Western Securities issued a research report that Li Ning Co. Ltd. (02331) has experienced a complete industry development cycle in the past 30 years. The bank roughly divides the cycle into three stages, namely, the cycle crisis accumulation stage, the cycle crisis outbreak stage and the cycle recovery stage, and explores the future value of the company from the cycle point of view.

Through the cycle, the bank pointed out, look at the growth of Li Ning Co. Ltd. company. 1) Li Ning Co. Ltd. 's large goods exhibition store space and store efficiency space has great potential, with an estimated offline income of about 26.6 billion yuan (RMB, the same below) and online income of about 12.2 billion yuan in 2024. 2) Li Ning Co. Ltd. YOUNG layout of children's category, is expected to become the second growth curve, the bank expects the number of Li Ning Co. Ltd. YOUNG stores in 2024 will be 1362, the annual store efficiency is expected to exceed 1.4 million yuan, the scale and volume will gradually increase.

The bank is optimistic about the company's brand power and channel power to improve the logic, showing a strong growth toughness in the long and short term. Revenue in 2022-24 is expected to be 269.2 picket 328.7 / 40.68 billion yuan, an increase of 19.3%, 22.1%, 23.8%, and net profit of 46.6, 56.8 / 6.94 billion yuan, an increase of 16.2%, 21.9%, 22.1%. Based on the relative valuation method, the company's target price is HK $76.7, and the closing price on December 5, 2022 has 21.0% room to rise, covering it for the first time and giving it a "buy" rating.