Jingu Financial News | Tianfeng Securities issued a research report, as of 24Q3, li ning (02331) total number of sales points (excluding li ning YOUNG) reached 6281, a net increase of 42 compared to the end of the previous quarter, with a net increase of 41 so far this year. Out of the 41 net increase in sales points, retail decreased by 14, while wholesale increased by 55. The number of li ning YOUNG sales points reached a total of 1459, a net increase of 21 from the end of the previous quarter, and a net increase of 31 so far this year.
The bank pointed out that on October 22nd, Li Ning Group announced the establishment of a joint venture company through its indirectly wholly-owned subsidiary LN Co with Founder Co, HongShan Venture, and HongShan Motivation, aimed at exclusively developing and operating the Li Ning brand business (including selling Li Ning branded products) outside mainland China. At the same time, Li Ning Group and founder Li Ning collectively hold a 55% stake in the joint venture company, effectively safeguarding the reputation of the 'Li Ning' brand and maintaining sufficient influence over the joint venture company. The introduction of Sequoia Capital China allows the joint venture company to share Sequoia Capital China's cross-border resources and cross-border business experience, helping to accelerate the development and efficiency of the joint venture company.
Based on the retail and discount performance in 24Q3, macro factors such as certain uncertainty in the consumption environment, the bank has adjusted its profit forecast. The bank expects the company's revenue for 2024-2026 to be 28.4 billion RMB, 29.8 billion RMB, and 31.8 billion RMB respectively (previously 29 billion RMB, 31.3 billion RMB, 34.4 billion RMB); net income attributable to shareholders for 2024-2026 to be 3.1 billion RMB, 3.5 billion RMB, and 4 billion RMB respectively (previously 3.2 billion RMB, 3.4 billion RMB, 3.8 billion RMB); and EPS for 2024-2026 to be 1.2 RMB, 1.4 RMB, and 1.5 RMB respectively, with PE ratios of 12x, 11x, and 9x. Maintain a buy rating for the company with a target price of HK$15.5.
