Jingu Financial News | Haitong Securities released research reports, indicating that in Q3 2024, Li Ning (02331) saw a decrease in in-store sales at the mid-level range, while offline sales dropped slightly compared to Q2. E-commerce sales maintained positive growth in the first three quarters of this year. The bank determines that this is partly due to the shift of customer traffic from offline to online, and on the other hand, e-commerce channels with high product value for money are more popular. In addition, the bank believes that currently the company's high-level market stores will mainly focus on adjustment and a few closures, while there are still opportunities to explore white-space markets at lower levels, and distribution is expected to continue steadily opening stores.

The bank mentioned that the company announced the establishment of a joint venture company with Red Shirt Capital to be responsible for the overseas operation and promotion of the Li Ning brand. At this stage, the bank expects to mainly focus on markets in Southeast Asia and countries along the Belt and Road initiative.

The bank pointed out that the company insists on stable operation and healthy development to further expand its influence in the professional sports market, continuously optimize channel structure, and improve operational efficiency. The bank expects the company's net income attributable to shareholders for 2024/2025 to be 3.17/3.37 billion yuan, giving a PE valuation range of 13-15X for 2024. Based on an exchange rate of 1 Hong Kong dollar = 0.92 yuan, the corresponding reasonable value range is 17.33-19.99 yuan/share, maintaining an 'outperform the market' rating.