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2331: Potential Puma Bid Will Drive Future Upside Despite Slightly Higher Risk

Health Trends And E-Commerce Will Expand Premium Markets

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2331
AnalystHighTarget
Not Invested
Published 26 Jun 2025

Update shared on 12 Dec 2025

Fair value Decreased 0.32%
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AnalystHighTarget's Fair Value
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1Y
4.0%
7D
4.7%

Analysts have trimmed their price target for Li Ning slightly to reflect a modest adjustment in fair value and discount rate assumptions, even as they factor in marginally stronger long term revenue growth and stable profit margins.

What's in the News

  • Li Ning has been identified among potential bidders that are exploring an early-stage review of acquiring German sportswear brand Puma, alongside ANTA Sports and ASICS. (Bloomberg/Reuters)
  • The company has stated it has not engaged in any substantive negotiations or evaluations regarding a Puma transaction and emphasized its continued focus on developing the Li Ning brand. (Reuters)
  • Puma’s largest shareholder Artemis is reviewing strategic options for its 29% stake, which could influence any potential bid in which Li Ning might later participate. (Reuters)

Valuation Changes

  • Fair Value: Trimmed slightly from HK$33.58 to HK$33.47, reflecting a minor downward adjustment in intrinsic value estimates.
  • Discount Rate: Raised modestly from 8.74% to about 8.98%, signaling a slightly higher required return applied to future cash flows.
  • Revenue Growth: Increased slightly from about 9.07% to about 9.45%, indicating a marginally more optimistic long term top line outlook.
  • Net Profit Margin: Edged up from about 10.32% to about 10.33%, implying essentially stable profitability assumptions.
  • Future P/E: Lowered slightly from 26.08x to about 25.68x, suggesting a marginally less demanding valuation multiple on projected earnings.

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Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.