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<Research>Nomura Cuts LI NING (02331.HK) TP to $30.4; Retail Sales Improving but SSS Growth Under Pressure
Recommend 13 Positive 24 Negative 10 |
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LI NING (02331.HK)'s 1Q retail performance was in line with expectations, but same-store sales (SSS) growth was disappointing, Nomura wrote in a report. Total retail sales of the Li Ning brand recorded a low-single-digit YoY increase, which was broadly in line with market expectations. SSS of the brand, on the other hand, logged a low single-digit YoY decline, showing some pressure. As for the retail and wholesale channels, SSS recorded YoY low-single-digit and mid-teens declines respectively, while the inventory-to-sales ratio reached four months, which was better than the same period last year. With LI NING's discount levels improved by single-digit ppts YoY in 1Q, the broker believed that the company's sales would gradually return to an uptrend in 2H24 on the back of a low base. LI NING is also expected to be on track to meet its full-year target of mid-single-digit YoY sales growth. Nomura lowered its target price for LI NING from $33.2 to $30.4 and gave it a Buy rating. AAStocks Financial News |
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