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JPM Downgrades LI NING to Neutral; Top Pick ANTA SPORTS
2026-09-02 12:36:24
China's sportswear industry is entering a more challenging phase, JPMorgan opined in a research report. While 1H results were better than market concerns, retail momentum slowed in 2Q, and the performance gap among companies widened further.

ANTA SPORTS (02020.HK) outshone, with sales/ core earnings growing 13%/ 13% respectively, markedly ahead of LI NING (02331.HK) (+3%/ +5%) and XTEP INT'L (01368.HK) (-1%/ -10%).

The broker remained positive on the long-term structural growth of China's sportswear industry, backed by rising health awareness and policy support, but believed short-term share price returns will increasingly be driven by individual companies' execution capabilities.

The industry is shifting from a broad-based recovery to execution-led opportunities. Against this backdrop, ANTA SPORTS remains the broker's top pick with an Overweight rating and TP of HKD130; LI NING was downgraded from Overweight to Neutral; and XTEP INT'L maintained its Overweight rating based on valuation considerations.
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AASTOCKS Financial News
Website: www.aastocks.com