HK Stock Market Move | LI NING (02331) Opens Nearly 4% Higher; Company's RMB6 Billion Special Dividend Takes Effect, Continues to Advance Professional Sports and Brand Building

LI NING (02331) opened nearly 4% higher, up 3.94% as of press time at HK$15.3, with turnover of HK$40.4838 million. On the news front, CICC's latest research report noted that on November 5, LI NING announced that the board approved the declaration and payment of a special dividend of RMB2.32 per share (equivalent to HK$2.71 per share), corresponding to a total dividend payout of approximately RMB6 billion, with an ex-dividend date of November 18 and a payment date of December 1. The bank calculated that the special dividend corresponds to a dividend yield of approximately 18.4% based on the current share price. CICC believes that the company's regular dividend payout ratio is approximately 50%, and this special dividend represents incremental return, reflecting the company's capital allocation approach of distributing surplus cash to shareholders while safeguarding strategic investment and working capital needs. CICC continued that LI NING previously stated at its results conference that it has a clearer forecast of funding needs for brand resources and strategic layout over the next 12-24 months, and intends to strike a balance between long-term investment, financial prudence and shareholder returns. On the product side, the company continues to invest in sports technology, sports science research and iteration of core categories, while expanding into segmented markets such as outdoor, women's and children's apparel. On the channel side, Dragon stores and professional category stores have been launched successively, still requiring funding to support store openings, product allocation and initial operations, and CICC believes the sales contribution remains to be gradually released.