Daiwa raised Li Ning's target price to HKD 20 and upgraded the rating to Hold.

Jin10 reported on August 25 that Daiwa published a research report indicating that Li Ning (02331.HK) had a net profit margin slightly better than the bank’s expectations for the first half of the year, and the bank’s concerns about the management’s downward guidance did not materialize. The bank also observed stable early signs in Li Ning’s core brand; however, since the sustainability of the group’s return to profitability remains uncertain, the bank only upgraded Li Ning’s rating from underperform to hold, raising the target price from HKD 14 to HKD 20, and increasing the earnings per share estimates for 2025 to 2027 by 10% to 13%. The bank stated that Li Ning still reaffirms its guidance for a high single-digit percentage net profit margin for the full year. However, due to the slowdown in retail momentum in July and August, coupled with the persistently weak macro environment, the company’s management remains cautious about the second half of the year.