Goldman Sachs: LI NING (02331) first quarter sales reflect improved fundamentals and maintain a positive outlook.

Goldman Sachs released a research report stating that LI NING's adult series retail sales in the first quarter increased on a unit basis year-on-year, and if including the children's clothing business with a year-on-year growth of over 20%, total retail sales increased significantly on a unit basis year-on-year. The bank believes that if consumer trends remain stable, the base effect in the second half of the year will be more favorable; Maintain a "buy" rating on LI NING with a target price of 26.7 Hong Kong dollars. The company believes that the first quarter operating performance is in line with internal expectations and reiterates the guidance of high single-digit sales growth for the full year and a net profit margin of high single digits; at the same time, it will continue to monitor the terminal market trends for the remaining year. The bank reiterated its positive view on the improvement of LI NING's brand fundamentals, believing that the first quarter performance demonstrated more evidence, including the growth of the Honor series sales on a unit basis. At the same time, first-quarter sales also met management's guidance of high single-digit growth for the full year.