Morgan Stanley: Lower Li Ning's target price to 21.4 Hong Kong dollars, with an "outperform" rating

Golden Ten data, January 9th news, Macquarie published a report, expecting that Li Ning (02331.HK) last year's second half revenue and net profit remained basically flat, and due to lower impairment losses and strict cost control, the operating expense ratio decreased, offsetting the impact of the annual contraction of gross profit margin; the retail sales in the fourth quarter of last year are believed to continue to improve under a low base. The bank expects Li Ning's last year's revenue to rise 1% year-on-year, and the net profit margin to be 10.8%, which is roughly the same as the management's guidance. Macquarie raised its forecast for Li Ning's net profit last year by 6%, but lowered its forecast for this and next year by 3% and 4% respectively, mainly due to the downward adjustment of its revenue forecast. The target price was lowered from 22.6 Hong Kong dollars to 21.4 Hong Kong dollars, with a rating of 'outperform market'.