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 24
- DEBT-EQUITY RATIO (HY) Lowest at -52.84 %
- RAW MATERIAL COST(Y) Fallen by 0% (YoY)
- CASH AND EQV(HY) Highest at HKD 16,799.88 MM
3
With ROE of 11.58%, it has a Attractive valuation with a 1.64 Price to Book Value
- Over the past year, while the stock has generated a return of 0.23%, its profits have fallen by -2.1%
4
Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks
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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Li Ning Co., Ltd.
0.23%
11.85
35.07%
Hang Seng Hong Kong
27.36%
1.06
25.88%
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)
1.18
Tax Ratio
28.46%
Dividend Payout Ratio
50.35%
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
1.64
EV to EBIT
7.39
EV to EBITDA
5.24
EV to Capital Employed
2.63
EV to Sales
0.98
PEG Ratio
NA
Dividend Yield
3.15%
ROCE (Latest)
35.58%
ROE (Latest)
11.58%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for Li Ning Co., Ltd.
Debt-Equity Ratio
Lowest at -52.84 % 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
Cash and Eqv
Highest at HKD 16,799.88 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 18.29%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by 0% (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
Depreciation
At HKD 1,031.3 MM has Grown at 15.98%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (HKD MM)
Here's what is not working for Li Ning Co., Ltd.
Interest Coverage Ratio
Lowest at 1,530.77
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at HKD 174.66 MM
in the last five periods and Increased by 72.54% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Inventory Turnover Ratio
Lowest at 6.03%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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