ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Li Ning Co., Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.23%
- Healthy long term growth as Net Sales has grown by an annual rate of 15.51% and Operating profit at 21.39%
- Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.58
2
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at HKD 12,890.19 MM
- DEBT-EQUITY RATIO (HY) Lowest at -56.9 %
- NET SALES(Q) Highest at HKD 16,182.41 MM
3
With ROE of 12.12%, it has a Attractive valuation with a 1.74 Price to Book Value
- Over the past year, while the stock has generated a return of 20.71%, its profits have risen by 2.5% ; the PEG ratio of the company is 5.8
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
5
Market Beating Performance
- The stock has generated a return of 20.71% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 8.76%
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Li Ning Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Li Ning Co., Ltd. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Li Ning Co., Ltd.
20.71%
12.70
34.13%
Hang Seng Hong Kong
8.76%
0.45
19.63%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.51%
EBIT Growth (5y)
21.39%
EBIT to Interest (avg)
27.58
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.58
Sales to Capital Employed (avg)
1.13
Tax Ratio
28.46%
Dividend Payout Ratio
51.59%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
49.18%
ROE (avg)
16.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.74
EV to EBIT
7.62
EV to EBITDA
5.49
EV to Capital Employed
2.87
EV to Sales
1.07
PEG Ratio
5.81
Dividend Yield
2.98%
ROCE (Latest)
37.69%
ROE (Latest)
12.12%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 12,890.19 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -56.9 %
NET SALES(Q)
Highest at HKD 16,182.41 MM
RAW MATERIAL COST(Y)
Fallen by -9.41% (YoY
CASH AND EQV(HY)
Highest at HKD 19,836.28 MM
-2What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.71 times
OPERATING PROFIT MARGIN(Q)
Lowest at 14.73 %
Here's what is working for Li Ning Co., Ltd.
Net Sales
Highest at HKD 16,182.41 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (HKD MM)
Debt-Equity Ratio
Lowest at -56.9 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Operating Cash Flow
Highest at HKD 12,890.19 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Cash and Eqv
Highest at HKD 19,836.28 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -9.41% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Li Ning Co., Ltd.
Operating Profit Margin
Lowest at 14.73 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Inventory Turnover Ratio
Lowest at 5.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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