Golden Financial News | Guosen International released the operational situation of li ning (02331) in Q3 2024, with a decrease in overall retail turnover on all platforms compared to the same period last year, with a significant decrease in offline turnover compared to high unit numbers, and a moderate increase in online turnover compared to medium unit numbers.
The bank pointed out that in terms of channel inventory turnover, in Q3 24, the company's offline channel inventory turnover is around 5, slightly higher year-on-year but still within a controllable range, with new products accounting for approximately 80% in the past 6 months, and the inventory age structure remaining good. In terms of discounts, the company's offline channel has seen a deep decrease in low unit discounting, while the e-commerce channel has seen an improvement in low unit retail discounts. It is expected that in Q4, discounts will be under pressure due to traditional e-commerce shopping festivals, but discounts for the whole year are expected to improve year-on-year.
The bank stated that the company's revenue in Q3 was slightly affected by weak consumption, but revenue during the National Day has already started to improve. The company has also maintained its previous expectations. As inventory levels return to a healthy state, the bank believes that the company's growth will return to a stable level. Taking everything into consideration, the bank predicts EPS for 2024/2025/2026 to be 1.17/1.29/1.43 yuan, giving a 18 times PE for 2024, a target price of 22.8 Hong Kong dollars, and maintaining a 'buy' rating.
