Morgan StanleyPublished a report saying,Li Ning(02331.HK) Earnings Improvement Driven by Sales Growth, Expected toNet ProfitThe rate can reach 18%. The company's single-brand strategy is a major factor in its strong operating leverage. Under the high sales base, it is believed that the earnings will still improve in 2022 to 2023, with a 30% growth, with an overweight rating and a target price increase from 71 yuan to 99 yuan.
The bank estimates that,Li NingRevenue and retail sales increased by 71% and 80% respectively in the first half of the year, and gross profit in the first half of the year is expected to increase by 3.2 percentage points to 52.7% due to reduced discounts and concessions to distributors.Morgan StanleyMeans that there are a number of factors that causeLi NingEarnings beat expectations, including strong demand, new company strategies, and a good track record of earnings since 2019.
(Article source: Golden Ten Data)