- Li Ning‘s net income for the fiscal year was 3.01 billion yuan, falling short of expectations of 3.1 billion yuan.
- The company’s revenue reached 28.68 billion yuan, surpassing the estimate of 28.14 billion yuan.
- Footwear revenue amounted to 14.30 billion yuan, exceeding the forecasted 14.02 billion yuan.
- Apparel revenue was slightly below predictions, coming in at 12.05 billion yuan versus an estimate of 12.09 billion yuan.
- Revenue from equipment and accessories was 2.33 billion yuan, markedly surpassing the estimate of 1.95 billion yuan.
- Operating profit was noted at 3.68 billion yuan, higher than the expected 3.52 billion yuan.
- Li Ning achieved a gross margin of 49.4%, slightly above the projected 49%.
- EBITDA stood at 6.38 billion yuan, significantly outpacing the estimate of 5.4 billion yuan.
- The company reported inventory days at 64.
- A final dividend of 20.73 RMB cents per share was announced.
- Analyst ratings for Li Ning include 35 ‘buy’ recommendations, 11 ‘hold’, and 2 ‘sell’.
Li Ning on Smartkarma
Li Ning, a prominent company in the sportswear industry, has recently garnered analyst coverage on Smartkarma, an independent investment research network. According to Janaghan Jeyakumar, CFA, in his report titled “Quiddity Leaderboard HSCEI Mar25,” there is an expectation for Li Ning (2331 HK) to be removed from the HSCEI index. This insight also highlights the addition of China Resources Power (836 HK) to the index, emphasizing that both companies offer favorable trading volumes. The HSCEI index, reflecting the performance of top 50 “Mainland China” securities listed in Hong Kong, is set for changes in March 2025, with Li Ning facing a potential exclusion.
The analysis provided by Janaghan Jeyakumar, CFA, leans towards a bullish sentiment regarding Li Ning‘s position in the HSCEI index. The expert anticipates a single change in the index, with Li Ning predicted to be the company removed. This focused research on Smartkarma sheds light on the dynamic nature of index rebalancing events and their impact on individual companies such as Li Ning. Investors and stakeholders monitoring the performance of Li Ning within the Hong Kong market can gain valuable insights from this research, guiding their investment decisions based on the anticipated index changes.
A look at Li Ning Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Li Ning Company Limited, a leading sports brand focusing on research, design, and retail of sports footwear, apparel, and accessories, is evidencing a strong long-term outlook according to the Smartkarma Smart Scores. With an impressive score of 5 in Dividend and Resilience, the company showcases stability and commitment to shareholders. This underscores its ability to weather market fluctuations and provide consistent returns to investors over time.
Moreover, Li Ning scores high in Value with a rating of 4, indicating that the company is deemed undervalued in relation to its intrinsic worth. Combined with a Growth score of 3 and Momentum score of 3, Li Ning demonstrates potential for future expansion and sustainable performance. This holistic assessment suggests that Li Ning is well-positioned for growth and resilience in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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