HK Stock Market Move | LI NING (02331) rises over 5% again, introducing Red Dragon China to establish a joint venture company to develop the brand's overseas market business.

LI NING (02331) rose by over 5% in the early trading session, reaching a 5.04% increase by the time of publication, with a price of 17.52 Hong Kong dollars and a trading volume of 2.46 billion Hong Kong dollars. On the news front, LI NING recently announced that the group's indirectly wholly-owned subsidiary LN Co, LI NING himself through his fully owned company Founder Co, and Hongshan Venture and HongShan Motivation under Sequoia China signed a subscription and shareholder agreement to establish a joint venture company with 2 billion Hong Kong dollars, holding 29%, 26%, 31%, and 14% respectively, for the purpose of developing overseas markets. GF SEC believes that there is still significant room for development in the domestic and international sports footwear and apparel industry, and the company's exploration of overseas markets is promising. Huatai also noted that looking ahead to the fourth quarter, benefiting from the National Day holiday and seasonal demand, it is expected that the company's 4Q24 growth rate will surpass that of the previous three quarters. The company is currently in an adjustment period, aiming to improve management efficiency by optimizing product mix. We anticipate an improvement in the mid-term trend, with the overseas market expected to continue to grow, maintaining a "buy" rating.