Bank of America Securities released a research report stating that Li Ning's (02331) 2025 results exceeded expectations. Management has provided guidance for 2026, forecasting both revenue growth and net profit margin to reach high-single-digit percentages, which also surpassed expectations.

The firm has upgraded its rating on Li Ning from "Neutral" to "Buy" and raised the target price from HK$20.2 to HK$25.

The report indicates that Li Ning's growth is re-accelerating, with its running shoe business showing steady growth, the basketball segment stabilizing, and the casualwear business picking up pace again. Contributions from the badminton and outdoor segments are also increasing. While discounts and promotional expenses may put pressure on profit margins, this is expected to be cushioned by reduced expenses related to direct stores, a lower effective tax rate, and decreased impairment charges. The bank anticipates that Li Ning's profits bottomed out in 2025 and will recover to high-single-digit growth in 2026.