Lyon: Li Ning (02331)'s special dividend is expected to support short-term stock price dividend rate of 18.4%

The Zhitong Finance App learned that Lyon released a research report saying that Li Ning (02331) announced a special dividend of RMB 2.32 (HK$2.71) per share. Based on the closing price of HK$14.72 on November 5, the dividend rate reached 18.4%. The bank expects the stock price to respond positively on November 6, but emphasizes that the 18.4% dividend rate is not a prediction of the increase in stock prices. Based on approximately 2,585 billion shares, the total special dividend is approximately RMB 6 billion (approximately HK$7 billion), which is equivalent to approximately 31% of Li Ning's net cash of RMB 19.4 billion as of the end of the first half of 2026.

Lyon pointed out that this special dividend will help strengthen the balance sheet of Li Ning's largest shareholder, Extraordinary Leadership (00933). If the shareholding remains unchanged on the record date, Extraordinary Lingyue is expected to receive approximately RMB 1.16 billion (approximately HK$1.35 billion) in cash, which would help reduce its debt level if used to repay debts. The bank also pointed out that since the announcement of the potential special dividend, Li Ning's stock price has risen 15.1%, and the fourth quarter results are still under pressure, which may limit the positive reaction of the stock price to the special dividend news.