Morgan Stanley: LI NING (02331) signing with Steph Curry has strategic positive implications, maintains "neutral" rating.

Morgan Stanley released a research report stating that LI-NING (02331) has signed a long-term endorsement contract with Golden State Warriors star Stephen Curry and has established a partnership with Curry Brand, covering basketball, golf, and lifestyle products. The firm expects LI-NING's short-term stock performance to be driven by demand and pricing, maintaining a "hold" rating with a target price of HK$26. The firm believes that if LI-NING can achieve high single-digit revenue growth targets this year, signing Curry and Curry Brand will be seen as a clear strategic positive factor and could boost investor sentiment. The report mentions that Curry Brand plans to sign more athletes over time, and Morgan Stanley believes its operating model may be similar to LI-NING's "Way of Wade" series. LI-NING signed Dwyane Wade in 2012-2013, and after Wade retired from the NBA in 2019, LI-NING renewed a long-term contract in 2018. Since then, this series has been an important part of LI-NING's basketball business, accounting for approximately one-third of the sector's sales. The firm believes that the company may seek to utilize the Curry series to not only revive the basketball category but also enhance the LI-NING brand through cross-category expansion.