China's Li Ning drops to six-week low on broker downgrade

Li Ning

31/03/2025 04:58

** Shares of China's home-grown sportswear group Li Ning Co Ltd 2331.HK drop 8.5% to HK$15.7, their lowest since February 13

** Stock marks its biggest intraday pct fall since October 8, and is top pct loser on Hang Seng Commerce & Industry Index .HSNC, which falls 2.4%

** Nomura downgrades Li Ning to "neutral" from "buy" and trims TP to HK$17.40 from HK$20.30, citing it is "not the time to revisit yet"

** Morningstar says Li Ning reported flat revenue and a 9% operating profit decline for H2 2024, while 2025 outlook points to flat revenue growth, indicating slowing growth and margin deterioration

** Li Ning said its 2024 net profit attributable fell 5.5% y/y while revenue rose 3.9% y/y

** The Hang Seng Consumption Index .HSCGSI falls 2%, Hang Seng Index .HSI declines 1.6%

** Stock down 4.5% YTD

 (Reporting by Donny Kwok)

 ((donny.kwok@thomsonreuters.com))