The endophytic extension of 22Q3 goes hand in hand. 22Q3 retail pipelining increased by 10% in the middle segment compared with the same period last year, of which direct marketing / wholesale / e-commerce increased by 20% in the low segment / 10% in the low segment / 20% in the middle segment. In terms of the same store, 22Q3 Li Ning store achieved high unit growth, and direct sales / wholesale / e-commerce increased the number of units / high units / 10% Rue 20% respectively compared with the same period last year. In terms of stores, as of the end of 22Q3, the number of Li Ning Co. Ltd. stores was 6101, a net increase of 166compared with the beginning of the year (direct sales increased by 179/ wholesale decreased by 13), and Li Ning Co. Ltd. YOUNG increased by 36 to 1238.
The growth rate of direct operation is higher than that of wholesale, and the shop structure continues to be optimized. We believe that the growth rate of the company's 22Q3 direct operation is higher than that of wholesale, mainly due to the continuous net addition of new stores by ①, and ② continues to promote the strategy of opening big stores and closing small ones. According to Sina Financial reports, Li Ning Co. Ltd. opened more than 100 stores nationwide between the end of September and 10max 07 (a total of 16 flagship stores and benchmarking stores, with more than 45% of the stores exceeding 300ping).
Under the challenge of the retail environment, the same store still achieved steady growth. We believe that in the case of the impact of passenger flow, the company's same-store growth mainly comes from the improvement of product prices and customer unit prices, through strengthening professional positioning, continue to optimize product price bands and consumer conversion efficiency. 22H1's footwear revenue increased by 47% over the same period last year, basketball increased by 30%, and running increased by 10%, achieving an effective focus on core categories.
Judge that the inventory situation is still stable. In the case of increasing inventory ahead of time, 22H1 has an overall inventory ratio of 3.6and channel inventory of 6 months or less accounts for 88%, an increase of 5pct over the same period last year. Under the severe challenges of the retail environment of 22Q2, it reflects the strong brand potential energy and operational capacity. We judge that 22Q3's inventory is still stable, and the operating indicators have strong resilience in the face of the challenges faced by the retail environment.
Continue to broaden the emerging e-commerce platform to achieve online diversified layout. On the basis of stabilizing the operation of traditional e-commerce platforms such as Tmall and JD.com, the company expanded Douyin, Wechat, online shopping malls and other emerging channels to achieve multi-dimensional development, and established a cross-functional communication mechanism with offline business to strengthen omni-channel integration and coordination. As of 22H1, the number of members of the company has exceeded 46 million, and the sales contribution of members has increased by a high number of units.
Profit forecast and valuation. We expect the company to make a net profit of HK $4.67 billion in 2023, giving the 2022 PE valuation range of 30-32X, based on the conversion of HK $1 = RMB0.92, corresponding to a reasonable value range of HK $58.0461. 91 per share, maintaining a "better than the market" rating.
Risk hint. The same store and online growth rate is lower than expected, China Li Ning potential can be weakened, strategic uncertainty caused by management changes, and the sale of blockbuster products is not as expected.