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<Research>BOCI Cuts LI NING (02331.HK) TP to $15.3 w/ Sector Top Pick ANTA SPORTS (02020.HK)
Recommend 6 Positive 10 Negative 9 |
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Although most Chinese sportswear companies have announced rather positive 4Q24 operating data, competition in the market may intensify this year as industry reforms continue and major brands are vying for market share, according to BOCI's research report. The move by LI NING (02331.HK) to regain the official sportswear rights of the Chinese Olympic Committee (COC), which ends the multi-year partnership between ANTA SPORTS (02020.HK) and the COC, will change the landscape of the industry. BOCI forecasted ANTA SPORTS and other brands to take more steps to stabilize their long-term growth trajectory, including finding new brand ambassadors, new sponsorships and tapping into new markets. Based on 4Q24 performance, BOCI still listed ANTA SPORTS as its top pick for the sportswear sector, followed by XTEP INT'L (01368.HK), LI NING and TOPSPORTS (06110.HK). Of which, the broker kept rating at Hold on LI NING, and lowered its 2025/ 2026 EPS forecasts by 6%/ 4%, reflecting the additional promotional costs that may come with regaining the sponsorship with the COC. The broker also cut its target price for LI NING to $15.3. AAStocks Financial News |
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