RMB 1.737 billion and a net profit margin of 11.7%. The gross profit margin slightly decreased by 0.4 percentage points to 50%. The company maintained a healthy financial condition, with a net operating cash inflow of RMB 24.11 billion and an average working capital percentage of 7.3% relative to revenue. The Board of Directors proposed an interim dividend of RMB 0.3359 per share, maintaining a dividend payout ratio of 50%. Retail sales for the LI-NING main brand experienced low single-digit growth across all channels, while footwear revenue grew by 5% year-on-year, accounting for 56% of total revenue. In contrast, apparel revenue decreased by 3%, and accessories revenue increased by 24%, driven by the Badminton category, which grew by 38% and contributed 7% to the group's total revenue. Online sales outperformed offline sales, with e-commerce revenue rising by 1 percentage point to 31% of total revenue. The company also noted a slight decrease in direct retail revenue share to 23%, while wholesale revenue share increased by 1 percentage point to 46%. Despite a challenging market environment, Li Ning continued to focus on channel optimization and strategic investment in core product categories and brand development to drive long-term growth.Li Ning Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.83B | 28.68B | 27.60B | 25.80B | 22.57B |
| Gross Profit | 14.11B | 14.16B | 13.35B | 12.48B | 11.97B |
| EBITDA | 4.82B | 6.12B | 6.31B | 6.97B | 6.53B |
| Net Income | 2.86B | 3.01B | 3.19B | 4.06B | 4.01B |
Balance Sheet | |||||
| Total Assets | 37.73B | 35.71B | 34.21B | 33.65B | 30.27B |
| Cash, Cash Equivalents and Short-Term Investments | 17.82B | 15.76B | 8.94B | 8.03B | 15.15B |
| Total Debt | 2.09B | 1.94B | 2.54B | 2.14B | 1.32B |
| Total Liabilities | 10.09B | 9.60B | 9.80B | 9.31B | 9.17B |
| Stockholders Equity | 27.64B | 26.10B | 24.41B | 24.33B | 21.10B |
Cash Flow | |||||
| Free Cash Flow | 4.59B | 3.76B | 2.87B | 2.08B | 5.50B |
| Operating Cash Flow | 5.79B | 5.27B | 4.69B | 3.91B | 6.53B |
| Investing Cash Flow | 5.35B | -839.62M | -2.45B | -9.48B | -6.54B |
| Financing Cash Flow | -2.07B | -2.32B | -4.22B | -1.89B | 7.60B |
Li Ning Company Technical Analysis
Neutral
20.98
Price Trends
21.23
Negative
20.02
Positive
18.62
Positive
Market Momentum
0.16
Positive
46.38
Neutral
10.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2331, the sentiment is Neutral. The current price of 20.98 is below the 20-day moving average (MA) of 21.51, below the 50-day MA of 21.23, and above the 200-day MA of 18.62, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2331.
Li Ning Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$52.22B | 9.20 | 10.64% | 3.83% | 3.24% | -2.77% | |
70 Outperform | HK$4.99B | 8.02 | 19.99% | 7.41% | 9.62% | -6.18% | |
68 Neutral | HK$231.09B | 15.20 | 21.07% | 3.10% | 13.33% | -12.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | HK$325.17M | -2.22 | -37.46% | 4.17% | 5.77% | 45.19% | |
41 Neutral | HK$114.05M | -2.90 | -26.02% | ― | 12.34% | -8.02% | |
41 Neutral | HK$304.27M | -18.05 | -10.23% | ― | -27.65% | -800.00% |
* Consumer Cyclical Sector Average
HK:2331
Li Ning Company
20.06
5.94
42.08%
HK:2020
ANTA Sports Products
81.50
-7.11
-8.03%
HK:1803
Beijing Sports and Entertainment Industry Group
0.08
-0.01
-11.96%
HK:1126
Dream International
7.42
2.23
43.08%
HK:1005
Matrix Holdings Limited
0.40
-0.10
-20.68%
HK:0361
Sino Golf Holdings Limited
0.06
0.02
75.00%
Li Ning Company Corporate Events
Li Ning Sets 2026 AGM to Approve Dividend, Board Mandates and Share Issuance Cap
Apr 22, 2026
Li Ning Company Limited has called its annual general meeting for 11 June 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on the re-election of directors, their remune...
Li Ning Posts Modest Q1 2026 Sell-Through Growth Amid Store Network Optimization
Apr 22, 2026
Li Ning reported that retail sell-through for its LI-NING branded points of sale in China, excluding LI-NING YOUNG, grew by a mid-single-digit percentage year-on-year in the first quarter of 2026. Offline channels saw mid-single-digit growth, driv...
Li Ning Delivers Modest 2025 Growth With Solid Cash Flow and Stable Inventory
Mar 19, 2026
Li Ning Company Limited reported a 3.2% increase in revenue to RMB29.6 billion for 2025, with gross profit margin edging down to 49% and net profit attributable to shareholders slipping to RMB2.94 billion, implying a net margin of 9.9%. The group ...
Li Ning Announces Final Dividend for 2025 Financial Year
Mar 19, 2026
Li Ning Company Limited has announced a final ordinary cash dividend of RMB 0.2336 per share for the financial year ended 31 December 2025, subject to shareholder approval on 11 June 2026. The ex-dividend date is set for 15 June 2026, with the rec...
Li Ning Issues Clarification on Annual Results Board Meeting Notice
Mar 10, 2026
Li Ning Company Limited has issued a clarification regarding a previous announcement on the date of its upcoming board meeting, correcting a typographical error in the English version related to the description of its financial results for the yea...
Li Ning Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 9, 2026
Li Ning Company Limited has scheduled a board meeting for 19 March 2026 to review and approve the group’s financial results for the year ended 31 December 2025. At the same meeting, directors will also consider whether to recommend a final d...
Li Ning Invests RMB1.9 Billion in Low-Risk Structured Deposits
Jan 26, 2026
Li Ning Company Limited has deployed a total of RMB1.9 billion of surplus cash into low-risk structured deposit products through several wholly owned subsidiaries between 18 and 26 January 2026. The funds were placed with major Chinese banks, incl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.