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Investing.com -- Li Ning (HK:2331) stock jumped 8.8% in Hong Kong trading following the sportswear company’s first half 2025 results, which showed better-than-expected operating expense management despite market concerns about its new China Olympic Committee sponsorship.
The Chinese athletic apparel maker reported a 3.3% YoY increase in revenue for the first half, in line with previously reported retail sales figures and tracking ahead of its full-year guidance of flat YoY growth. The company’s net margin came in at 11.7%, likely exceeding its full-year guidance of "high single digit ppt."
Li Ning’s operating profit, calculated as gross profit less SG&A expenses, grew 2% YoY, outperforming sellside consensus by 15%. This performance helped ease investor concerns about potential cost pressures.
"We note that the market was concerned about the new China Olympic Committee sponsorship causing OPEX to surge. However, 1H25 OPEX appears to be under control. More non-cash amortizations," Jefferies analysts commented.
The company will host an earnings call on Thursday morning Hong Kong time to provide further details on its performance and outlook.
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