Lyon: Li Ning's retail sales and discount pressure have continued to intensify since October, maintaining a "Hold" rating.

Jin10 data reported on October 27th that Lyon issued a report indicating that Li Ning (02331.HK) recorded a single-digit decline in retail sales across the entire platform in Q3 year-on-year, with a slowdown in quarterly growth, failing to meet internal targets. By channel, online sales saw a high single-digit rise year-on-year, outperforming the offline channel which recorded a high single-digit decline. Inventory days have climbed to 5 to 6 months, and discount intensity has expanded to a low single-digit increase compared to the same period last year. Since October, retail sales and discount pressures have continued to intensify. The bank stated that while it maintains the performance guidance for Li Ning for the 2025 fiscal year, it believes that Li Ning will face challenges in recovering retail sales and maintaining stable gross margins in Q4 of 2025. It maintains a 'Hold' rating with a target price of 16 HKD.