Bank of America Securities issued a research report stating that LI NING's (02331) 2025 results exceeded expectations. Management guidance for 2026 points to both revenue growth and net profit margin reaching high-single-digit percentages, which also surpassed forecasts. The firm upgraded LI NING's rating from "Neutral" to "Buy" and raised the target price from HK$20.2 to HK$25. The report indicated 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 badminton and outdoor segments are also increasing. Although discounts and promotional expenses may pressure the profit margin, reductions in directly-operated store-related expenses, a lower effective tax rate, and decreased impairment charges are expected to provide a buffer. The institution anticipates that profits bottomed out in 2025 and will recover to high-single-digit growth in 2026.