Li Ning Company Limited (2331.HK) stock analysis

In our weekly check, Li Ning Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About Li Ning Company Limited

Li Ning Company Limited is a Consumer Cyclical company (Leisure) based in China, listed on HKSE as 2331.HK.

What our checks show for 2331.HK

Red flags

• The net margin fell by 7.9 points over 5 years, to 9.9%: the company keeps less of each sale as profit.
• The gross margin fell by 4.1 points, to 49%: costs are rising faster than prices.
• The dividend takes 309% of profit: little cushion if profit falls.
• The stock has fallen as much as 91% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.9 years.

Warning signs

• Analysts expect only about 5% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.8 points from today's 9.9%.
• Revenue grew only 4.7% a year over the last 3 years.
• Earnings per share fell 9.7% a year over the last 3 years.
• Net profit fell 10.3% a year over the last 3 years.
• The net margin is only 9.9%: little room if costs rise.

Strengths

• Debt is low: 0.07x equity.
• Operating cash flow is 1.97x net profit: the profit arrives as real cash.
• Free cash flow is 15.5% of revenue: cash for dividends, buybacks or growth.
• Actively traded: about 24.4 million shares a day.
• Pay in shares is only 5.2% of free cash flow.

Similar companies

BFT.WA · AS · HAS · LTH · 9992.HK · 2020.HK

Questions

What grade does Li Ning Company Limited (2331.HK) have?

In our weekly check, Li Ning Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2331.HK stock?

This week's biggest flags for Li Ning Company Limited: Margins falling, Gross margin falling, Dividend stretched. In total 11 of 25 checks show a warning or a red flag.

What does Li Ning Company Limited do?

Li Ning Company Limited is a Consumer Cyclical company (Leisure) based in China, listed on HKSE as 2331.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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