Institution: Li Ning's profit margin may be under pressure due to large discounts, and the company's rating has been downgraded from buy to hold.

Dahua Jixian's report stated that Li-Ning may continue to heavily discount in the second half of the year, which could put pressure on the full-year gross profit margin. This Chinese sportswear company has had significant discounts on all sales channels in the first half of the year and the first few months of the second half, and analysts expect this trend to continue. The company may also face higher advertising and promotion costs related to the Chinese Olympic Committee. Meanwhile, according to Li-Ning management, the decrease in foot traffic in stores in the third quarter may indicate challenges for offline sales in the second half of the year. Dahua Jixian has downgraded Li-Ning's stock rating from buy to hold, but has maintained the target price at 18.90 Hong Kong dollars.