Market Cap
HK$226.6b
Last Updated
2021/07/22 15:48 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: 2331 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: 2331's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-3.4%
2331
-2.6%
HK Luxury
-1.2%
HK Market
1 Year Return
258.4%
2331
121.4%
HK Luxury
14.4%
HK Market
Return vs Industry: 2331 exceeded the Hong Kong Luxury industry which returned 119% over the past year.
Return vs Market: 2331 exceeded the Hong Kong Market which returned 10% over the past year.
Shareholder returns
| 2331 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -2.6% | -1.2% |
| 30 Day | 10.3% | -3.4% | -4.3% |
| 90 Day | 44.2% | 17.0% | -6.4% |
| 1 Year | 259.6%258.4% | 124.4%121.4% | 18.5%14.4% |
| 3 Year | 921.7%904.4% | 113.3%97.7% | 10.0%-2.2% |
| 5 Year | 2,145.8%2,107.7% | 234.6%182.5% | 45.8%20.0% |
Long-Term 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
2 weeks ago | Simply Wall St
Trade Alert: The Independent Non Executive Director Of Li Ning Company Limited (HKG:2331), Chung Bun Chan, Has Sold Some Shares Recently1 month ago | Simply Wall St
Is Li Ning Company Limited's (HKG:2331) Latest Stock Performance A Reflection Of Its Financial Health?1 month ago | Simply Wall St
Under The Bonnet, Li Ning's (HKG:2331) Returns Look ImpressiveValuation
Is Li Ning undervalued compared to its fair value and its price relative to the market?
109.86x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2331 (HK$91.4) is trading above our estimate of fair value (HK$62.8)
Significantly Below Fair Value: 2331 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2331 is poor value based on its PE Ratio (109.9x) compared to the Hong Kong Luxury industry average (12.1x).
PE vs Market: 2331 is poor value based on its PE Ratio (109.9x) compared to the Hong Kong market (10.8x).
Price to Earnings Growth Ratio
PEG Ratio: 2331 is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: 2331 is overvalued based on its PB Ratio (21.7x) compared to the HK Luxury industry average (0.8x).
Future Growth
How is Li Ning forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
27.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2331's forecast earnings growth (27.5% per year) is above the savings rate (1.5%).
Earnings vs Market: 2331's earnings (27.5% per year) are forecast to grow faster than the Hong Kong market (18.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2331's revenue (18.1% per year) is forecast to grow faster than the Hong Kong market (12.7% per year).
High Growth Revenue: 2331's revenue (18.1% 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 (29.7%)
Past Performance
How has Li Ning performed over the past 5 years?
47.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2331 has high quality earnings.
Growing Profit Margin: 2331's current net profit margins (11.7%) are higher than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: 2331 has become profitable over the past 5 years, growing earnings by 47.1% per year.
Accelerating Growth: 2331's earnings growth over the past year (13.3%) is below its 5-year average (47.1% per year).
Earnings vs Industry: 2331 earnings growth over the past year (13.3%) exceeded the Luxury industry -23.9%.
Return on Equity
High ROE: 2331's Return on Equity (19.5%) is considered low.
Financial Health
How is Li Ning's financial position?
Financial Position Analysis
Short Term Liabilities: 2331's short term assets (CN¥9.8B) exceed its short term liabilities (CN¥5.0B).
Long Term Liabilities: 2331's short term assets (CN¥9.8B) exceed its long term liabilities (CN¥889.4M).
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 37.5%.
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
Dividend
What is Li Ning current dividend yield, its reliability and sustainability?
0.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2331's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.01%).
High Dividend: 2331's dividend (0.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).
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?
3.1yrs
Average management tenure
CEO
Ning Li (58 yo)
1.83yrs
Tenure
CN¥49,625,000
Compensation
Mr. Ning Li serves as Joint Chief Executive Officer of Li Ning Company Limited since September 02, 2019. Mr. Li serves as Chairman of the Board at Trinity Acquisition Corp. He is the Founder of Li Ning Com...
CEO Compensation Analysis
Compensation vs Market: Ning's total compensation ($USD7.67M) is above average for companies of similar size in the Hong Kong market ($USD1.04M).
Compensation vs Earnings: Ning's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: 2331's management team is considered experienced (3.1 years average tenure).
Board Members
Experienced Board: 2331's board of directors are seasoned and experienced ( 17.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 2331 insiders have only sold shares 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: 1990
- Industry: Apparel, Accessories and Luxury Goods
- Sector: Consumer Durables
- Market Cap: HK$226.650b
- Shares outstanding: 2.48b
- 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
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 | 2021/07/22 15:48 |
| End of Day Share Price | 2021/07/22 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.