Li Ning Co Ltd
02331: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$65.00 | Mbqwdk | Bhqsjrnr |
Li Ning Earnings: Management Lowers 2024 Outlook Due to Macroeconomic Uncertainties
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.