---
title: "CICC Cuts LI NING  TP to HKD19.05, Slashes EPS Forecasts on Sales Pressure, Higher Marketing Spending"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296729072.md"
description: "CICC cut LI NING's target price to HKD19.05 and slashed EPS forecasts for 2026 and 2027 by 15% and 18%, respectively, citing sales pressure and higher marketing spending. Despite H1 revenue rising 3% YoY to RMB15.2 billion and net profit increasing 5% to RMB1.8 billion, driven by improved gross margins, the broker lowered full-year guidance due to increased selling expenses and operational burdens. CICC maintained an 'Outperform' rating."
datetime: "2026-08-24T03:01:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296729072.md)
  - [en](https://longbridge.com/en/news/296729072.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296729072.md)
generator: "portal-rs"
---

# CICC Cuts LI NING  TP to HKD19.05, Slashes EPS Forecasts on Sales Pressure, Higher Marketing Spending

CICC published a report stating that LI NING (02331.HK) -0.720 (-5.053%) Short selling $285.92M; Ratio 37.689% 's revenue for 1H26 rose 3% YoY to RMB15.2 billion, while net profit increased 5% YoY to RMB1.8 billion, with results beating the broker's expectations mainly due to better-than-expected gross margin performance.

The report noted that LI NING's profit growth exceeded expectations, while increased marketing investment drove higher selling expenses. Although discounts deepened in 1H26, gross margin rose 0.8 ppts YoY, benefiting from optimized channel structure and supply chain cost reductions. The company stepped up sports marketing investment, with the selling expense ratio increasing 1.5 ppts YoY, while the administrative expense ratio fell 0.5 ppts YoY, mainly due to impairment losses related to Kaisheng booked last year. Other gains and net finance income together declined by RMB150 million, while the effective tax rate dropped significantly, resulting in net profit attributable to shareholders rising 5% YoY to RMB1.8 billion. Operating cash flow declined significantly YoY, mainly due to increased cash expenses and prepayments related to cooperation with NBA Golden State Warriors star Stephen Curry.

The broker said LI NING still faces pressure so far in 3Q26, with management proactively controlling operational burdens to lay the foundation for healthy development. Full-year guidance was lowered to low-single-digit revenue growth YoY and a mid-to-high-single-digit net profit margin.

Considering sales pressure and increased marketing investment, the broker cut its 2026 and 2027 EPS forecasts by 15% and 18% to RMB0.86 and RMB0.96 respectively, while maintaining its Outperform rating. The TP was cut 15% to HKD19.05. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-21 16:25.)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**