External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

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<ul><li>1H25 net profit dropped YoY, but the core operating profit started to grow again.</li><li>With a potentially tougher outlook in 2H25E, we have revised down our net profit forecasts, but given Li Ning’s efforts on turnaround and the intrinsic value of the brand, we maintain our BUY rating.</li><li>Performance from Jul to MTD in Aug 2025 was weak, and therefore the risks of higher retail discounts and store closures are still there. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H25 net profit dropped YoY, but the core operating profit started to grow again.With a potentially tougher outlook in 2H25E, we have revised down our net profit forecasts, but given Li Ning’s efforts on turnaround and the intrinsic value of the brand, we maintain our BUY rating.Performance from Jul to MTD in Aug 2025 was weak, and therefore the risks of higher retail discounts and store closures are still there. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning (2331 HK) - Still Positive Despite All Margin Drags in 2H25E

<ul><li>2Q25 retail sales were inline, but the margin was likely a miss.</li><li>Together with the deteriorated outlook for 2H25E (even though the FY25E guidance was maintained), we should be more cautious.</li><li>However, given Li Ning’s efforts for turnaround and the intrinsic value of the brand, as well as its undemanding valuation at 15x FY25E P/E, we maintain our BUY rating</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2Q25 retail sales were inline, but the margin was likely a miss.Together with the deteriorated outlook for 2H25E (even though the FY25E guidance was maintained), we should be more cautious.However, given Li Ning’s efforts for turnaround and the intrinsic value of the brand, as well as its undemanding valuation at 15x FY25E P/E, we maintain our BUY ratingContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning (2331 HK) - 2Q25 Roughly Inline and Transition in Progress

<ul><li>1Q25 results were roughly inline and FY25E guidance was maintained; therefore we maintain our BUY rating and TP.</li><li>However, the inventory level in 1Q25 actually deteriorated QoQ and YoY, plus the rather weak management comments on Apr 2025, and we thus have turned slightly more cautious about 2Q25E outlook.</li><li>The stock is trading at 14x FY25E P/E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1Q25 results were roughly inline and FY25E guidance was maintained; therefore we maintain our BUY rating and TP.However, the inventory level in 1Q25 actually deteriorated QoQ and YoY, plus the rather weak management comments on Apr 2025, and we thus have turned slightly more cautious about 2Q25E outlook.The stock is trading at 14x FY25E P/E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning (2331 HK) - A Cautious Outlook After a Maintained Guidance

<ul><li>In the short run, we are still quite cautious about Li Ning in 2H24E, because of: 1) risks of greater retail discounts or promotion, 2) risks of trade fair orders adjustments, 3) unfavorable channel mix and operating deleverage and 4) relatively fixed opex.</li><li>However, from the long run prospective, we can still see the value in Li Ning, esp. when we consider its ex-cash FY24E P/E, which is only at 5-6x (excluding the net cash of RMB 17.6bn, in fact, we can also adjust for its RMB2.0-3.0bn worth of property investment in HK &amp; SH).</li><li>Maintain BUY but trim our TP to HK$ 16.18, based on 12x FY24E P/E (cut from 15x, to factor in the industry de-rating). It is trading at 10x FY24E P/E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In the short run, we are still quite cautious about Li Ning in 2H24E, because of: 1) risks of greater retail discounts or promotion, 2) risks of trade fair orders adjustments, 3) unfavorable channel mix and operating deleverage and 4) relatively fixed opex.However, from the long run prospective, we can still see the value in Li Ning, esp. when we consider its ex-cash FY24E P/E, which is only at 5-6x (excluding the net cash of RMB 17.6bn, in fact, we can also adjust for its RMB2.0-3.0bn worth of property investment in HK &amp; SH).Maintain BUY but trim our TP to HK$ 16.18, based on 12x FY24E P/E (cut from 15x, to factor in the industry de-rating). It is trading at 10x FY24E P/E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning (2331 HK) - We See Long-Term Value but Short-Term Risks

<ul><li>Li Ning may not be our top pick in the sportswear sector.</li><li>But thanks to potential sequential acceleration in sales growth and decent margin improvement (better discounts and operating leverage), we are still positive on Li Ning and maintain BUY with TP of HK$ 22.17, based on 15x FY24E P/E.</li><li>The 2024 outlook is constructive, as we see some upsides on sales growth and margins.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning may not be our top pick in the sportswear sector.But thanks to potential sequential acceleration in sales growth and decent margin improvement (better discounts and operating leverage), we are still positive on Li Ning and maintain BUY with TP of HK$ 22.17, based on 15x FY24E P/E.The 2024 outlook is constructive, as we see some upsides on sales growth and margins.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Li Ning (2331 HK) - Healthy Outlook After a Beat in Retail Discounts

China

Li Ning Company Limited researches, designs, manufactures, distributes, and retails sports footwear, apparel and accessories for sport and leisure use.

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Li Ning (2331 HK)

Li Ning (2331 HK) - Still Positive Despite All Margin Drags in 2H25E

With a potentially tougher outlook in 2H25E, we have revised down our net profit forecasts, but given Li Ning’s efforts on turnaround and the...

CMB International

Li Ning (2331 HK) - 2Q25 Roughly Inline and Transition in Progress

2Q25 retail sales were inline, but the margin was likely a miss. Together with the deteriorated outlook for 2H25E (even though the FY25E guidance...

CMB International

Li Ning (2331 HK) - A Cautious Outlook After a Maintained Guidance

1Q25 results were roughly inline and FY25E guidance was maintained; therefore we maintain our BUY rating and TP. However, the inventory level in...

CMB International

Li Ning (2331 HK) - We See Long-Term Value but Short-Term Risks

Maintain BUY but trim our TP to HK$ 16.18, based on 12x FY24E P/E (cut from 15x, to factor in the industry de-rating). It is trading at 10x FY24E P/E.

CMB International

Li Ning (2331 HK) - Healthy Outlook After a Beat in Retail Discounts

We also see some room for margin improvements, because the retail discounts is healthily improving (esp. in direct retail and e-commerce segment)

CMB International

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