Shares of Li Ning Co Ltd (02331.HK), a prominent Chinese sportswear group, plummeted 9.09% in intraday trading, reaching a six-week low. The sharp decline comes in the wake of a broker downgrade and concerns over the company's financial performance.

Nomura has downgraded Li Ning to "neutral" from "buy" and reduced its target price to HK$17.40 from HK$20.30, citing that it's "not the time to revisit yet." This downgrade follows Li Ning's recent financial report, which revealed flat revenue and a 9% operating profit decline for the second half of 2024. Morningstar analysts noted that the company's 2025 outlook points to flat revenue growth, indicating slowing growth and margin deterioration.

Li Ning's full-year 2024 results showed a 5.5% year-on-year decrease in net profit attributable to shareholders, while revenue increased by a modest 3.9%. The stock's decline has made it the top percentage loser on the Hang Seng Commerce & Industry Index, which itself fell 2.4%. The broader Hang Seng Index also declined by 1.6%, reflecting overall market weakness. Year-to-date, Li Ning's stock has now dropped 4.5%, highlighting the challenges faced by the company in the current economic environment.