December 11th,Li Ning, the leading domestic sports brand, suffered a gap and fell by 1429%，And since the beginning of 2023,Its cumulative decline is as high as 7262%。
Li Ning has the reputation of "the light of domestic products", and the endless ups and downs in recent years have caused many investors to question, and the stock price gap ** has made many investors' hearts cold.
Judging from the news, the direct "fuse" of the company's stock price drop is an announcement to buy a house in Hong Kong, and the topic is directly full.
Li Ning's "** property market, but investors don't buy it."
Specifically, after trading on December 10, Li Ning issued an announcement saying that its indirect wholly-owned subsidiary, High Match Limited, and Henderson Land (00012HK) entered into a sale and purchase agreementIt is proposed to start with 22HK$0.8 billionAcquisition of a company principally engaged in property investment (the "Target Company").
The main asset of this target company is property, whileThe property is an entire buildingThe total floor area is approximately 9,600 square feet and its total gross floor area is approximately 144,000 square feet. The building consists of 22 floors of commercial office space and two floors of retail space.
According to the announcement, under Hong Kong generally accepted accounting principles, in 2021 and 2022, the revenue of the target company was 0HK$3.5 billion, 0HK$500 millionLoss after tax was 0HK$1.7 billion, 0HK$8 billion. In addition,At the end of 2022, the net asset value of the target company was 27HK$3.3 billion.
It is reported thatA portion of the property may be used as Li Ning's Hong Kong headquarters.
Li Ning believes that the acquisition of the property for the company's Hong Kong headquartersIt demonstrates the company's confidence in the future of Hong Kong's business and marks the implementation of the plan to strengthen its international business development.
It is worth mentioning that some investors pointed out that since the second half of 2023,Hong Kong's property market is constantly **, and Li Ning is actually "**" to buy a house.
Some investors are more optimistic, believing that this shows that Li Ning is relatively wealthy. However, more investors do not buy this acquisition, thinking that when the stock price lasts, it is better to buy back with money, and buying a house is not a proper business.
And judging by the stock price performance on December 11, investors who questioned the acquisition had the upper hand.
The high-end narrative of domestic products failed, and the performance showed a decline
In fact, as the leading sports brand in China, Li Ning wants to explore the Hong Kong market and international business, and this reason is also reasonable.
The reason why the stock price appeared because of the news of buying a house may be because of the poor performance of Li Ning's stock price, there are too many people, and investors are a little rumoredThe fundamental reason behind this is that Li Ning's performance in recent years has been weak, which has eroded investor confidence.
The data shows that in the past few years, Li Ning's revenue and net profit attributable to the parent company have recorded continuous growth, which is also the reason why its stock price has been rising all the way at that time.
StillIn 2022, Li Ning began to show signs of "increasing income but not increasing profits".Revenue increased by 14 percent year-on-yearOn the basis of 31%, the net profit attributable to the parent company only increased by 1 year-on-year32% to 406.4 billion yuan (RMB, the same below).
After entering 2023, the situation continues to deteriorate, with revenue in the first half of the year increasing by 1298% to 1401.9 billion yuan,The net profit attributable to the parent decreased by 3 year-on-year11% to 21$2.1 billion.
In addition, the company's operating data released after market hours on October 25 showed that in the third quarter, the retail turnover of Li Ning points of sale (excluding Li Ning Young) on the entire platform only achieved a mid-single-digit year-on-year growthLess than market expectations.
and Anta Sports (02020., which is also a leading sports brandHK) not only achieved profit growth in the first half of 2023, but also had better sales growth in the third quarter than Li Ning, and even Xtep International (01368.).HK also outperformed Li Ning.
Combined with the development in recent years, since 2018, under the strategy of national tide and high-end, as well as the influence of the Xinjiang cotton incident, Li Ning has been smooth sailing and has continuously raised prices, which has constituted the driving force for continuous growth in performance.
However, after 2022, Li Ning's high-end narrative of domestic products has gradually become weak, and the younger generation of consumers does not seem to be willing to pay for Li Ning's "high-end", and its continuous price increase measures have also been questioned by many consumers as "cutting leeks".
In the final analysis, in the eyes of many consumers, Li Ning's current brand power cannot support the company's so-called "high-end" positioning for the time being, nor is it worthy of its continuous development.
After losing the hearts and minds of consumersLi-Ning's inventory has also become a problem. In the first half of 2023,The company's average inventory turnover days were 57 days, up from 55 days in the same period last year. Under the strategy of discounting**, the gross profit margin of Li Ning was weakened, from 53% in 2021 to 48% in the first half of this year8%。
Under various unfavorable factors, Li Ning lowered its full-year sales guidanceLowered its sales growth guidance for 2023 from around 13% to 17% to single-digit year-on-year growth.
In the face of this situation, it is normal for investors to feel confused about the future of Li Ning, and the flight of funds is not unexpected, and the news of spending 2.2 billion Hong Kong dollars to buy a house has only accelerated the process.
The effect of internationalization is not obvious, and it is difficult to get support for buying a house
It is worth noting that as a well-known domestic sports brand, Li Ning also has the ideal to go overseas and Nike (NKEus), Adidas wrestling his wrist is also the proper meaning.
It is understood that less than 10 years after its establishment, Li Ning put forward the strategy of brand internationalization. As early as 2000, Li Ning expanded its franchise dealers in 9 European countries, including Spain, Greece and France, and Santander, Spain became the landing city of Li Ning's first brand image store.
But the effect is quite insignificant.
In 2009, Li Ning launched the second internationalization strategy, and set a bold goal of becoming one of the world's top five sporting goods brands in 2018 and achieving 20% of its revenue from overseas.
In order to achieve this goal, Li Ning has also made a lot of efforts. For example, in March 2021, Viva China, the largest shareholder of Li Ning, joined hands with Lane Capital to acquire Clarks, a long-established British national footwear brand, for £100 million.
However, the financial report for the first half of 2023 shows that the Chinese market has achieved 1372.9 billion yuan in revenueIt accounted for 97 percent of the current revenue93%。
It can be seen that the contribution of overseas markets is very small, and the effect is still not significant.
Overall, the internationalization strategy is of course very important to Li Ning. It's just that after so many years of tossing, the overseas market has not brought much help to Li Ning's performance.
At this time, Li Ning said that he would spend 2.2 billion Hong Kong dollars to buy a house, just to gain a foothold in Hong Kong and open up overseas markets, which is naturally difficult to gain the recognition of some investors.
Nowadays, on the road to high-end, Li Ning still needs to face the resistance of Nike and Adi, and looking back behind him, brands such as Anta and Xtep are also approaching, and it is worth paying attention to how Li Ning will open up the situation.
Author: Yan XIV.