Li Ning sales expected to be stimulated by national pride
■ Li Ning expects its 1H21F net profit to be over Rmb1.8bn, up about 163% yoy, driven by over 60% yoy revenue growth and continuous margin improvement in 1H21F.
■ For the sector, we reiterate Add with s new DCF-based TP of HK$111.0 for Li Ning and HK$215.2 for Anta, as we expect the increase in China-Chic and the Olympic Games in Aug to stimulate national pride and the public’s enthusiasm for sports, which should support strong sales of Chinese sportswear brands.
■ Our top pick in the China sportswear sector is Li Ning.