BofAS issued a report downgrading the investment rating of LI NING (02331.HK) -0.740 (-5.193%) Short selling $285.92M; Ratio 37.689% from "Buy" to "Neutral", while sharply cutting the TP by 24% from HKD20.8 to HKD15.9, equivalent to 15x forecast 2026 PE ratio. The broker noted that LI NING's gross margin in 1H exceeded expectations, while revenue and net profit grew 2.8% YoY and 4.5% YoY respectively. However, management lowered its full-year revenue growth guidance from high-single-digit growth to low-single-digit growth, while net profit margin guidance was also reduced from high-single-digit to mid-to-high-single-digit levels, implying a very weak net profit margin in 2H.

The broker turned more cautious on the 2H outlook due to weak consumer demand, the rise of vertical brands leading to a more fragmented industry landscape, and inventory clearance by Nike distributors TOPSPORTS (06110.HK) -0.020 (-1.688%) Short selling $8.80M; Ratio 37.878% and POU SHENG INT'L (03813.HK) +0.005 (+1.299%) in response to Nike's termination of their online platform channel rights from January 2027, which has brought discount pressure. Meanwhile, the continued rise in advertising and promotion expense ratios further reduced earnings visibility. The broker therefore cut its 2026 and 2027 EPS forecasts by 19% and 24% respectively, and expected more earnings forecast downgrades ahead. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-21 16:25.)