Li Ning Company Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is Li Ning Company a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = HK$31.97b | Revenue (TTM) = HK$35.07b
Market Cap = HK$31.97b | Estimated Revenue = HK$36.19b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = HK$16.50b | Revenue (TTM) = HK$35.07b
Enterprise Value = HK$16.50b | Forward Revenue = HK$36.19b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Li Ning Company Stock Analysis
Analyst Opinions
39 Analysts have issued a Li Ning Company forecast:
Analyst Opinions
39 Analysts have issued a Li Ning Company forecast:
Li Ning Company Events
Past Events
|
MAR
18
Q4 2025 Earnings Call
6 months ago
|
StocksGuide Free
Li Ning Company — Q4 2025 Earnings Call
1. Management Discussion
Analysts, investors, good morning. Welcome to Li Ning Company Limited's 2025 Annual Results Announcement. First of all, let me introduce to you our management: Executive Chairman and Joint CEO, Mr. Li Ning; Executive Director and Joint CEO, Mr. Qian Wei; Group Vice President and CFO, Mr. Zhao Dong Sheng. So today, our agenda is that Mr. Zhao will go through the 2025 financial review, and then the Chairman will talk about strategic direction, followed by Mr. Qian on operational highlights, then there will be a Q&A. Mr. Zhao, please.
Good morning, everyone. I am Zhao Dong Sheng. Now I will walk you through our 2025 financial review. In 2025, we deepened our focus on our core business and strengthened our foundation, achieving the following results. Financially, our revenue was up 3.2%, reaching RMB 29.598 billion. Gross margin decreased by 0.4 percentage points to 49%. Our company concentrated our resources on core business segments, strengthened brand value delivery and continuously optimized cost efficiency through channel integration and refined operations, ultimately achieving net profit of RMB 2.936 billion and net profit margin of 9.9%. Overall liquidity remained strong with net operating cash flow of RMB 4.852 billion. Average working capital as a percentage of revenue was 7.7% Cash conversion cycle was 37 days, an increase of 2 days compared to same period last year, maintaining a healthy level.
The Board of Directors proposed a final dividend of RMB 23.36 per share. Combined with the interim dividend of RMB 33.59 per share already paid, total annual dividend is RMB 56.95 per share with dividend payout ratio maintained at 50%, ensuring consistent shareholder returns. For operations, retail sell-through for Li Ning Core Brand remained flat year-on-year across all channels. New product sell-through in physical stores accounted for 83% of total physical store sales, maintaining a reasonable level with healthy product efficiency. At year-end, omni-channel inventory to sales ratio was 4 months with inventory levels and aging structure remaining healthy. Our group's revenue increased by 3.2% year-on-year, primarily driven by impressive growth in specialty categories, which fueled overall revenue growth. Among these, the running category maintained strong momentum with revenue growing by over 10%.
Badminton category achieved a 30% revenue increase, supported by growing brand mindshare in the specialty market and ample production capacity. In 2025, the share of revenue across all channels remained balanced and healthy. Specifically, e-commerce revenue accounted for 31%, remaining stable. Direct retail revenue declined by 1 percentage point to 23% due to store structure optimization. Wholesale revenue was up 1 percentage point to 46%. New product sales from off-line channels within the past 6 months accounted for 83% of total off-line sales, remaining at a healthy and reasonable level. In terms of channels, the total number of POS in 2025 was 7,609, up 24 year-on-year. Among these, the number of Li Ning brand stores decreased by 26, while number of LI-NING YOUNG POS was up 50. During the year, overall domestic consumer demand remained in a gradual recovery phase with off-line sales continuing to face pressure, while e-commerce business also faced challenges of slowing growth and intensifying competition.
Overall, sell-through remained flat year-on-year with e-commerce sell-through growing mid-single digit year-on-year. Off-line revenue declined by single -- off-line sell-through declined by low single digit year-on-year with average off-line retail prices slightly down year-on-year. Off-line discount deepening by about 1 percentage point, average unit price down low single digit, while sales volume remained stable year-on-year. Li Ning's wholesale business, excluding LI-NING YOUNG, saw a year-on-year increase of 33 POS with full year revenue growing by 7% year-on-year. Revenue from specialty stores such as badminton and table tennis was up 22%, driving growth in wholesale revenue.
During the year, based on actual operating conditions at the retail level, our company recently adjusted the sell-in schedule for distributors and wholesale channel maintained healthy. Excluding revenue from shipments to specialty channels, wholesale revenue was up low single-digit percentage, while wholesale sell-through declined a low single-digit percentage in a challenging consumer environment. Our core strategy is to make long-term investments in our distributor network. By establishing a distribution model and strengthening systematic management, we empower our partners to enhance operational quality and efficiency in key areas such as channels, merchandise and retail, thereby creating sustainable value returns for the company.
Number of direct retail POS was down 59 year-on-year. Revenue declined by 4% year-on-year. Decline in direct retail revenue was primarily due to reduction in number of stores resulting from store portfolio optimization. In this challenging environment, we'll continue to focus on establishing a sustainable high-efficiency single-store operating model to drive efficiency improvement in our direct retail channel. During the year, gross margin was down 0.4 percentage points to 49%, mainly due to the following factors: one, direct retail channels, weaker consumer demand led to deeper discounts, causing the group's gross margin to decline 0.3 percentage points. Two, wholesale business, product mix adjustments and cost optimization contributed to a 0.2 percentage point increase in our gross margin.
Three, DTC channels, a decline in the share of total sales caused the group's gross margin to decrease by 0.2 percentage point. Four, Other business units, channel restructuring caused the group's gross margin to decrease by 0.1 percentage point. The 3.2% increase in revenue resulted in a RMB 333 million increase in gross profit. In terms of expense management, we maintained a focused strategy, allocating resources precisely to core growth areas to drive sustained release of long-term value. Thanks to our effective planning and continuous optimization of channel structure and expansion strategies, sales-related variable expenses decreased by a total of RMB 283 million. Specifically, variable expenses related to direct retail revenue decreased by RMB 265 million. Expenses related to e-commerce operations increased by RMB 6 million. Expenses related to logistics and new business initiatives, down CNY 24 million (sic) [ RMB 24 million ].
Advertising and marketing expenses increased by RMB 445 million with expense ratio rising by 1.2 percentage points year-on-year to 10.7%. Rise in marketing expenses was mainly due to new Olympic sponsorship costs. In 2026, we'll fully enter a full-fledged Olympic marketing year, which will also lead to a further increase in marketing expenses and the expense ratio for 2026. Other expenses increased by RMB 18 million. Other income and interest income decreased by RMB 73 million, primarily due to lower interest income resulting from declining interest rates. Income tax expense increased by RMB 157 million, mainly due to a combination of factors, including exchange rate fluctuations and returns on capital. We have implemented more rational planning of domestic and overseas capital structure resulting in the provision of corresponding deferred income tax, which led to an increase in tax rate for the current year.
Overall, our operating profit margin rose by 0.4 percentage points from 12.8% in the same period last year to 13.2%. Net profit margin decreased by 0.6 percentage points from 10.5% last year to 9.9%, with profit margin performing better than expected. Regarding channel inventory, total channel inventory in 2025 increased by mid-single digit year-on-year, remaining at a reasonable level. Omni-channel inventory turnover was 4 months, and inventory structure remained healthy. Going forward, we will continue to strengthen our supply chain responsiveness and through dynamic adjustments to our inventory strategy, adapt flexibly to rapid changes in market and consumer trends to ensure that omni-channel inventory structure and turnover rates remain healthy.
Regarding our inventory, the cost of inventory before provisions increased by 3% year-on-year in 2025, which is a reasonable increase relative to revenue growth of 3.2%. Overall inventory levels and age structure remains stable and healthy. This achievement is attributable to our ongoing efforts to advance refined management. Through detailed planning, flexible supply chain and digital support, we have continuously optimized omni-channel inventory turnover and product life cycle management, which has effectively supported the business' steady growth. Regarding trade receivables compared to a 3.2% increase in revenue, our trade receivables before provisions rose by 36%. This was primarily due to e-commerce platforms making advanced payments in 2024, which led to a decrease in the accounts receivable balance at the end of 2024.
In 2025, payment schedule of e-commerce platforms returned to normal. Receivable days was 15 days, an increase compared to the previous year. Trade receivables remain at a reasonable and healthy level. Trade receivables due within 90 days maintained a healthy rate of 96%. Our support for strategic partners has always been grounded in the philosophy of mutual healthy growth. Thanks to our past strategic support for partners and our joint efforts, we have worked together to continuously optimize channel efficiency, helping channel partners maintain healthy operations and making the overall business ecosystem more robust. Our working capital remains at a healthy level, accounting for 7.7% of annual revenue, which provides us with ample resources to fuel business growth. Cash flow from operating activities remained robust and ample with a net cash inflow of RMB 4.852 billion.
Net cash increased by RMB 1.81 billion year-on-year to RMB 19.974 billion. These ample cash reserves provide us with a solid financial foundation and flexible allocation capabilities, enabling us not only to effectively address operational pressures caused by market fluctuations, but also to swiftly capitalize on opportunities as they arise. In 2025, China's economy continued its overall stable and steadily improving development trajectory, though consumer confidence and demand remained in the face of adjustment and recovery. Looking ahead to 2026, we will continue to deepen our expertise and strengthen our foundations, driving sustainable business growth through our core product categories, while actively exploring new growth areas to enhance our brand's competitive edge and build momentum for further market share expansion. Based on this, we anticipate full year revenue growth of high single digit in 2026.
As we enter the second year of the Olympic sponsorship cycle, we'll continue to increase investment in brand building and specialized resources as well as further strengthen our support for China's sports sector. Consequently, we expect the full year net profit margin to be in the high single-digit range. At the same time, we are fully confident in the medium- to long-term development of China's sports footwear and apparel industry as well as the Li Ning brand. That concludes the financial section. Next, please welcome our Chairman to review the key strategic directions for 2025. Thank you.
Thank you, Dong Sheng. In 2025, the nationwide sports craze and the national strategy to build a sports power nation will jointly inject new momentum into the industry, driving continuous upgrading of sports consumption. Li Ning Group remains committed to professional innovation at its core, continuously building and deepening the Li Ning experience value. As a steadfast participant supporter and practitioner of Chinese sports, the Li Ning brand continues to contribute its strength. Throughout the year, we partnered with the Chinese Olympic Committee to support Chinese athletes in shining on the field of play, actively transforming the momentum of this collaboration into brand influence. At the same time, we helped ignite the nation's passion for sports, driving product and brand development through innovation to consolidate our market leadership and move forward hand-in-hand with China's sports sector.
We continue to advance our single brand, multiple categories diversified channel strategy, driven by technological innovation and professional sports resources. We're making comprehensive strides across 6 core categories, running, basketball, training, badminton, table tennis and sports casual, while successfully expanding into emerging segments such as outdoor sports, tennis and pickleball to create new business opportunities. In terms of channels, we are actively exploring new store formats such as Loong stores and outdoor stores to reach consumers across multiple tiers with diverse needs, resulting in the continuous enhancement of our brand competitiveness and market influence. In 2025, we continue to go depth of the professional training area and set up more channels and to achieve better results of the retail.
Among the running business is 10% up, training category 5% up, that shows our competitiveness of the product capacity in the core business markets. Basketball revenue is down 19%. The reasons are mainly because of the declining enthusiasm of the consumer market. In the meantime, we actively adjusted the market landscape of the basketball. Lifestyle, the care market is impacted by the negative momentum of the market down 9%. In the future, we will optimize the marketing and the product portfolio in this category and make the best out of that and build up our strength from those weaker area. In the meantime, we are active in making our position in the promising area through innovation and development, we are putting our presence in basket -- in tennis, pickleball and other emerging category of sports, and we found really good momentum from those emerging areas.
In 2025, our group continued to make more efforts in the running business, and we include enhanced the portfolio of the running shoes and precisely match the demand with different product offerings. For the whole year, professional running shoes sales volume was over 26 million pairs. Among those sales achievements, ULTRALIGHT 22 and Flash was the key 3 major product categories and achieved 11 million pairs of sales. Technology development is the driver of our further development. At the end of last year, Ultra 9 was launched that was equipped with the capsule technology. It is the latest development of this category that enables the user to be agile and stable. Among the running business and the professional tournaments, we are making our presence there as well. We signed the contract with 73 champions (sic) [ championships ] and our products were showed in the podium 145 times.
In 2019, we helped 277 champions and claimed the medals at the podium 522 times. We joined our -- we worked together with the marathons at different cities like Wuxi, Hangzhou, and Shenzhen in Beijing for those top runners who finished the game within 1.5 hours and the proportion of Li Ning shoes was definitely the #1. In Shanghai, among the top 3, Li Ning was also the most used brand. Basketball is the area we continue innovation and we are working together with the top tournaments and the players to transform the enthusiasm to the consumption power and enhance the brand influence. Within last year, we launched the brand new series of the products that is Yushuai 20. This product is enabled by our technology platform, capsule. The capacity and the functionality was enhanced and Yang Hansen who is now playing at NBA is also using our products. We are crossing over with different brands and players to promote our products at different occasions, including the street basketball.
We are working with the NBA China and using the best of the chance in Macau and we are working with the Way of Wade and Jimmy Butler in San Francisco to launch the JB4 basketball shoes. All of those market campaigns attract a lot of the attention from the basketball community. Training category is also enabled by technology, and we developed the aerospace level thermal technology platform. So the winter training outfit is enhanced the humidity and the thermal capsule capacity was enhanced. For the men's products, the core products made the sales record over 2 million. For the women's products, we are focusing on the urban scenarios and through our cutting (sic) [ cutting edge ] and various style designs, we enhanced the vitality of those women sports players and 80% of our products in this category were sold out in the last year and the business was enhanced because of those developments.
Casual and Lifestyle business is positioned by striking the balance of functionality and aesthetic value, and we cross over with the classic culture and Chinese culture. Together with the table tennis player Wang Chuqin, we make the latest product that is showing the Chinese culture and the aesthetic value and also building up the confidence among the young people in China. We are making the Chinese-based -- Chinese festival and Chinese cultural occasion to do our marketing campaigns and incorporate the [ Guochao ] Forbidden City and other traditional Chinese culture elements into the design of the products. We continue to do R&D of our technology.
Technology is the foundation and the ultra lifestyle is the application scenario. We have 4 IPs set on apparels. Wanlongjia is enabled by the stormproof, waterproof and humidity management functionality. It is a breakthrough of the function of this kind of a jacket that enable the user to use it in the very harsh conditions. Longke series is designed by new functionality to make the demand for the windproof and rainproof. For the boots, we can use our bots at different occasions like the hiking and the forest so that we have something to offer for different function and the demand. Together with the Chinese Olympic Committee, we have the mission that is to build up the national pride through our brand power. In 2025 in October of last year, Chinese Olympic Committee together with Li Ning will launch the 2026 Winter Olympics Chinese athlete's official suits.
In February 2026, the Chinese athletes wearing Chinese -- Li Ning's products and the equipment showing our appearance and outfit at the opening ceremony of the Winter Olympics is showing the design and the technology from China. In 2025, the end of last year, we launched the Loong Store and also the [ Wanlongjia ] product series, where we have the crossover with the National Olympic with the brand of China with Li Ning. And then we can penetrate our brand awareness into the public and also meet the demand for the general public on daily uses. In 2026, earlier this year, again, we launched our products in Milan Fashion Show and launched our winter series of 2026. And the starting point was the historical athlete of the brand.
We took hindsight of the past design and we redeveloped the traditional designs of our brands and transformed the sports functionality to the fashion elements and we launched the professional equipment for skiing. Looking forward to the future, Li Ning will continue to develop the Chinese within sports development. Together with the Olympian Committee and the athletes of China, we will go together with them from hand in hand and bringing the cutting-edge sports technology with the latest design from China. And we are helping the Chinese athletes to achieve the best out of their performance. Now this is my -- now I pass the floor to my colleague to give us the latest about the strategic development.
I'm Qian Wei. Good morning. Now I'd like to give you a review of the operation in 2025. In 2025, the foundation of the operation has been consolidated. As the partner of the Chinese Olympic Committee, we have the sponsorship and the franchising also the marketing campaigns, then the brand has been enhanced in the awareness and the revenue was up 3.2% to RMB 29.5 billion. The net profit margin is 9.9% is in line with the expectations. Within 2025, professional sports continue to contribute to the revenue. It's accounting 56% of the total professional running shoes technology is evolved and more portfolio has been launched. The more resources has allocated. Therefore, the revenue is up 10%. The total consumption amount is over 26 million among that related 3 IP make the sales revenue 11 million pairs. Traditional comprehensive training expanded the coverage to women and other professional users.
And we also give more applications in the men's business. Badminton is showing the great results. The record sales volume was over 5.5 million and the badminton shoes portfolio's enhanced the reputation is building up. The revenue is up over 30%. Because of the strong competition and the weaker demand, basketball and the casual sports business is under pressure. We, in one hand, controlling the shipment amount of the basketball and making more efforts in marketing and the development of the sales. On the other hand, we will do the adjustment on the portfolio of the products to make our products more competitive. In the last year, the efficiency of operation was rather stable and the sold-out rate for the new products was around 7% to 8%. Discount rate for the new arrivals was like 0.4 percentage points more. In the future, we will do more process management and have a better results in discount rate and the sold-out rate.
The inventory sales ratio was around 4 months and the self-owned inventory cost is up by single digit and the age of the inventory is rather healthy and in line with the expectation of the company. In the last year, the off-line revenue was down by the low single digits and traffic is also down low single digits and digit was down 1%. The per unit price was down by low single digits, and we are still facing challenges. Well, on one hand, we are enhancing the efficiency of the stores, but we are opening up new stores, new projects to boost the confidence and the experience of the consumers, so we have better conversion rate. In 2026, we will be prudential to face the uncertain market conditions and make the best out of the current situation. We will be more comprehensive, more better prepared and then we can deliver the target. In 2025, we will continue to optimize the structure of the channels and also bring something new. We will close down the low performers and reform 479 stores.
By the end of last year, the average store area was 240 square meters. The efficiency was 284,000 million (sic) [ RMB 284,000 ] and we have 91% the presence of the core business area that shows our competitiveness in the high-end market. We are also working with the top outlet groups, and we achieved the landscape and the planning of the outlets. We are also working with the Forbidden City and to work together on the IP development. So the brand power will be enhanced. We will bring more new types of the stores, and we have the independent stores at the old store and the Loong Store. The image of the store will be leveled up at the largest store, we have 1,455 and the Generation 9 store, we have 1,834. And in the future, we will continue to optimize the structure of the channels and continue to bring something new and improve the efficiency of the stores. E-commerce, as we all know that the e-commerce competition in 2025 was getting more fierce. And so we are setting up more channels and collaborating between online and off-line.
Overall speaking, the e-commerce performance was rather in line with the expectation. The traffic was growing up in the middle single digit. On the efficiency of operation, we have the operation of the content and all channel O2O conversion and association rate then the traffic is up 12%. The business conversion rate was stable and the discount rate was added 1 percentage point. The key IP sales and the incubation of new IPs are both ongoing. In 2025, ULTRALIGHT 2025 basketball shoes [ Lin Yun and Lin Ying ] and the running shoes, those new IPs are definitely the heat and the popular products. For those key IP and SMU, they are in the pipeline of our development, and we will continue to bring more depth to the key IP sales volume and the online, off-line will have the synergy and the efficiency of the inventory will also be improved. Therefore, the healthy level will be maintained for the inventory.
For Kids business, we will continue to improve our efficiency and bring better structure of the products. The shoes is taking 47%, 2.5% more. The overall performance has been enhanced through the operation enhancement and the quality of the management. We are making the presence in the key market, emerging markets and the strategic outlets. The off-line sales traffic is up to 10% to 20% discount rate is up 0.8 percentage points. The per unit price was growing up by low single digits. This is my review of the operation in 2025. Looking forward in 2026, we will continue to get the bottom right and bring more market shares to our company. We will continue to work on the professional and innovative business category and products and to bring our endeavors to the new channels and the new scenarios, then we can make the company's development healthy and continuous and even sustainable. Thank you very much.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Financial data from Li Ning Company
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 35,073 35,073 |
3%
3%
100%
|
|
| - Direct Costs | 17,751 17,751 |
3%
3%
51%
|
|
| Gross Profit | 17,322 17,322 |
3%
3%
49%
|
|
| - Selling and Administrative Expenses | 12,678 12,678 |
11%
11%
36%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 5,258 5,258 |
11%
11%
15%
|
|
| - Depreciation and Amortization | 313 313 |
69%
69%
1%
|
|
| EBIT (Operating Income) EBIT | 4,945 4,945 |
1%
1%
14%
|
|
| Net Profit | 3,522 3,522 |
8%
8%
10%
|
|
In millions HKD.
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Company Profile
Li Ning Co., Ltd. engages in the provision of sporting goods. The company focuses on the research and development, design, manufacture, distribution, and retail of products including footwear, apparel, equipment, and accessories for professional and leisure purposes. It operates through the LI-NING Brand and All Other Brands segments. The company was founded by Ning Li in 1989 and is headquartered in Beijing, China.
StocksGuide Premium
| Head office | Cayman Islands |
| CEO | Mr. Li |
| Employees | 5,152 |
| Founded | 1989 |
| Website | www.lining.com |


