By Megan Cheah
Shares of Li Ning rose sharply on Friday after the Chinese sportswear maker's full-year earnings beat consensus estimates.
The stock surged as much as 13% to 22.38 Hong Kong dollars, equivalent to US$2.86, before paring gains to trade at around 11% higher. The Hong Kong-listed stock is on track for its highest one-day percentage gain since September 2024.
The rise likely stems from the Beijing-based company's earnings beating analysts' estimates, despite profit for the year ending December falling 2.6% to 2.94 billion yuan, or US$426.1 million.
Revenue for the period rose 3.2% to 29.60 billion yuan, broadly in-line with forecasts.
Its profit surpassed consensus estimates by around 9.0%, Citi analysts Xiaopo Wei and Vincent Young said, citing lower-than-expected selling expenses after Li Ning shuttered some direct retail stores.
Analysts from DBS Group Research also cheered the profit beat, which they said comes despite intensified promotional activities and costs related to marketing for the Olympics.
However, Citi reckoned the company could potentially open more direct retail stores this year, which could drive up store-related expenses in 2026.
Both banks retained their buy ratings on Li Ning's stock.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
03-20-26 0105ET
