M Stanley's research report indicates that LI NING's business quality is improving, and its brand and product competitiveness are underestimated by the market. The broker anticipates a 7% CAGR in sales and adjusted net profit from 2026 to 2028, despite macro uncertainties leading to a conservative 6% sales growth estimate for 2026. The report highlights significant improvements in LI NING's product mix, with narrowing declines in basketball sales and strong growth in badminton and new product lines. Consequently, revenue forecasts for 2026 and 2027 have been raised, leading to an increase in the net profit forecast for 2026. The rating is maintained at Overweight with a target price of HKD26.
