Citi Research raised its target price for Li Ning (02331) to HK$47.95 from HK$32.53 and maintained its "buy" rating.
The research house said Li Ning's total retail sales grew by mid-single-digit in 3Q, outperforming that of Anta brand. Per management, its monthly retail sales improved sequentially each month of 3Q. Its retail discount (based on tag prices) rose by high-single-digit in 3Q, in line with 2Q.
However, if stripping out the impact of its high-single-digit rise of tag prices in 2020, underlying retail discount was largely flat in 3Q, better than Anta's low-single-digit rise (for both Anta & Fila).
Citi also noted that Li Ning's sell-out rate for 3-month products was flat and that for
6-month products was down by merely 2ppts in 3Q, reflecting consumers'acceptance of its new products (which carry hiked tag prices).
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
