China's sportswear group Li Ning rises on share buyback plan

Li Ning

12/12/2023 02:36

** Shares of Li Ning Co Ltd  2331.HK  rise 5% to HK$19.22,
their biggest intraday pct gain since Nov 3 
    ** Stock is the second-biggest pct gainer in Hang Seng
Commerce & Industry Index  .HSNC  and third biggest in Hang Seng
Index  .HSI 
    ** Chinese sportswear group plans to repurchase shares on
the open market for up to HK$3 bln ($384.3 mln) within six
months as the current share price is below its intrinsic actual
value  
    ** Co says its business operation or the cash flow position
will not be adversely affected by the repurchases of shares 
    ** The buyback plan came a day after Li Ning said to buy a
Hong Kong commercial property for HK$2.21 bln, sending its stock
down more than 14% to the lowest since March 2020
    ** Citi says Li Ning announced its share repurchase plan
following market's negative reaction to its Hong Kong property
acquisition  
    ** We welcome Li Ning's new efforts to enhance shareholders'
value via share repurchase - Citi 
    ** Hang Seng Commerce & Industry Index  .HSNC  rises 1.1%,
Hang Seng Index  .HSI  gains 0.7%
    ** Stock down 71.7% YTD 

   ($1 = 7.8061 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))