Core Viewpoint - The report from Huaxi Securities indicates that the recent acquisitions of chip companies by the company are expected to enhance profit margins, capitalizing on the rapid growth of the outdoor industry, which is becoming a new growth point in the apparel sector [1] Company Summary - The company is focusing on improving product functionality, increasing marketing investments, and enhancing store efficiency to boost brand strength and profitability [1] - The successful acquisition of G2Touch is primarily benefiting from technology development and expansion into downstream customers, with potential growth opportunities in the automotive sector [1] - The company is leveraging its ONCELL technology advantages and aims to develop INCELL technology, with new acquisitions expected to create complementary advantages and contribute to performance growth [1] Product Development - The company has launched four new outdoor smart products: lower limb exoskeleton, 5G smart outdoor watch, smart skiing helmet, and suspended mirror high-definition outdoor cinema, all of which show improvements in assistive effects, battery life, adaptability, lightweight design, and smart interaction [1] Financial Outlook - The company maintains its profit forecast for 2025 and raises the profit estimates for 2026-2027, with the closing price on December 1, 2025, at 11.85 yuan corresponding to PE ratios of 44, 33, and 28 for 2025, 2026, and 2027 respectively [1]

Market Overview - On December 1, the securities sector rose by 0.44% compared to the previous trading day, with Guolian Minsheng leading the gains [1] - The Shanghai Composite Index closed at 3914.01, up 0.65%, while the Shenzhen Component Index closed at 13146.72, up 1.25% [1] Individual Stock Performance - Guolian Minsheng (601456) closed at 10.54, with a gain of 3.03% and a trading volume of 720,300 shares, amounting to a transaction value of 760 million [1] - Other notable gainers included: - Zhuhai Dream Travel (601211) at 19.62, up 2.40% [1] - Changjiang Securities (000783) at 8.12, up 2.27% [1] - Conversely, Tianfeng Securities (601162) saw a significant decline of 7.66%, closing at 4.46 with a trading volume of 6,572,300 shares [2] - Dongfang Caifu (300059) decreased by 1.32%, closing at 23.09 with a transaction value of 7.102 billion [2] Capital Flow Analysis - The securities sector experienced a net outflow of 1.852 billion from institutional investors, while retail investors saw a net inflow of 1.846 billion [2] - Notable capital flows included: - Guolian Minsheng had a net inflow of 25.68 million from institutional investors, but a net outflow of 52.52 million from retail investors [3] - Xinyang Securities (601377) had a net inflow of 14.65 million from institutional investors, with retail investors contributing a net inflow of 363.22 million [3]

Core Insights - The recent commercialization of Google's TPU is impacting NVIDIA's strong ecosystem, but a coexistence of related ecosystems is expected in the future [1] - The TMT sector, including telecommunications, is facing short-term valuation corrections due to geopolitical conflicts, the US-China tech rivalry, and uncertainties in AI investments [1] - Long-term trends in the TMT sector, such as 6G development, domestic substitution, and military industry growth, are anticipated to catalyze market opportunities in computing power leasing, satellite communications, and 6G [1] Group 1 - The acceleration of commercial aerospace is expected to boost satellite internet applications [2] - The National Space Administration has launched an action plan for high-quality development in commercial aerospace by 2027, indicating a dedicated regulatory body for the industry [2] - The issuance of satellite internet licenses is a significant step towards commercial operation, which is expected to drive the entire industry chain towards scaling [2] Group 2 - Recommended beneficiaries in satellite communication and satellite IoT include companies like Chengchang Technology, Guobo Electronics, and Zhenlei Technology [3] - The terminal antenna industry chain includes listed companies such as Chengchang Technology and Tongyu Communication, as well as non-listed companies like Tianrui Xingtong [3] - Key players in terminal chips and core networks include China Mobile, China Unicom, and China Telecom [3] Group 3 - Testing instruments related to the industry include companies like Kunheng Shunwei and Chuangyuan Xinke [4]

Core Viewpoint - The article emphasizes that China is still in the early stage of transitioning between old and new driving forces, with technology being the medium to long-term focus, currently in the "hardware first" phase, and yet to enter the "application scenario expansion" phase [1] Group 1: Industry Insights - Technology is identified as the main theme for medium to long-term investment, with current emphasis on hardware development [1] - The capital expenditure of technology giants is below expectations, and the high concentration in the sector may lead to increased market volatility [1] Group 2: Market Outlook - The performance in 2026 is expected to outperform that of 2025, indicating a potential for better returns in the near future [1] - The low interest rate environment continues to support dividend logic, which may benefit from pure bond substitution logic and temporary risk-averse sentiment [1]

Group 1 - The market is characterized by a slow bull trend with reduced volatility and improved Sharpe ratios compared to the past, but subjective long positions have limited improvement and continue to underperform quantitative strategies [2] - The current market structure shows an increase in allocation funds and quantitative funds, while subjective stock-picking funds are limited, leading to a higher demand for valuation and safety margins from subjective long positions [2] - A significant change in domestic demand is needed to unlock market potential, with recommendations to focus on resource and traditional manufacturing sectors, as well as companies expanding overseas [2] Group 2 - December is expected to open a favorable window for "profit-making effects," with the correlation between market movements and fundamentals being weaker in November [3] - The "spring market" period, which lasts about 20 trading days from the Spring Festival to the Two Sessions, is anticipated to provide good profit opportunities, especially for stocks with positive earnings forecasts [3] - Many sectors have already adjusted by approximately 20%, making December a suitable time for observation and potential investment [3] Group 3 - The cross-year market is supported by easing overseas disturbances and improved risk appetite, with expectations for clearer economic and industrial development guidance from year-end meetings [4] - The market is advised to maintain a bullish outlook and continue to invest in Chinese assets, focusing on high-growth sectors such as AI, advantageous manufacturing, and structural recovery in domestic demand [5] - Key sectors to watch include resource products, new consumption, and technology growth, particularly in AI and domestic computing power industries [5] Group 4 - The market is likely to choose an upward direction after three months of consolidation, with a high probability of a cross-year rally in December [6] - Investment opportunities are expected to arise from the political bureau meeting and central economic work meeting, focusing on resource products, service consumption, and technology sectors [6] - The dual focus on large-cap indices like the Shanghai 50 and the Sci-Tech 50 is recommended for the upcoming cross-year market [6] Group 5 - The market sentiment is expected to improve as December approaches, with significant policy observations anticipated, which could catalyze the cross-year market [8] - Key investment themes include commercial aerospace, AI applications, energy storage, military industry, and innovative pharmaceuticals, particularly those related to the "14th Five-Year Plan" [8] - The improvement in overseas liquidity and the adjustment of previous high-performing sectors are also expected to benefit the market [8] Group 6 - Historical data indicates that policy factors are crucial for the initiation of cross-year rallies, with macroeconomic data playing a less decisive role [9] - The cross-year rally typically starts before a weak market, driven by expectations of policy easing and improved liquidity [9] - Key sectors to focus on include semiconductors, energy storage, robotics, AI applications, and pharmaceuticals, especially if new policy directions emerge from the central economic work meeting [9]

Group 1 - The 2025 Analyst Conference and the 7th Sina Finance "Golden Unicorn" Best Analyst Awards Ceremony took place on November 28, gathering over 300 authoritative scholars, public and private fund leaders, listed company chairpersons, top fund managers, and chief analysts in Shanghai to discuss future opportunities in the Chinese capital market [1] - The results of the 7th Sina Finance Golden Unicorn Best Analyst selection were announced [2] Group 2 - The top analysts in the food and beverage industry for the 7th Sina Finance Golden Unicorn Awards are as follows: 1. First place: Guotai Junan Securities Research Team, led by Chief Analyst Zi Meng and Co-Chief Analyst Yan Huijing, with team members including Xu Yang, Yao Shijia, and others 2. Second place: GF Securities Research Team, led by Chief Analyst Fu Rong, with team members including Hao Yuxin, Wu Siying, and others 3. Third place: Changjiang Securities Research Team, led by Chief Analyst Dong Siyuan, with team members including Xu Shuang, Fan Chenhao, and others 4. Fourth place: Huachuang Securities Research Team, led by Chief Analyst Ouyang Yu, with team members including Fan Zipan, Tian Chenxi, and others 5. Fifth place: Zheshang Securities Research Team, led by Chief Analyst Yang Ji, with team members including Sun Tianyi, Du Wanze, and others 6. Sixth place: Huaxi Securities Research Team, led by Chief Analyst Kou Xing, with team members including Lu Zhouwei, Wu Yue, and others 7. Seventh place: Dongwu Securities Research Team, led by Chief Analyst Su Cheng, with team members including Guo Xiaodong, Li Yinqi, and others 8. Eighth place: Shenwan Hongyuan Securities Research Team, led by Chief Analyst Lv Chang, with team members including Zhou Yuan 9. Ninth place: Tianfeng Securities Research Team, led by Chief Analyst Zhang Xiaoqian and Co-Chief Analyst Chen Xiao, with team members including Tang Jiaquan, Li Benyuan, and others [3]

Core Insights - The 7th Sina Finance "Golden Unicorn" Best Analyst Awards ceremony was held on November 28, 2025, in Shanghai, gathering over 300 influential figures from academia, public and private equity, listed companies, top fund managers, and chief analysts to discuss future opportunities in China's capital market [1][2]. Group 1: Best Analysts in Fixed Income Research - The top fixed income research team was awarded to the Zheshang Securities Research Team, led by Chief Analyst Qin Han and Co-Chief Analyst Du Jian, with a team comprising eight members [3]. - The second place was awarded to the Huachuang Securities Research Team, led by Chief Analyst Zhou Guannan, with a team of seven members [3]. - The third place went to the Industrial Securities Research Team, led by Chief Analyst Zuo Dayong and Co-Chief Analyst Xiao Yu, with a team of six members [3]. - The fourth position was secured by the Caitong Securities Research Team, led by Chief Analyst Sun Binbin, with a team of five members [3]. - The fifth place was awarded to the Huaxi Securities Research Team, led by Chief Analyst Liu Yu, with a team of ten members [3]. - The sixth position was taken by the Shenwan Hongyuan Securities Research Team, led by Chief Analyst Huang Weiping, with a team of five members [3]. - The seventh place was awarded to the Tianfeng Securities Research Team, led by Chief Analyst Tang Haiqing, with a team of ten members [3]. - The eighth position was secured by the Changjiang Securities Research Team, led by Chief Analyst Zhao Zenghui, with a team of three members [3].

Core Viewpoint - Huaxi Securities maintains a "Buy" rating for Bosideng, citing a favorable low base for the second half of the year, potential for accelerated growth in direct sales and online channels, and ongoing growth in outdoor product categories [1] Company Performance - For FY25/26H1, Bosideng reported revenues of 8.928 billion, down from 6.568 billion for down jackets, with net profit attributable to shareholders at 1.189 billion, aligning with market expectations [2] - The main brand showed strong growth, with down jacket revenue increasing by 8.3%, driven by store openings, while online growth slowed [2] - Other income for FY25/26H1 was 239 million, up from 196 million in the same period last year, with goodwill impairment of 71 million [2] Revenue Breakdown - Revenue from down jackets, OEM, women's wear, and diversified clothing for FY25/26H1 was 6.568 billion, 2.044 billion, 251 million, and 64 million respectively [2] - The brand revenue breakdown for down jackets showed Bosideng at 5.719 billion, Xuezhongfei at 378 million, and Bingjie at 15 million [2] Channel Performance - Revenue from direct sales, wholesale, and other (raw material sales) was 2.411 billion, 3.701 billion, and 456 million respectively, with year-on-year growth of 6.6%, 7.9%, and 22.8% [3] - Online revenue for the group reached 1.426 billion, with a year-on-year increase of 2.2% [3] Operational Metrics - The company had 3,558 stores, with a net increase of 88 stores (+11.6%), including 1,239 direct and 2,319 franchise stores [3] - Gross profit margin for FY25/26H1 improved by 0.2 percentage points to 50.0% [4] Financial Ratios - Operating profit margin (OPM) and net profit margin for FY25/26H1 were 17.0% and 13.3%, respectively, with increases of 0.3 and 0.5 percentage points [4] - The increase in OPM was attributed to a decrease in sales expense ratio and an increase in the proportion of other income [4] Inventory Management - As of FY25/26H1, inventory decreased by 20% to 4.735 billion, with inventory-to-revenue ratio at 53.0%, down 14.4 percentage points [5] - Inventory turnover days were 178 days, a decrease of 11 days year-on-year [5] E-commerce Growth - The brand gained approximately 400,000 new members on Tmall and JD platforms, totaling around 21.4 million members as of September 30, 2025 [6] - The brand also has approximately 11 million followers on Douyin [6]

Core Viewpoint - Huaxi Securities maintains a "Buy" rating for Bosideng (03998), citing a favorable low base for the second half of the year, potential for accelerated growth in direct sales and online channels, and ongoing growth in outdoor product lines [1] Company Performance - For FY25/26H1, Bosideng reported revenues of 8.928 billion, down from 6.568 billion for down jackets, with a net profit attributable to shareholders of 1.189 billion, aligning with market expectations [1] - The company’s other income reached 239 million, up from 196 million in the same period last year, while goodwill impairment was 71 million, slightly up from 70 million [1] - The net profit, excluding other income and goodwill impairment losses, was 1.078 billion, reflecting a year-on-year growth of 6.9% [1] - A mid-term dividend of 0.063 HKD per share was proposed, with a payout ratio of 60.87% [1] Revenue Growth - The revenue growth for down jackets and the main brand Bosideng was 8.3%, driven primarily by store openings, although online growth has slowed [2] - Revenue breakdown for FY25/26H1 includes down jackets at 6.568 billion, OEM at 2.044 billion, women's wear at 251 million, and diversified clothing at 64 million [2] - The brand revenue for down jackets includes Bosideng at 5.719 billion, Xuezhongfei at 378 million, and Bingjie at 15 million [2] - Direct sales, wholesale, and other channels generated revenues of 2.411 billion, 3.701 billion, and 456 million respectively, with year-on-year growth of 6.6%, 7.9%, and 22.8% [2] - Online revenue for the entire brand was 1.426 billion, up 2.2%, with down jacket online direct sales and franchise sales at 1.324 billion and 102 million respectively [2] - The total number of stores reached 3,558, with a net increase of 88 stores, representing an 11.6% growth [2] Profitability Metrics - The gross margin for FY25/26H1 improved by 0.2 percentage points to 50.0%, with specific margins for down jackets at 59.1%, OEM at 20.5%, women's wear at 59.9%, and diversified clothing at 27.8% [3] - Operating profit margin (OPM) and net profit margin for FY25/26H1 were 17.0% and 13.3%, respectively, reflecting increases of 0.3 and 0.5 percentage points [3] - The increase in OPM was attributed to a 1.7 percentage point decrease in sales expense ratio and a 0.4 percentage point increase in other income proportion [3] Inventory Management - As of FY25/26H1, the company’s inventory was 4.735 billion, a decrease of 20% year-on-year, with raw materials, work-in-progress, and finished goods accounting for 35.7%, 1.6%, and 63.7% respectively [4] - The inventory-to-revenue ratio was 53.0%, down 14.4 percentage points year-on-year, with inventory turnover days reduced to 178 days, a decrease of 11 days [4] - Accounts receivable increased by 1.1% to 4.6 billion, while accounts payable decreased by 0.2% to 7.4 billion [4] E-commerce Growth - In FY25/26H1, Bosideng added approximately 400,000 members on Tmall and JD platforms, totaling around 21.4 million members as of September 30, 2025 [5] - The brand also has approximately 11 million followers on Douyin [5]

Market Overview - On November 27, the securities sector experienced a slight increase of 0.0%, with Western Securities leading the gains. The Shanghai Composite Index closed at 3875.26, up by 0.29%, while the Shenzhen Component Index closed at 12875.19, down by 0.25% [1]. Individual Stock Performance - Western Securities (002673) closed at 8.03, with a rise of 1.65% and a trading volume of 489,700 shares [1]. - First Capital Securities (601136) closed at 21.08, up by 1.25% with a trading volume of 394,600 shares [1]. - Huaxin Co. (600621) closed at 15.31, increasing by 0.72% with a trading volume of 101,900 shares [1]. - Other notable performers include: - Dream Travel (601211) at 19.00, up 0.53% [1] - Caitong Securities (601108) at 8.12, up 0.50% [1] - Zhongtai Securities (600918) at 6.64, up 0.45% [1]. Fund Flow Analysis - The securities sector saw a net outflow of 358 million yuan from institutional investors, while retail investors contributed a net inflow of 527 million yuan [2]. - Notable net inflows from retail investors were observed in: - CITIC Securities (600030) with a net inflow of 29.61 million yuan [3] - Western Securities (002673) with a net inflow of 17.21 million yuan [3]. - Conversely, significant net outflows were recorded for: - CITIC Securities (600030) with a net outflow of 60.64 million yuan from institutional investors [3] - Huaxin Co. (600909) with a net outflow of 6.32 million yuan from retail investors [3].