In "Major Banks," China International Capital Corporation raised the target price for LI NING to 24.4 yuan and upgraded the earnings per share forecast

CICC published a report stating that Li Ning (02331.HK) announced its fourth-quarter operating conditions, with Li Ning brand (excluding Li Ning YOUNG) full-platform retail revenue declining low single digits year-on-year, and a net decrease of 41 retail points in the single quarter. The retail environment in the fourth quarter remained weak, with discounts deepening year-on-year, but revenue growth improved on a quarter-on-quarter basis, and inventory returned to a healthy level.

The report indicated that Li Ning's profit margin performance in 2025 is outstanding, and it looks forward to continuous iterations of new products and new store formats in 2026. Management stated that with the help of new categories such as badminton, revenue in 2025 is expected to achieve slight growth, and due to good cost control and other factors, the net profit margin is expected to fall at the upper end of the high single-digit guidance. The year 2026 is an important year with a dense schedule of major events, and the company will iterate new products and new store formats around the themes of the Olympics and sports technology, while also actively carrying out supporting marketing activities. The firm is optimistic about the enhancement of the company's brand power during the Olympic cycle and believes that the new product lineup is expected to provide new sources of growth for the company.

CICC noted that considering the company's good cost control in 2025 and continued investment in 2026, it raised the earnings per share forecast for 2025/2026 by 14% and 3% to RMB 1.05 and 1.10, respectively, and introduced a 2027 earnings per share forecast of RMB 1.19, raising the target price by 3% to HKD 24.4, maintaining an "outperform the industry" rating