Li Ning Company Limited (HK:2331)
:2331
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Li Ning Company
(2331)
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Rating:76Outperform
Price Target:
HK$23.00
▲(5.89% Upside)
Action:ReiteratedDate:10/29/25
Li Ning Company's strong financial performance and reasonable valuation are key strengths, supported by a solid earnings call. However, technical indicators suggest potential short-term weakness, and challenges in certain product categories could impact future growth.
Positive Factors
Strong balance sheet and low leverage
Very low financial leverage and a high equity ratio give Li Ning durable financial flexibility. This capital structure supports investment in product development, channel optimization, and marketing, while reducing refinancing and solvency risk through cyclical slowdowns over the next 2–6 months.
Negative Factors
Apparel revenue decline
A falling apparel top line weakens category diversification and cross-selling potential. If apparel underperformance persists, it could cap overall revenue growth, raise inventory risk, and force deeper promotional activity that erodes margins over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and low leverage
Very low financial leverage and a high equity ratio give Li Ning durable financial flexibility. This capital structure supports investment in product development, channel optimization, and marketing, while reducing refinancing and solvency risk through cyclical slowdowns over the next 2–6 months.
Read all positive factors
Li Ning Company (2331) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$56.09B
Dividend Yield3.83%
Average Volume (3M)15.81M
Price to Earnings (P/E)15.1
Beta (1Y)1.19
Revenue Growth4.12%
EPS Growth-7.17%
CountryHK
Employees5,022
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.52
Shares Outstanding2,584,813,700
10 Day Avg. Volume14,017,045
30 Day Avg. Volume15,805,178
Financial Highlights & Ratios
PEG Ratio-2.71
Price to Book (P/B)1.53
Price to Sales (P/S)1.39
P/FCF Ratio10.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$25.00Price Target Upside15.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)1.18
Revenue Forecast (FY)HK$31.76B
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 generates revenue through multiple streams, primarily from the sale of its branded sportswear and footwear. The company operates retail stores, e-commerce platforms, and wholesale distribution channels, allowing it to reach a broad custome...
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
85
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.15B | 28.68B | 27.60B | 25.80B | 22.57B | 14.46B |
| Gross Profit | 14.34B | 14.16B | 13.35B | 12.48B | 11.97B | 7.09B |
| EBITDA | 6.22B | 6.12B | 6.31B | 6.97B | 6.53B | 3.31B |
| Net Income | 2.80B | 3.01B | 3.19B | 4.06B | 4.01B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 36.78B | 35.71B | 34.21B | 33.65B | 30.27B | 14.59B |
| Cash, Cash Equivalents and Short-Term Investments | 17.05B | 15.76B | 8.94B | 8.03B | 15.15B | 7.19B |
| Total Debt | 1.78B | 1.94B | 2.54B | 2.14B | 1.32B | 1.05B |
| Total Liabilities | 9.61B | 9.60B | 9.80B | 9.31B | 9.17B | 5.90B |
| Stockholders Equity | 27.17B | 26.10B | 24.41B | 24.33B | 21.10B | 8.69B |
Cash Flow | ||||||
| Free Cash Flow | 3.52B | 3.76B | 2.87B | 2.08B | 5.50B | 2.02B |
| Operating Cash Flow | 4.95B | 5.27B | 4.69B | 3.91B | 6.53B | 2.76B |
| Investing Cash Flow | 3.14B | -839.62M | -2.45B | -9.48B | -6.54B | -991.55M |
| Financing Cash Flow | -2.33B | -2.32B | -4.22B | -1.89B | 7.60B | -513.49M |
Li Ning Company Technical Analysis
Positive
21.72
Price Trends
21.07
Positive
19.67
Positive
18.35
Positive
Market Momentum
0.23
Negative
55.99
Neutral
57.66
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 21.72 is above the 20-day moving average (MA) of 20.75, above the 50-day MA of 21.07, and above the 200-day MA of 18.35, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 55.99 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$56.09B | 15.11 | 10.64% | 3.83% | 4.12% | -7.17% | |
69 Neutral | HK$4.76B | 8.02 | 19.99% | 7.41% | 11.18% | -1.06% | |
68 Neutral | HK$223.60B | 15.20 | 21.07% | 3.10% | 13.55% | 13.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | HK$325.17M | -7.10 | -37.46% | 4.17% | -13.08% | -21.27% | |
41 Neutral | HK$115.46M | -5.42 | -26.02% | ― | 157.17% | 39.38% | |
41 Neutral | HK$397.89M | -18.05 | -10.23% | ― | -5.36% | -63.16% |
* Consumer Cyclical Sector Average
HK:2331
Li Ning Company
21.72
8.24
61.10%
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Li Ning Company Corporate Events
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...
Li Ning Posts Slight Q4 Sell-Through Decline as Youth Stores Expand
Jan 15, 2026
Li Ning Company Limited reported a modest softening in its core retail performance for the fourth quarter of 2025, with overall retail sell-through at LI-NING branded points of sale (excluding LI-NING YOUNG) declining by a low single digit year-on...
Li Ning Sets 2026 Caps for Connected Transactions Under Restricted Share Scheme
Jan 5, 2026
Li Ning Company has set new annual caps for 2026 under its Restricted Share (RS) Scheme, which is used to purchase company shares from the open market to satisfy the vesting of restricted shares granted to employees and other selected participants...
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.