Market Cap
HK$59.1b
Last Updated
2019/10/14 12:31 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.
Snowflake
Fundamentals
Flawless balance sheet with high growth potential.
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
Market Performance
7 Day Return
10.0%
2331
3.1%
HK Luxury
2.2%
HK Market
1 Year Return
285.2%
2331
21.8%
HK Luxury
-1.3%
HK Market
Return vs Industry: 2331 exceeded the Hong Kong Luxury industry which returned 21.8% over the past year.
Return vs Market: 2331 exceeded the Hong Kong Market which returned -1.3% over the past year.
Share holder returns
| 2331 | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.0% | 3.1% | 2.2% |
| 30 Day | 15.7% | 1.1% | -2.9% |
| 90 Day | 30.7% | 6.6% | -5.8% |
| 1 Year | 287.9%285.2% | 26.1%21.8% | 2.3%-1.3% |
| 3 Year | 387.5%384.1% | 44.7%27.4% | 15.6%3.9% |
| 5 Year | 550.8%546.3% | 41.9%14.3% | 20.1%0.06% |
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
5 days ago | Simply Wall St
Are Insiders Selling Li Ning Company Limited (HKG:2331) Stock?2 weeks ago | Simply Wall St
Do Directors Own Li Ning Company Limited (HKG:2331) Shares?4 weeks ago | Simply Wall St
The Li Ning (HKG:2331) Share Price Has Soared 403%, Delighting Many ShareholdersValuation
Is Li Ning undervalued based on future cash flows and its price relative to the stock market?
45.39x
Price to Earnings (PE) ratio
Intrinsic Value Based on Future Cash Flows
Undervalued: 2331 (HK$25.85) is trading above our estimate of fair value (HK$22.47)
Significantly Undervalued: 2331 is trading above our estimate of fair value.
Price Based on Earnings
PE vs Industry: 2331 is poor value based on its PE Ratio (45.4x) compared to the Luxury industry average (9.5x).
PE vs Market: 2331 is poor value based on its PE Ratio (45.4x) compared to the Hong Kong market (10.3x).
Price Based on Expected Growth
Low PEG Ratio: 2331 is poor value based on its PEG Ratio (2.3x)
Price Based on Value of Assets
PB vs Industry: 2331 is overvalued based on its PB Ratio (8.3x) compared to the HK Luxury industry average (0.9x).
Next Steps
Future Growth
How is Li Ning expected to perform in the next 1 to 3 years based on estimates from 24 analysts?
20.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
Earnings vs Savings Rate: 2331's forecast earnings growth (20% per year) is above the savings rate (2%).
Earnings vs Market: 2331's earnings (20% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2331's revenue (15.3% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).
High Growth Revenue: 2331's revenue (15.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Estimates
Future Return on Equity
High Future ROE: 2331's Return on Equity is forecast to be high in 3 years time (25.9%)
Next Steps
Past Performance
How has Li Ning performed over the past 5 years?
72.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 2331 has become profitable over the past 5 years, growing earnings by 72% per year.
Accelerating Growth: 2331's earnings growth over the past year (108.8%) exceeds its 5-year average (72% per year).
Earnings vs Industry: 2331 earnings growth over the past year (108.8%) exceeded the Luxury industry -4.9%.
Return on Equity
High ROE: 2331's Return on Equity (19.2%) is considered low.
Return on Assets
ROA vs Industry: 2331 has a higher Return on Assets than the Luxury industry average last year.
Return on Capital Employed
ROCE Improving: 2331 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Li Ning's financial position?
Financial Position Analysis
Short Term Liabilities: 2331's short term assets (CN¥7.4B) exceeds its short term liabilities (CN¥3.8B)
Long Term Liabilities: 2331's short term assets (7.4B) exceeds its long term liabilities (593.1M)
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 48.9%.
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?
1.07%
Expected Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Dividend Yield and Payments Analysis
Notable Dividend: 2331's dividend (0.38%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 2331's dividend (0.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).
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 .
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
What is the CEO of Li Ning's salary, the management and board of directors tenure and is there insider trading?
3.3yrs
Average management tenure
CEO
Li Ning (56yo)
0.08yrs
Tenure
CN¥24,238,000
Compensation
Mr. Li Ning 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: Li has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.
Compensation vs Earnings: Li's compensation has increased by more than 20% in the past year.
Management Age and Tenure
3.3yrs
Average Tenure
52yo
Average Age
Experienced Management: 2331's management team is considered experienced (3.3 years average tenure).
Board Age and Tenure
11.3yrs
Average Tenure
61yo
Average Age
Experienced Board: 2331's board of directors are seasoned and experienced ( 11.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 4,115,000 |
| Max Price | CN¥21.94 |
| Entity | Company |
| Shares | 2,179,308 |
| Max Price | CN¥23.07 |
| Entity | Company |
| Shares | 13,501,747 |
| Max Price | CN¥12.93 |
| Entity | Company |
| Shares | 8,667,500 |
| Max Price | CN¥13.00 |
| Entity | Company |
| Shares | 73,802,719 |
| Max Price | CN¥12.79 |
| Entity | Company |
| Shares | 19,384,000 |
| Max Price | CN¥12.93 |
| Entity | Company |
| Shares | 8,029,719 |
| Max Price | CN¥13.40 |
| Entity | Company |
| Shares | 4,657,000 |
| Max Price | CN¥13.97 |
| Entity | Company |
| Shares | 1,423,500 |
| Max Price | CN¥14.07 |
| Entity | Company |
| Shares | 2,470,000 |
| Max Price | CN¥12.71 |
| Entity | Company |
| Shares | 10,253,500 |
| Max Price | CN¥12.05 |
| Entity | Company |
| Shares | 793,500 |
| Max Price | CN¥12.18 |
| Entity | Company |
| Shares | 47,677,918 |
| Max Price | CN¥11.72 |
| Entity | Company |
| Shares | 148,000,000 |
| Max Price | CN¥11.72 |
| Entity | Company |
| Shares | 5,167,500 |
| Max Price | CN¥11.78 |
| Entity | Company |
| Shares | 304,000 |
| Max Price | CN¥11.69 |
| Entity | Company |
| Shares | 915,000 |
| Max Price | CN¥10.14 |
| Entity | Company |
| Shares | 2,709,500 |
| Max Price | CN¥9.89 |
| Entity | Company |
| Shares | 1,933,500 |
| Max Price | CN¥8.95 |
| Entity | Company |
| Shares | 4,633,500 |
| Max Price | CN¥8.66 |
| Entity | Individual |
| Role | Co-Chief Executive Officer Founder |
| Shares | 2,561,120 |
| Max Price | CN¥8.71 |
| Entity | Company |
| Shares | 1,704,000 |
| Max Price | CN¥8.15 |
| Entity | Company |
| Shares | 2,461,500 |
| Max Price | CN¥7.04 |
Ownership Breakdown
Management Team
Li Ning (56yo)
Founder
- Tenure: 0.08yrs
- Compensation: CN¥24.24m
Kar Tai
Company Secretary
- Tenure: 6.4yrs
Terence Tsang (57yo)
Chief Financial Officer
- Tenure: 6.5yrs
Qilin Li (32yo)
Executive Director
- Tenure: 1.8yrs
- Compensation: CN¥2.23m
Takeshi Kosaka (48yo)
Joint CEO & Executive Director
- Tenure: 0.08yrs
Board Members
Louis Koo (63yo)
Independent Non-Executive Director
- Tenure: 15.3yrs
- Compensation: CN¥270.00k
Ya Wang (63yo)
Independent Non Executive Director
- Tenure: 15.3yrs
- Compensation: CN¥270.00k
Li Ning (56yo)
Founder
- Tenure: 0.08yrs
- Compensation: CN¥24.24m
Bunny Chan (61yo)
Independent Non Executive Director
- Tenure: 15.3yrs
- Compensation: CN¥250.00k
Samuel Su (66yo)
Independent Non-Executive Director
- Tenure: 7.3yrs
- Compensation: CN¥270.00k
Qilin Li (32yo)
Executive Director
- Tenure: 1.8yrs
- Compensation: CN¥2.23m
Takeshi Kosaka (48yo)
Joint CEO & Executive Director
- Tenure: 0.08yrs
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$59.077b
- Shares outstanding: 2.31b
- 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 |
| 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 go ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/14 12:31 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.