In "Major Banks," China International Capital Corporation raised the target price for LI NING to 27.5 yuan due to good operations, maintaining an "outperform industry" rating

According to a research report by China International Capital Corporation (CICC), Li Ning (02331.HK) is expected to achieve a 3% year-on-year revenue growth to RMB 29.6 billion in 2025, while net profit attributable to shareholders is projected to decline by 3% year-on-year to RMB 2.9 billion. The performance is better than the bank's expectations, mainly due to good cost control. The company declared a final dividend of 23.36 cents, corresponding to an annual payout ratio of 50%.

Due to the company's strong operational performance, the bank has raised its earnings per share forecasts for 2026 and 2027 by 9% and 10%, to RMB 1.19 and RMB 1.31, respectively. The current stock price corresponds to 16 times and 14 times the forecasted price-to-earnings ratios for 2026 and 2027, maintaining an "outperform" rating. The continued improvement in operational conditions has led to an increase in valuation, prompting the bank to raise the target price by 13% to HKD 27.5