# Li Ning (2331.HK)

Canonical: https://gigainvestors.com/s/2331.HK

Analysis as of: 2026-10-16T07:38:01.416Z. Financial observations: FY2004–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: HKD 12.78 per share; close as of 2026-10-15.

Estimated value: low HKD 26.78 per share, central HKD 34.90 per share, high HKD 39.64 per share. Buy at or below the central value HKD 34.90 per share. Valuation as of 2026-10-16T07:38:01.416Z; scenarios are not confidence intervals.

Expected annual return: 37.2% at the stated quote. About 37.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.44×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.05×

- FY2018: 0.07×

- FY2019: 0.11×

- FY2020: 0.15×

- FY2021: 0.23×

- FY2022: 0.19×

- FY2023: 0.13×

- FY2024: 0.13×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 22.5%

- ROIC, second-lowest year: 14.9%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 48.7%

- Recent gross margin (lower of latest and 3-year median): 49.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 21.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.8%

- FY2017: 17.8%

- FY2018: 32.6%

- FY2019: 63.9%

- FY2020: 67.8%

- FY2021: 53.9%

- FY2022: 20.0%

- FY2023: 14.9%

- FY2024: 22.1%

- FY2025: 22.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.91×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 16B

- Net income, five-year total: CNY 17B

- Return on incremental invested capital: 294.0%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.0 pp

- Working capital / revenue, final three-year average: 7.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.96×

- FY2022: 0.89×

- FY2023: 0.87×

- FY2024: 0.99×

- FY2025: 0.80×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 17.8% vs 22.1%

- Per-share earnings: 0.21 to 1.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.7%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: CNY 32B

- Cumulative retained earnings: CNY 16B

- Diluted shares, 10-year annual growth: 0.7%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 23.8%

- Per-share value change: CNY 0.95

- Per-share value, starting three-year median: CNY 0.21

- Per-share value, ending three-year median: CNY 1.17

- Buybacks concentrated in cheaper years (correlation): 0.77

- Average buyback yield: 0.7%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.2B

- Cumulative net income, 10 years: CNY 22B

- ROIC, first three-year median: 17.8%

- ROIC, last three-year median: 22.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.29

- FY2017: CNY 0.21

- FY2018: CNY 0.29

- FY2019: CNY 0.60

- FY2020: CNY 0.67

- FY2021: CNY 1.57

- FY2022: CNY 1.54

- FY2023: CNY 1.23

- FY2024: CNY 1.17

- FY2025: CNY 1.14

### accounting: pass

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 1.26×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.97×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.2%

- FY2017: -8.8%

- FY2018: -11.0%

- FY2019: -16.0%

- FY2020: -7.3%

- FY2021: -8.3%

- FY2022: 0.4%

- FY2023: -4.4%

- FY2024: -6.3%

- FY2025: -7.6%

## Holders

## Price story

Down 86% since Nov 2021 · sales +3.2%

Story as of 2026-10-16T10:00:09.681Z; price observation 2026-10-15.

Price needs cash profits to shrink 15.2% a year for ten years

### Sales · FY2024–2025

sales +3.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 8.0B 

- FY2017: CNY 8.9B 

- FY2018: CNY 11B 

- FY2019: CNY 14B 

- FY2020: CNY 14B 

- FY2021: CNY 23B 

- FY2022: CNY 26B 

- FY2023: CNY 28B 

- FY2024: CNY 29B 

- FY2025: CNY 30B 

### Gross margin · FY2025

gross margin 49%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 46.2% 

- FY2017: 47.1% 

- FY2018: 48.1% 

- FY2019: 49.1% 

- FY2020: 49.1% 

- FY2021: 53.0% 

- FY2022: 48.4% 

- FY2023: 48.4% 

- FY2024: 49.4% 

- FY2025: 49.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in leisure; annual sales are CNY 29.6 billion.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2025-12-31 (filed 2026-10-16T07:38:01.416Z); FY2025: revenue 29598417000; grossProfit 14488837000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2331.HK: Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China and internationally. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; and badminton products under the Kason brand name. In addition, the company provides brand licensing, administrative, research and development, and property management services. Further, it operates conventional stores, flagship stores, China LI-NING stores, factory outlets, and multi-brand stores under the LI-NING brand. Li Ning Company Limited was founded in 1990 and is headquartered in Beijing, the People's Republic of China.

### Why customers stay

Margins ranged from 48.4% to 49.4% during 2023–25; it earns 22.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2023-12-31 (filed 2026-10-16T07:38:01.416Z); FY2023: grossProfit / revenue = 48.4%.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2024-12-31 (filed 2026-10-16T07:38:01.416Z); FY2024: grossProfit / revenue = 49.4%.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2025-12-31 (filed 2026-10-16T07:38:01.416Z); FY2025: grossProfit / revenue = 49%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:01.416Z); 10-year return on capital observations [[2016,0.12824272466748643],[2017,0.17779714988466985],[2018,0.3258867251280343],[2019,0.6385692542737389],[2020,0.6782832580985207],[2021,0.5391169353700807],[2022,0.19998045868281905],[2023,0.1487569755848389],[2024,0.22095483302758484],[2025,0.22931145034403083]]; median 0.22513314168580784. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 8.5% of cash earnings; earns over 100% on new investment.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2016-12-31 (filed 2026-10-16T07:38:01.416Z); FY2016: growth capex 110870091.11982155; upkeep 365286908.88017845; owner earnings 595593091.1198215. Growth capex / owner earnings = 0.18615073407142105.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2017-12-31 (filed 2026-10-16T07:38:01.416Z); FY2017: growth capex 57826000; upkeep 369787000; owner earnings 515155000. Growth capex / owner earnings = 0.1122497112519533.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2018-12-31 (filed 2026-10-16T07:38:01.416Z); FY2018: growth capex 166684364.54654413; upkeep 434264635.45345587; owner earnings 692410364.5465441. Growth capex / owner earnings = 0.2407306029506142.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2019-12-31 (filed 2026-10-16T07:38:01.416Z); FY2019: growth capex 0; upkeep 685805000; owner earnings 1455440800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2020-12-31 (filed 2026-10-16T07:38:01.416Z); FY2020: growth capex 0; upkeep 745634000; owner earnings 1755758600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2021-12-31 (filed 2026-10-16T07:38:01.416Z); FY2021: growth capex 0; upkeep 1027754000; owner earnings 3858900400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2022-12-31 (filed 2026-10-16T07:38:01.416Z); FY2022: growth capex 376631000; upkeep 1453794000; cash acquisitions 25937000; owner earnings 3635500600. Growth capex plus acquisitions / owner earnings = 0.11073248069330535.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2023-12-31 (filed 2026-10-16T07:38:01.416Z); FY2023: growth capex 0; upkeep 1815274000; cash acquisitions 199860000; owner earnings 2759903400. Growth capex plus acquisitions / owner earnings = 0.07241557802349169.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2024-12-31 (filed 2026-10-16T07:38:01.416Z); FY2024: growth capex 0; upkeep 1503039000; cash acquisitions 1866557000; owner earnings 2980218600. Growth capex plus acquisitions / owner earnings = 0.626315465583632.

- Source: https://eodhd.com/api/fundamentals/2331.HK.json#2025-12-31 (filed 2026-10-16T07:38:01.416Z); FY2025: growth capex 183221915.5323087; upkeep 1007527377.4676913; cash acquisitions 16500000; owner earnings 2351313822.5323086. Growth capex plus acquisitions / owner earnings = 0.08494056115283369.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:01.416Z); Incremental return on capital 2.93993389007442, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:01.416Z); Dividend observations: [[2016,18062000],[2017,214695000],[2018,214695000],[2019,214695000],[2020,377821000],[2021,515202000],[2022,1194720000],[2023,2174829000],[2024,1443945000],[2025,1363659294]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 19.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2331.HK SharesStats.PercentInsiders = 19.909 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 15.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:01.416Z); Ten-year compound average after fade. Initial solved rate -0.22279457618833537. Price 12.78; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.032152069069535764 → FY2025 0.9092758986388625. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 5.54 per share

- 2016-11: HKD 5.71 per share

- 2016-12: HKD 4.87 per share

- 2017-01: HKD 4.95 per share

- 2017-02: HKD 5.19 per share

- 2017-03: HKD 4.56 per share

- 2017-04: HKD 5.12 per share

- 2017-05: HKD 5.35 per share

- 2017-06: HKD 5.94 per share

- 2017-07: HKD 6.16 per share

- 2017-08: HKD 5.80 per share

- 2017-09: HKD 6.96 per share

- 2017-10: HKD 6.81 per share

- 2017-11: HKD 6.07 per share

- 2017-12: HKD 6.33 per share

- 2018-01: HKD 6.30 per share

- 2018-02: HKD 7.20 per share

- 2018-03: HKD 8.04 per share

- 2018-04: HKD 8.89 per share

- 2018-05: HKD 9.42 per share

- 2018-06: HKD 8.65 per share

- 2018-07: HKD 8.55 per share

- 2018-08: HKD 8.28 per share

- 2018-09: HKD 7.40 per share

- 2018-10: HKD 7.34 per share

- 2018-11: HKD 8.38 per share

- 2018-12: HKD 8.40 per share

- 2019-01: HKD 9.65 per share

- 2019-02: HKD 11.00 per share

- 2019-03: HKD 12.32 per share

- 2019-04: HKD 14.26 per share

- 2019-05: HKD 12.98 per share

- 2019-06: HKD 18.42 per share

- 2019-07: HKD 19.46 per share

- 2019-08: HKD 23.15 per share

- 2019-09: HKD 22.50 per share

- 2019-10: HKD 26.65 per share

- 2019-11: HKD 25.10 per share

- 2019-12: HKD 23.35 per share

- 2020-01: HKD 23.05 per share

- 2020-02: HKD 20.50 per share

- 2020-03: HKD 22.65 per share

- 2020-04: HKD 24.45 per share

- 2020-05: HKD 26.00 per share

- 2020-06: HKD 24.60 per share

- 2020-07: HKD 24.95 per share

- 2020-08: HKD 32.80 per share

- 2020-09: HKD 36.00 per share

- 2020-10: HKD 40.00 per share

- 2020-11: HKD 42.00 per share

- 2020-12: HKD 53.30 per share

- 2021-01: HKD 48.55 per share

- 2021-02: HKD 43.60 per share

- 2021-03: HKD 50.50 per share

- 2021-04: HKD 63.40 per share

- 2021-05: HKD 72.85 per share

- 2021-06: HKD 94.80 per share

- 2021-07: HKD 81.90 per share

- 2021-08: HKD 104.50 per share

- 2021-09: HKD 90.15 per share

- 2021-10: HKD 86.50 per share

- 2021-11: HKD 88.60 per share

- 2021-12: HKD 85.35 per share

- 2022-01: HKD 75.35 per share

- 2022-02: HKD 77.65 per share

- 2022-03: HKD 67.60 per share

- 2022-04: HKD 62.55 per share

- 2022-05: HKD 61.20 per share

- 2022-06: HKD 72.70 per share

- 2022-07: HKD 63.60 per share

- 2022-08: HKD 72.00 per share

- 2022-09: HKD 60.10 per share

- 2022-10: HKD 40.60 per share

- 2022-11: HKD 61.25 per share

- 2022-12: HKD 67.75 per share

- 2023-01: HKD 77.20 per share

- 2023-02: HKD 66.75 per share

- 2023-03: HKD 61.90 per share

- 2023-04: HKD 55.85 per share

- 2023-05: HKD 42.00 per share

- 2023-06: HKD 42.15 per share

- 2023-07: HKD 47.00 per share

- 2023-08: HKD 37.05 per share

- 2023-09: HKD 32.95 per share

- 2023-10: HKD 24.00 per share

- 2023-11: HKD 21.75 per share

- 2023-12: HKD 20.90 per share

- 2024-01: HKD 16.60 per share

- 2024-02: HKD 19.52 per share

- 2024-03: HKD 20.80 per share

- 2024-04: HKD 20.85 per share

- 2024-05: HKD 20.35 per share

- 2024-06: HKD 16.90 per share

- 2024-07: HKD 14.60 per share

- 2024-08: HKD 14.66 per share

- 2024-09: HKD 19.70 per share

- 2024-10: HKD 15.86 per share

- 2024-11: HKD 15.96 per share

- 2024-12: HKD 16.46 per share

- 2025-01: HKD 16.02 per share

- 2025-02: HKD 17.08 per share

- 2025-03: HKD 15.92 per share

- 2025-04: HKD 14.70 per share

- 2025-05: HKD 14.98 per share

- 2025-06: HKD 16.92 per share

- 2025-07: HKD 16.66 per share

- 2025-08: HKD 18.89 per share

- 2025-09: HKD 17.64 per share

- 2025-10: HKD 16.88 per share

- 2025-11: HKD 17.36 per share

- 2025-12: HKD 18.67 per share

- 2026-01: HKD 20.44 per share

- 2026-02: HKD 22.52 per share

- 2026-03: HKD 21.40 per share

- 2026-04: HKD 20.22 per share

- 2026-05: HKD 18.20 per share

- 2026-06: HKD 14.72 per share

- 2026-07: HKD 15.15 per share

- 2026-08: HKD 13.63 per share

- 2026-09: HKD 12.49 per share

- 2026-10: HKD 12.78 per share

## Annual estimated value (HKD per share)

- FY2018: low HKD 4.84 per share, central HKD 5.28 per share, high HKD 5.86 per share

- FY2019: low HKD 7.33 per share, central HKD 7.97 per share, high HKD 8.83 per share

- FY2020: low HKD 8.67 per share, central HKD 9.42 per share, high HKD 10.43 per share

- FY2021: low HKD 19.04 per share, central HKD 21.30 per share, high HKD 23.69 per share

- FY2022: low HKD 20.93 per share, central HKD 26.57 per share, high HKD 30.52 per share

- FY2023: low HKD 24.35 per share, central HKD 33.17 per share, high HKD 38.30 per share

- FY2024: low HKD 28.36 per share, central HKD 37.56 per share, high HKD 42.92 per share

- FY2025: low HKD 26.78 per share, central HKD 34.90 per share, high HKD 39.64 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.