CICC: Keeping Li Ning (02331) outperforming the industry rating and upgrading the target price to HK$23.61

The Zhitong Finance App learned that CICC released a research report saying that as the new Olympic cycle begins, Li Ning (02331) is gradually experimenting with new product lines and new store types, which is expected to continue to enhance the brand's influence in the minds of consumers. The bank kept the 2025/26 EPS forecast of 0.92/1.07 unchanged, and the current stock price corresponds to 18/16 times the 2025/26 price-earnings ratio; at the same time, due to the launch of new stores and products, the bank is optimistic about the growth trend of the Li Ning brand in the next 2-3 years and raised the target price by 4% to HK$23.61, corresponding 24/20 times the 2025/26 price-earnings ratio. There is 29% room for improvement compared to the current stock price, maintaining an industry performance rating.

CICC's main views are as follows:

The company's recent situation

The Li Ning brand's first dragon store in the world opened on December 14 in Taikoo Li, Sanlitun, Beijing. At the same time, Li Ning launched a new Honor Gold Label series of products. The bank believes that this move is a further strengthening of the company's Olympic product matrix layout.

Dragon store showcased the brand's new image

The Li Ning Long Store links the iconic design symbols of the Li Ning brand with traditional culture, while also emphasizing the status of the Li Ning brand as an official partner of the Chinese Olympic Committee. In the store, Li Ning comprehensively explains the brand culture and product expertise for consumers around the three themes of “Award Time”, “Competition Time”, and “Life Time”.

Launched a new Honor Gold Standard series to meet consumers' multi-functional and multi-scene wear needs

The Li Ning Honor Gold Series combines Li Ning's professional sports technology with consumers' daily commuting needs, and provides consumers with a new high-quality choice for their daily urban commuting with a stylish and simple design. The bank believes that the Honor Gold Series will enrich Li Ning's product matrix and reach more consumers in addition to emphasizing core sports functional products.

Smooth iteration of core products

In addition to the new product line, Li Ning also recently launched the new running shoe midsole technology “Super Capsule”, as well as new versions of the core running shoe products “Feiden” and “Red Rabbit”. Athletes sponsored by Li Ning frequently reached the podium in top domestic and international events such as the Tokyo Half Horse and Valencia Marathon in 2025, showing strong overall strength. The bank believes that continuous iteration of core functionality will allow Li Ning to continue to maintain a leading position in the field of professional sports and strengthen the brand's sports genes.

Risk warning: Consumer love is declining, industry competition is intensifying, and the terminal retail environment falls short of expectations.