Li Ning 2331

Li Ning 2331

Postby winston » Tue Jun 24, 2008 10:42 am

Not vested. From UOB-Kay-Hian

Li Ning – Gearing up beyond 2008

Li Ning, China’s largest domestic sportswear company, has recorded strong sales ytd, with preliminary orderbook for 1Q-3Q08 up over 50% yoy.

To offset the hike in product costs, the company has raised product prices for 3Q-4Q08 by 3-5%. Management expects a steady gross margin of 48% this year. Li Ning’s ability to pass on the cost increases to customers implies its strong brand equity.

In Jan-May 08, Li Ning recorded a samestore sales (SSS) growth of over 20%, accelerating from 16-17% in 2007. Ytd, the progress in store openings is in line with schedule, and the company maintains its target to add at least 867 stores this year, raising the total number to 6,100 at
end-08.

In particular, the company will open six flagship stores before Beijing Olympics begin in August. Each store will have 800-1,000sqm of sales floor area and investment of Rmb1.3m-1.5m.

Li Ning’s strong growth this year is partly due to the enthusiasm over sportswear triggered by the Beijing Olympics. However, we expect the robust growth of China’s sportswear market to sustain
beyond 2008 Beijing Olympics.

Euromonitor and ZOU Marketing forecast China’s sportswear market to grow at 20-30% CAGR for 2007-12. The main forces at work to propel the growth include burgeoning income growth, urbanisation and increasing flavor for sportswear among the youths.

Among domestic sportswear companies, Li Ning should be one of the few with sustainable development potential. In recent years, Li Ning has developed strong nich in mid-end markets in second- and third-tier cities. The critical mass enables Li Ning to upgrade its brand to higher-end
positioning. We anticipate Li Ning’s net profit to grow at 28% CAGR from FY07 to FY10.

Current valuation is attractive at 26x FY08 PE and 20.5x FY09 PE. Maintain BUY with target price of HK$29.00 based on DCF (WACC = 10%; terminal growth = 3%).
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Re: Li Ning

Postby kennynah » Tue Jun 24, 2008 10:49 am

w : is this company named after the chinese olympic champ and actor?
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Re: Li Ning

Postby winston » Tue Jun 24, 2008 10:57 am

kennynah wrote:w : is this company named after the chinese olympic champ and actor?


Yes, the gymnast expert. I guess when you are good in sports, you would also be a good businessman or whatever you want to be :)
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Re: Li Ning

Postby kennynah » Tue Jun 24, 2008 11:02 am

W : that maybe true, perhaps becos of their discipline and never-say-die attitude coupled with having actually earned successful international level trophies... self confidence is very high...and top class...

those play badminton here, lose and then whole life complaint referee kayu....this type, setup goreng pisang store, maybe even got chance to fail the business... :lol:

back to Li Ning...so, his store got standard? meaning his sports products, buy already boleh wear outside the house one or not and not be embarrassed by the style and design.... or do Li Ning shops sell wooden frame badminton rackets? :roll:
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Re: Li Ning

Postby winston » Tue Jun 24, 2008 11:06 am

Products are ok. Shops are ok too.

Played to Domestic market. Rising tide of Nationalism.

For Nike & Adidas, cheaper to buy good quality knock-offs.
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Re: Li Ning

Postby iam802 » Tue Jun 24, 2008 11:08 am

The foundations of discipline and focus are the characteristics of successful businessman.

Winston, is the company 'Li Ning' the leading brand in China, HK?

IIRC, Converse was acquired by Nike a couple of years back. Quite a fair number of acquisitions going on in the sport shoes industry.

Maybe, LiNing will acquired some major brands down the road or vice versa.
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Re: Li Ning

Postby kennynah » Tue Jun 24, 2008 11:12 am

Lotto was bought over by Nike too...in 4Q 2007...

This Li Ning, having been a world class sports man... maybe too proud to allow being taken over... but who knows...right? money spins the world... not sun/moon/earth gravity...
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Re: Li Ning 2331

Postby winston » Fri Aug 08, 2008 9:34 pm

Li Ning to light Olympic cauldron

Ex-gymnast and three-time gold medal winner Li Ning will light the Olympic cauldron, the official Xinhua News Agency said.

Li Ning, China's best-known gymnast of the 1980s, is also founder of sports clothes manufacturer Li Ning.

REUTERS
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Re: Li Ning 2331

Postby winston » Mon Aug 11, 2008 11:54 am

Not vested. And I'm not quite sure of the logic. Anyway, the market is always right :D :lol:

=========================

Li Ning jumps on chairman's Olympic ceremony role


China's largest domestic sportswear brand Li Ning (2331) rose more than 4 percent after its chairman lit the cauldron at the Olympic opening ceremony last week.

Analysts said the company was expected to benefit from the big marketing push provided by the globally telecast event.

The stock had rallied 3.7 percent on Friday amid talk that former Chinese gymnast Li Ning would play a key role at the Olympic opening ceremony.

REUTERS
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Re: Li Ning 2331

Postby winston » Thu Feb 19, 2009 2:37 pm

From BOCI:-

Tips top Sell as Li Ning (2331.HK) on view company facing "growth bottleneck." Target price HK$9.42
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