Li Ning Co Ltd

02331: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$27.00	Hmxpt	Znrkljc

Li Ning Earnings: Management Lowers 2024 Outlook Due to Macroeconomic Uncertainties

Ivan Su

Aug 16, 2024

Narrow-moat Li Ning’s first-half results mildly exceeded our expectations. However, due to deteriorating sales trends observed in the third quarter, management has prudently lowered its revenue guidance for 2024 by approximately 3%. In response to mounting near-term challenges, we cut our earnings estimate by an average of 19% from 2024-26. This has reduced our fair value estimate for Li Ning to HKD 31 from HKD 35. Despite these adjustments, we continue to view Li Ning shares as undervalued.

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