Why Did One Of China's Biggest Consumer Names Sell-Off 20% Thursday?
Portfolio Pulse from Daniel Harrison
Chinese sportswear maker Li Ning Co Ltd (OTC:LNGGY) (OTC:LNGGF) saw its shares plunge by over 20% after it announced missing Q3 sales expectations. The company reported a decline in point-of-sale distributors and same store sales. Investment bank Nomura lowered its price target for Li Ning due to high inventory levels and expected slowdown in profit growth. Li Ning's performance is seen as a proxy for the health of the Chinese retail market.
October 26, 2023 | 1:43 pm
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NEGATIVE IMPACT
Alibaba's performance could be indirectly affected by the downturn in the Chinese retail market, as indicated by Li Ning's performance.
As Li Ning's performance is seen as a proxy for the health of the Chinese retail market, a downturn in this market could indirectly affect Alibaba's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
JD.com's performance could be indirectly affected by the downturn in the Chinese retail market, as indicated by Li Ning's performance.
As Li Ning's performance is seen as a proxy for the health of the Chinese retail market, a downturn in this market could indirectly affect JD.com's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Similar to LNGGY, Li Ning's missed sales expectations and lowered price target by Nomura could negatively impact LNGGF's stock price in the short term.
The missed sales expectations and lowered price target by Nomura are negative indicators for Li Ning's stock. This could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Li Ning's missed sales expectations and lowered price target by Nomura could negatively impact its stock price in the short term.
The missed sales expectations and lowered price target by Nomura are negative indicators for Li Ning's stock. This could lead to a decrease in investor confidence and a potential drop in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100