李宁(2331.HK)：2H margin trends the key to investment case，Maintain Neutral，TP HK$8.50

机构：麦格理

评级：中性

目标价：8.50港元

Key points

Company margin guidance implies 2H18 margin to see faster expansion；

Consensus expectations on margins already at high end of guidance ；

We see need for investment in brand as key risk to margin trajectory .

Earnings and target price revision

Minor change in FY18 earnings but lifted FY19 earnings by 3.5%. TP lowered slightly to HK$8.5/sh vs HK$ 8.6/sh previously due to FX assumption change  

Price catalyst

12-month price target: HK$8.50 based on a PER methodology. 

Catalyst: 3QFY18 operating data, 2HFY18 results, M&A, potential dividend announcement  

Action and recommendation

Maintain Neutral. Li Ning is trading at 21x FY19 PER.