Market Cap
HK$50.6b
Last Updated
2020/04/04 12:41 UTC
Data Sources
Company Financials +
Executive Summary
Li Ning Company Limited engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with flawless balance sheet.
Similar Companies
Share Price & News
How has Li Ning's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2331's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-9.3%
2331
-6.4%
HK Luxury
0.2%
HK Market
1 Year Return
61.4%
2331
-25.1%
HK Luxury
-22.0%
HK Market
Return vs Industry: 2331 exceeded the Hong Kong Luxury industry which returned -23.6% over the past year.
Return vs Market: 2331 exceeded the Hong Kong Market which returned -21.6% over the past year.
Shareholder returns
| 2331 | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.3% | -6.4% | 0.2% |
| 30 Day | -9.8% | -19.3% | -10.8% |
| 90 Day | -12.2% | -28.4% | -16.5% |
| 1 Year | 62.6%61.4% | -23.0%-25.1% | -19.1%-22.0% |
| 3 Year | 345.2%342.1% | 4.5%-7.7% | -3.7%-13.4% |
| 5 Year | 338.6%335.5% | 2.0%-14.1% | -15.2%-28.8% |
Price Volatility Vs. Market
How volatile is Li Ning's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Don't Sell Li Ning Company Limited (HKG:2331) Before You Read This2 weeks ago | Simply Wall St
Why Li Ning Company Limited’s (HKG:2331) Return On Capital Employed Is Impressive4 weeks ago | Simply Wall St
Did The Underlying Business Drive Li Ning's (HKG:2331) Lovely 572% Share Price Gain?Valuation
Is Li Ning undervalued compared to its fair value and its price relative to the market?
27.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2331 (HK$20.6) is trading below our estimate of fair value (HK$28.27)
Significantly Below Fair Value: 2331 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2331 is poor value based on its PE Ratio (30.4x) compared to the Luxury industry average (7.4x).
PE vs Market: 2331 is poor value based on its PE Ratio (30.4x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: 2331 is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: 2331 is overvalued based on its PB Ratio (6.4x) compared to the HK Luxury industry average (0.7x).
Next Steps
Future Growth
How is Li Ning forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
20.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2331's forecast earnings growth (20.7% per year) is above the savings rate (1.6%).
Earnings vs Market: 2331's earnings (20.7% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2331's revenue (15.1% per year) is forecast to grow faster than the Hong Kong market (10% per year).
High Growth Revenue: 2331's revenue (15.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2331's Return on Equity is forecast to be high in 3 years time (23.5%)
Next Steps
Past Performance
How has Li Ning performed over the past 5 years?
66.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2331 has high quality earnings.
Growing Profit Margin: 2331's current net profit margins (10.8%) are higher than last year (6.8%).
Past Earnings Growth Analysis
Earnings Trend: 2331 has become profitable over the past 5 years, growing earnings by 66.2% per year.
Accelerating Growth: 2331's earnings growth over the past year (109.6%) exceeds its 5-year average (66.2% per year).
Earnings vs Industry: 2331 earnings growth over the past year (109.6%) exceeded the Luxury industry -2.8%.
Return on Equity
High ROE: 2331's Return on Equity (21%) is considered high.
Next Steps
Financial Health
How is Li Ning's financial position?
Financial Position Analysis
Short Term Liabilities: 2331's short term assets (CN¥8.5B) exceed its short term liabilities (CN¥4.7B).
Long Term Liabilities: 2331's short term assets (CN¥8.5B) exceed its long term liabilities (CN¥706.7M).
Debt to Equity History and Analysis
Debt Level: 2331 is debt free.
Reducing Debt: 2331 has no debt compared to 5 years ago when its debt to equity ratio was 76.6%.
Debt Coverage: 2331 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 2331 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 2331 has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 2331's debt is covered by short term assets.
Next Steps
Dividend
What is Li Ning's current dividend yield, its reliability and sustainability?
0.82%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 2331's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.57%).
High Dividend: 2331's dividend (0.82%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).
Stability and Growth of Payments
Stable Dividend: 2331 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.
Growing Dividend: 2331 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 2331 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2331's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Ning Li (56yo)
0.58
Tenure
CN¥24,238,000
Compensation
Mr. Ning Li serves as joint Chief Executive Officer of Li Ning Company Limited from September 2, 2019. He is the Founder of Li Ning Company Limited and serves as its Executive Chairman and Head of Business ...
CEO Compensation Analysis
Compensation vs Market: Ning's total compensation ($USD3.42M) is above average for companies of similar size in the Hong Kong market ($USD670.77K).
Compensation vs Earnings: Ning's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 0.58yr | CN¥24.24m | 0.45% CN¥229.7m | |
| Executive Director | 2.33yrs | CN¥2.23m | 0.0088% CN¥4.4m | |
| Joint CEO & Executive Director | 0.58yr | no data | no data | |
| Chief Financial Officer | 7yrs | no data | no data | |
| Company Secretary | 6.92yrs | no data | no data |
3.8yrs
Average Tenure
52yo
Average Age
Experienced Management: 2331's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 0.58yr | CN¥24.24m | 0.45% CN¥229.7m | |
| Executive Director | 2.33yrs | CN¥2.23m | 0.0088% CN¥4.4m | |
| Joint CEO & Executive Director | 0.58yr | no data | no data | |
| Independent Non-Executive Director | 15.83yrs | CN¥270.00k | no data | |
| Independent Non Executive Director | 15.83yrs | CN¥270.00k | 0.020% CN¥10.1m | |
| Independent Non Executive Director | 15.83yrs | CN¥250.00k | 0.017% CN¥8.5m | |
| Independent Non-Executive Director | 7.75yrs | CN¥270.00k | no data |
11.8yrs
Average Tenure
61yo
Average Age
Experienced Board: 2331's board of directors are seasoned and experienced ( 11.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Li Ning Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Li Ning Company Limited
- Ticker: 2331
- Exchange: SEHK
- Founded: 2004
- Industry: Apparel, Accessories and Luxury Goods
- Sector: Consumer Durables
- Market Cap: HK$50.580b
- Shares outstanding: 2.46b
- Website: https://www.lining.com
Number of Employees
Location
- Li Ning Company Limited
- Opto-Mechatronics Industrial Park
- No. 8 Xing Guang 5th Street
- Beijing
- 101111
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LNLB | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2004 |
| 2331 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| LNNG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2004 |
| 2331 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| 2331 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| 2331 N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jun 2004 |
| LNNG.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2008 |
Biography
Li Ning Company Limited engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People’s Republic of China. The company offers sporting goods, including footwear, apparel, equipment, and accessories for professional and leisure purposes primarily under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton under the Kason brand name. As of December 31, 2018, the company operated 7,137 conventional stores, flagship stores, China LI-NING stores, factory outlets, and discount stores under the LI-NING brand. Li Ning Company Limited was incorporated in 2004 and is headquartered in Beijing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 12:41 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.