Li Ning Company Limited

SHSC:2331 Stock Report

Market Cap: HK$40.2b

Li Ning Valuation

Is 2331 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2331 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2331 (HK$15.6) is trading below our estimate of fair value (HK$29.01)

Significantly Below Fair Value: 2331 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2331?

Key metric: As 2331 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2331. This is calculated by dividing 2331's market cap by their current earnings.
What is 2331's PE Ratio?
PE Ratio12.4x
EarningsCN¥3.02b
Market CapCN¥37.41b

Price to Earnings Ratio vs Peers

How does 2331's PE Ratio compare to its peers?

The above table shows the PE ratio for 2331 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
3998 Bosideng International Holdings
14x12.6%HK$46.4b
6181 Laopu Gold
37.8x34.2%HK$32.8b
1910 Samsonite International
9.3x3.8%HK$28.8b
2313 Shenzhou International Group Holdings
15.3x12.8%HK$88.1b
2331 Li Ning
12.4x9.9%HK$40.2b

Price-To-Earnings vs Peers: 2331 is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (17.6x).


Price to Earnings Ratio vs Industry

How does 2331's PE Ratio compare vs other companies in the HK Luxury Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
8211 Zhejiang Yongan Rongtong Holdings
1xn/aUS$5.47m
No more companies available in this PE range
2331 12.4xIndustry Avg. 9.1xNo. of Companies15PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2331 is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the Hong Kong Luxury industry average (9.1x).


Price to Earnings Ratio vs Fair Ratio

What is 2331's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2331 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio10.4x

Price-To-Earnings vs Fair Ratio: 2331 is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2331 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$15.60
HK$20.24
+29.7%
33.8%HK$49.24HK$13.14n/a32
Nov ’25HK$15.90
HK$20.57
+29.4%
33.8%HK$50.08HK$13.37n/a32
Oct ’25HK$19.70
HK$20.83
+5.7%
37.4%HK$50.90HK$12.07n/a32
Sep ’25HK$14.66
HK$20.86
+42.3%
36.1%HK$50.15HK$11.90n/a32
Aug ’25HK$13.94
HK$24.96
+79.1%
28.4%HK$51.87HK$13.82n/a32
Jul ’25HK$16.90
HK$26.43
+56.4%
26.2%HK$51.78HK$13.94n/a32
Jun ’25HK$20.35
HK$26.49
+30.2%
26.2%HK$51.92HK$13.98n/a32
May ’25HK$20.85
HK$26.45
+26.9%
26.1%HK$51.94HK$13.98n/a33
Apr ’25HK$20.80
HK$27.05
+30.0%
24.0%HK$51.86HK$13.97n/a34
Mar ’25HK$20.05
HK$28.98
+44.5%
41.8%HK$69.18HK$13.91n/a32
Feb ’25HK$17.62
HK$31.50
+78.8%
44.6%HK$69.38HK$13.95n/a32
Jan ’25HK$20.90
HK$39.36
+88.3%
29.5%HK$70.17HK$19.07n/a32
Dec ’24HK$21.75
HK$41.13
+89.1%
24.4%HK$69.34HK$25.95n/a32
Nov ’24HK$25.05
HK$41.86
+67.1%
24.3%HK$68.00HK$25.45HK$15.9032
Oct ’24HK$32.95
HK$59.01
+79.1%
16.0%HK$89.62HK$41.05HK$19.7031
Sep ’24HK$37.05
HK$59.22
+59.8%
15.8%HK$89.66HK$41.07HK$14.6631
Aug ’24HK$45.30
HK$69.11
+52.6%
15.8%HK$93.27HK$41.89HK$13.9432
Jul ’24HK$42.15
HK$71.57
+69.8%
12.8%HK$89.13HK$41.70HK$16.9032
Jun ’24HK$41.65
HK$73.89
+77.4%
11.6%HK$90.98HK$42.57HK$20.3532
May ’24HK$55.85
HK$76.09
+36.2%
11.6%HK$93.66HK$43.82HK$20.8532
Apr ’24HK$61.90
HK$77.18
+24.7%
11.6%HK$94.04HK$44.00HK$20.8031
Mar ’24HK$71.25
HK$84.49
+18.6%
13.2%HK$117.31HK$43.79HK$20.0529
Feb ’24HK$77.60
HK$86.23
+11.1%
13.5%HK$120.75HK$45.07HK$17.6230
Jan ’24HK$67.75
HK$79.95
+18.0%
14.7%HK$115.96HK$45.53HK$20.9030
Dec ’23HK$61.60
HK$80.48
+30.6%
15.7%HK$114.39HK$44.91HK$21.7531
Nov ’23HK$44.45
HK$78.95
+77.6%
16.0%HK$112.07HK$44.00HK$25.0532

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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