HAITONG INT'L: Bullish on LI NING (02331) for its long-term brand strength and consumer mind construction. Target price raised to 22.3 Hong Kong dollars.

HAITONG INT'L released a research report stating that it maintains a "outperform" rating for LI NING (02331), with a valuation of 19 times the 2026 earnings, a 6% increase in target price to HK$22.3, and a 13.9% upside potential. LI NING's category and channel adjustments have basically been completed this year, and the company will continue to increase its resources and promotional efforts. The bank is optimistic about LI NING's investment in building long-term brand strength and consumer awareness. HAITONG INT'L expects LI NING's revenue to reach RMB 28.79 billion, RMB 30.1 billion, and RMB 31.69 billion in 2025, 2026, and 2027, respectively, with year-on-year growth rates of 0.4%, 4.5%, and 5.3%. During the period, the net profit attributable to equity shareholders is expected to be RMB 2.64 billion, RMB 2.72 billion, and RMB 3.01 billion, corresponding to price-to-earnings ratios of 17.2 times, 16.7 times, and 15.1 times.