UBS: Upgrade LI NING (02331) rating to "buy" target price of 28.6 Hong Kong dollars. Expected acceleration in first quarter sales growth.

UBS released a research report stating that it has raised its investment rating for LI NING (02331) from "neutral" to "buy". The bank expects significant acceleration in sales growth in the first quarter of this year, with low single-digit declines turning into high single-digit increases. This growth is mainly driven by the Glory series, new outdoor categories, and strong performance in badminton and running shoe products. UBS has raised its net profit forecasts for 2025 to 2027 by 4% to 7%, and the target price has been raised from HK$21.8 to HK$28.6, equivalent to a forecast price-to-earnings ratio of 18 for 2027. UBS predicts LI NING's earnings per share for 2026 to 2029 to be RMB 1.18, 1.37, 1.55, and 1.7 respectively.