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2331

Li Ning SZSC:2331 Stock Report

Last Price

HK$70.60

Market Cap

HK$184.5b

7D

9.4%

1Y

-25.5%

Updated

30 Jun, 2022

Data

Company Financials +
2331 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance5/6
Financial Health6/6
Dividends0/6

2331 Stock Overview

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.

Li Ning Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Li Ning
Historical stock prices
Current Share PriceHK$70.60
52 Week HighHK$108.20
52 Week LowHK$48.60
Beta0.74
1 Month Change15.36%
3 Month Change5.85%
1 Year Change-25.53%
3 Year Change283.28%
5 Year Change1,076.67%
Change since IPO1,195.41%

Recent News & Updates

Shareholder Returns

2331HK LuxuryHK Market
7D9.4%9.6%1.1%
1Y-25.5%-35.6%-20.9%

Return vs Industry: 2331 exceeded the Hong Kong Luxury industry which returned -36.5% over the past year.

Return vs Market: 2331 underperformed the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 2331's price volatile compared to industry and market?
2331 volatility
2331 Average Weekly Movement9.1%
Luxury Industry Average Movement6.6%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 2331 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 2331's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19904,019Ning Lihttps://www.lining.com

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.

Li Ning Fundamentals Summary

How do Li Ning's earnings and revenue compare to its market cap?
2331 fundamental statistics
Market CapCN¥157.57b
Earnings (TTM)CN¥4.01b
Revenue (TTM)CN¥22.57b

39.3x

P/E Ratio

7.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2331 income statement (TTM)
RevenueCN¥22.57b
Cost of RevenueCN¥10.60b
Gross ProfitCN¥11.97b
Other ExpensesCN¥7.96b
EarningsCN¥4.01b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.53
Gross Margin53.03%
Net Profit Margin17.77%
Debt/Equity Ratio0%

How did 2331 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

29%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

2331 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.3x
Enterprise Value/EBITDA25.2x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

2331 PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average33.1x
2020 ANTA Sports Products
28.9x14.9%HK$261.6b
2313 Shenzhou International Group Holdings
36.2x26.0%HK$142.9b
1913 Prada
46.5x24.7%HK$112.5b
3998 Bosideng International Holdings
21.8x17.2%HK$52.6b
2331 Li Ning
39.3x20.2%HK$184.5b

Price-To-Earnings vs Peers: 2331 is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the peer average (33.1x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: 2331 is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the Hong Kong Luxury industry average (8.4x)


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 Ratio39.3x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: 2331 is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


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$70.6) is trading below our estimate of fair value (HK$104.89)

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


Price to Earnings Growth Ratio

PEG Ratio: 2331 is poor value based on its PEG Ratio (1.9x)


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Future Growth

How is Li Ning forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2331's forecast earnings growth (20.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 2331's earnings (20.2% per year) are forecast to grow faster than the Hong Kong market (17.1% per year).

High Growth Earnings: 2331's 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 (10.2% 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 (22.9%)


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Past Performance

How has Li Ning performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


46.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2331 has high quality earnings.

Growing Profit Margin: 2331's current net profit margins (17.8%) are higher than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: 2331's earnings have grown significantly by 46% per year over the past 5 years.

Accelerating Growth: 2331's earnings growth over the past year (136.1%) exceeds its 5-year average (46% per year).

Earnings vs Industry: 2331 earnings growth over the past year (136.1%) exceeded the Luxury industry 43%.


Return on Equity

High ROE: 2331's Return on Equity (19%) is considered low.


Discover strong past performing companies

Financial Health

How is Li Ning's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2331's short term assets (CN¥18.7B) exceed its short term liabilities (CN¥7.7B).

Long Term Liabilities: 2331's short term assets (CN¥18.7B) exceed its long term liabilities (CN¥1.5B).


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 19%.

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


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Dividend

What is Li Ning current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.76%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2331's dividend (0.76%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 2331's dividend (0.76%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.74%).


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.


Earnings Payout to Shareholders

Earnings Coverage: 2331 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: 2331 is not paying a notable dividend for the Hong Kong market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Ning Li (58 yo)

2.75yrs

Tenure

CN¥65,891,000

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 ($USD9.83M) is above average for companies of similar size in the Hong Kong market ($USD1.03M).

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 (4 years average tenure).


Board Members

Experienced Board: 2331's board of directors are seasoned and experienced ( 18 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 been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Li Ning Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Li Ning Company Limited
  • Ticker: 2331
  • Exchange: SZSC
  • Founded: 1990
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Implied Market Cap: HK$184.514b
  • Shares outstanding: 2.61b
  • Website: https://www.lining.com

Number of Employees


Location

  • Li Ning Company Limited
  • Beijing Eco-Techl Development Area
  • No. 8 Xing Guang 5th Street
  • Beijing
  • 101111
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/29 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.