Li Ning, anything is possible.
Unexpectedly, this slogan is also suitable for Li Ning's stock price. Who would have thought that Li Ning, the "light of domestic products", would also fall from the altar, with a market value of more than 200 billion evaporated, and a stock price of more than 80%., what is even more difficult to imagine is that this "light of domestic products" will also encounter the dilemma of performance stalling?
But isn't this a possible outcome!
The stock price ** exceeded 80%, and the market value evaporated by more than 210 billion
Today (December 12th),Hong Kong stocks Li Ning (02331.HK) announced that it intends to repurchase no more than 26.4 billion shares of the company, accounting for 10% of the company's total share capital。According to the announcement, the board of directors has decidedIt will use no more than HK$3 billion to repurchase the company's shares from the open market from time to time within 6 months from the date of the announcement。The announcement also emphasized that the Board of Directors is confident in the Group's business prospects and long-term growth, and believes that the Company's share price is lower than its actual intrinsic value.
Screenshot of Li Ning's announcement).
This repurchase plan was made yesterday (December 11) after the share price of Hong Kong stock Li Ning fell by more than 14% and hit a new lowEveryone can see that this is the company's desire to save the company's plummeting stock price through buybacks
So, why did Li Ning's stock price suddenly fall by more than 14% yesterday? The reason may be related to an acquisition announcement made by the company over the weekend.
On the evening of December 10, Hong Kong stock Li Ning issued an announcement sayingwill cost 22HK$0.8 billion in the purchase of property from Hong Kong property giant Henderson Land。According to the acquisition announcement of Li Ning, the acquired assets are mainly the property business of Henderson Land, and the valuation of the assets as of December 5, 2023 is 24HK$600 millionLi Ning will use part of the property as its headquarters in Hong Kong
Screenshot of Li Ning's announcement).
This is somewhat puzzling, everyone knows that Li Ning is the main brand of domestic sports and leisure clothing, and it is a benchmark enterprise of domestic products in the field of clothing, but it suddenly announced that it would acquire real estate propertiesIs it about to enter real estate? Could it be that even Li Ning, which is labeled as the "light of domestic products", is not easy to sell now?
In this case, there may also be market expectations that Li Ning may enter the real estate market, resulting in the stock price of the day!
Screenshot of the time-sharing trend of Li Ning's stock price on December 11).
Today, with the announcement of Li Ning's HK$3 billion repurchase plan, Li Ning's share price rebounded, opening more than 3% higher at the opening, and once rose more than 5% during the session, and the market value returned to above HK$50 billion. However, compared with yesterday's decline of more than 14%, the effect of announcing a buyback is still relatively small.
In fact, if you look at the stock price trend of Li Ning in the past year and the past two years, you can see that yesterday's decline of more than 14% is nothing at all. On October 26, the direct volume exceeded 20%, the largest decline since the year has exceeded 78%, and since the high in August 2021, it has exceeded 83%!
Screenshot of Li Ning's stock price trend).
You must know that at the high level in August 2021, the market value of Li Ning, the "light of domestic products", once reached 2687The height of HK$7.4 billion, based on today's **HK$50.1 billion,In just two years and three months, Li Ning's market value has evaporated by more than HK$218.6 billion!
It is worth noting that during the period when Li Ning's stock price continued to be the first to be the highest price, Extraordinary China, which was controlled by Li Ning himself, his nephew Li Qilin, and his brother Li Jin, had a high ** Li Ning shares on May 18, 2021, at a price of 63HK$6**60 million shares cashed out 38HK$1.6 billion.
Performance stalled, and operating cash flow was almost halved
Seeing Li Ning's ** price chart, many people may think that it is normal, and there are many "Mao" trends in A-shares in the past two years, such as soy sauce Mao, photovoltaic Mao, home appliance Mao, battery Mao, equipment Mao, etc.
However, Li Ning should still be viewed in the environment of Hong Kong stocks. Indeed, in the past two years, both A-shares and Hong Kong stocks have had many ** trends like this, but there are still big differences between them, for exampleDuring this period, Anta Sports (02020.) of Hong Kong stocks (02020HK) share price fell much less than Li Ning's, with a maximum decline of about 64%.
The reason may still lie in fundamentals, performance growth, and cash flow.
In 2022, Li Ning's revenue will be 2580.3 billion, a year-on-year increase of 143%, achieving a net profit of 406.3 billion, a year-on-year increase of 13%, gross margin of 484%, down 4% year-on-year6 percentage points, and the return on equity fell by 21 percentage point, and the operating cash flow is almost halved!
Screenshot of Li Ning's 2022 financial report).
Screenshot of Li Ning's 2022 financial report).
It can be seen that the net cash flow generated by Li Ning's operating activities in 2022 is 391.3 billion yuan, while the figure in 2021 is 652.5 billion yuan,The year-on-year decline was more than 40%.
However, this is only a comparison of cash flow from operating activities in 2021 and 2022, looking at the overall cash flow situationSince the second quarter of 2021, Li Ning's cash flow has basically been in a state of net outflow
Data**: Straight Flush**).
This change in cash flow trend and change trend is basically consistent with the stock price trend of Li Ning, whose stock price peaked and turned down after the second quarter of 2021, and then continued all the way**.
Of course, it may be too much to say this, from 2020 to the present, Li Ning's annual semi-annual report of cash flow seems to be a net outflow, and then the annual report turns positive, but it is undeniable thatIn the 2022 annual report, Li Ning's cash flow failed to turn positive, but instead showed a huge net outflow!
This abnormal performance of cash flow also seems to indicate that there seems to be something wrong with the operation of Li Ning Company.
More than 14 billion to buy wealth management, too much money or products can't be sold?
The importance of cash flow for a consumer company that is primarily engaged in apparel sales is self-evidentCash flow is basically the lifeline, and without cash flow, it is easy to have problems
However, when we take a closer look at Li Ning's cash flow, we will find that the company's continuous net outflow of cash flow does not seem to be due to the sudden decline in operating cash flow, but because of the company's expenditure on investment cash flow, specifically the cash outflow from large-scale purchase of wealth management products!
It is very clear in Li Ning's 2022 financial reportIn 2022, the company spent 1423.5 billion yuan was purchased for wealth management products, which eventually led to a significant increase in the company's net investment cash flow outflow that year, from a net outflow of 65 in 20213.8 billion to 948.1 billion, the benefit of huge wealth management is to bring more than 1400 million financial income.
Screenshot of Li Ning's 2022 financial report).
Being able to take out more than 14.2 billion funds to buy wealth management shows that Li Ning is definitely not short of money. It's no wonder, after all, it's the "light of domestic products", but there's a problem,Why did Li Ning take so much money to buy wealth management?
Judging from the performance of Li Ning this year,Huge wealth management may be a defensive "winter" behavior of the companyIt also shows that the company's current sales are not very good, and the company does not dare to invest more funds in production and operation activities.
As mentioned above, on October 26, Li Ning's share price suddenly fell by more than 20%, and the direct reason for the sharp drop on the day was that Li Ning released the operation of the third quarter on the evening of the previous day (October 25), which showed thatIn the third quarter, the company's sales slowed down in all channels, among which the e-commerce channel declined, and the company expects the wholesale channel to decline by 10%-20%, and the e-commerce channel will show a single-digit decline
Screenshot of Li Ning's announcement).
Regarding the operation of Li Ning in the third quarter, some analysts saidDue to consumers' sensitivity to **, weak sales of franchise stores, and the greater inventory pressure caused by Li Ning's large single product matrix and higher than that of its peers, ** and offline ** arbitrage has become a bigger problem faced by Li Ning
Source**: The Times).
At present, consumers' consumption decisions largely depend on the absolute level of the bestIt is actually natural for Li Ning, which claims to be the "light of domestic products", to slow down sales due to higher pricing, coupled with the impact of the "Chen Yufei Incident" and the "Dazuofu Incident".
At the Tokyo Olympics in September 2021, Chinese badminton player Chen Yufei was cut by Li Ning's shoe during a match. On September 20, 2022, at Li Ning's new autumn and winter show, there were several sets of army-green clothing in the section with the theme of "Shengong Kaiwu", but the design of the whole set of clothing resembled the military uniforms of the Japanese army invading China, which made people feel extremely uncomfortable.
Data ** Network).
Data ** Network).
With the basis of these events, consumers will also stop and think about it when they pursue the national trendIs Li Ning a real domestic product? Can Li Ning afford the banner of "the light of domestic products"?
Of course, from the perspective of investors, it is still hoped that "everything is possible" Li Ning can carry this banner and always stick to investors with better performance and higher stock price returns!