Morgan Stanley: Raised Li Ning's target price to HK $99, rating overweight

金十数据2021-06-28

  Morgan StanleyPublished a report stating,Li Ning(02331. HK) Sales growth drives profit improvement, and it is expected that itsNet profitThe rate can reach 18%. The company's single-brand strategy is the main factor of its strong operating leverage. Under the high sales base, it is believed that profits will still improve from 2022 to 2023, recording a 30% growth. It has an overweight rating and the target price has been raised from 71 yuan to 99 Hong Kong dollars.

The bank estimates that,Li NingRevenue and retail sales increased by 71% and 80% respectively in the first half, and gross profit in the first half is expected to increase by 3.2 percentage points to 52.7% due to lower discounts and incentives to distributors.Morgan StanleyIt means that there are a number of factors that causeLi NingEarnings performance beat expectations, including strong demand, new corporate strategies, and good earnings track record since 2019.

(Source of article: Golden Ten Data)

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