Core Viewpoint - Bosideng (03998) shares rose over 3%, reaching HKD 5.17 with a trading volume of HKD 103 million, following the release of its interim results for the fiscal year 2025/26, which showed a revenue increase and record profits for eight consecutive years [1] Financial Performance - For the period ending September 30, 2025, the company reported revenue of approximately RMB 8.928 billion, reflecting a year-on-year increase of 1.4% [1] - The profit attributable to equity shareholders grew by 5.2% year-on-year to approximately RMB 1.189 billion, marking a historical high for the interim results [1] Future Outlook - Dongfang Securities anticipates that the company's revenue and profit will accelerate in the second half of the fiscal year 2026 [1] - During the recently concluded Double Eleven shopping event, Bosideng's main brand ranked among the top in the apparel category on Tmall and Douyin, while its sub-brand Xuezhongfei also performed well, establishing a solid foundation for the peak season [1] - The company is expected to maintain steady and sustainable growth over the next three years, supported by its dual-focus strategy and multi-brand matrix centered around its down apparel business [1]

Summary of Bosideng's 2025 Half-Year Earnings Call Company Overview - **Company**: Bosideng - **Fiscal Year**: 2025 - **Industry**: Apparel, specifically down jackets Key Financial Highlights - **Revenue**: Achieved 11.9 billion CNY in the first half of FY2025, a 3% year-on-year increase, marking a historical high for the period [2][3] - **Operating Profit**: Increased by 3.1% year-on-year, reaching 11.9 billion CNY, also a historical high [3] - **Gross Margin**: Slightly improved to 50%, up by 0.1 percentage points [3] - **Inventory Turnover Days**: Decreased significantly to 178 days, down by 11 days year-on-year, indicating improved operational efficiency [3] Business Segment Performance - **Down Jacket Business**: - Revenue grew by 8.3% to 65.68 billion CNY, accounting for 74% of total revenue [2][5] - The main brand performed well, with spring/summer product sales increasing from 15% to 18% of total sales [5] - Offline direct sales channels saw a comparable store growth of 6% [5] - **OEM Segment**: - Revenue declined by 11.7% to 20.4 billion CNY, impacted by external factors such as tariffs and geopolitical issues [5] - **Women's Wear and Diversified Apparel**: - Slight decline in revenue, but minimal impact on overall group performance [5] Market Strategy and Product Development - **New Products and Designer Collaborations**: - Demand for new and designer items exceeded expectations, particularly for the "Puff" product line, which is expected to see significant growth [6][15] - Classic items like the Extreme Cold series are anticipated to remain popular during peak season [6] - **E-commerce Strategy**: - Traditional e-commerce platforms (e.g., Tmall, JD) showed steady growth, with Tmall ranking second and JD first during the Double Eleven shopping festival [7][8] - Douyin (TikTok) saw rapid growth after restructuring its official flagship store [8] Inventory and Channel Management - **Inventory Management**: - Focused on destocking in the first half of FY2025 due to excess inventory from a warm winter in 2024 [9] - Healthy inventory levels maintained, with no anticipated burdens for the second half of the fiscal year [13] - **Channel Strategy**: - Expected revenue split between self-operated and distribution channels to be approximately 70:30 [4][9] Future Outlook - **Growth Projections**: - The company aims for a double-digit growth rate of 10% for the full fiscal year, with the down jacket segment expected to exceed 10% growth in the second half [4][11] - **Pricing Strategy**: - Average selling price (ASP) expected to remain stable or slightly increase compared to the previous year [18][19] - **Store Expansion**: - Anticipated slight increase in total store count, with plans to open and close several stores [20] Brand-Specific Strategies - **Xuezhongfei and Bingjie Brands**: - Focus on online sales with minimal changes in offline store strategy; Xuezhongfei aims to solidify its position in the ice and snow sports market [21] - **Response to Seasonal Sales Pressure**: - Sales performance aligns with expectations due to significant adjustments in inventory, channels, and product innovation [22] Additional Insights - **OEM Order Visibility**: - Long-term demand from large brands is promising, but immediate growth is not expected for the current fiscal year [12] - **Women's Wear Challenges**: - Short-term revenue and profit growth not anticipated; strategies include personnel optimization and product mix adjustments [16][17]

Investment Rating - The report maintains a "Buy" rating for the company [4][9] Core Views - The company is expected to achieve steady growth in the first half of FY2026, with a notable performance in its main product line, down jackets, which showed resilience during the off-season [8] - The company’s revenue and profit are projected to accelerate in the second half of FY2026, supported by favorable inventory levels and an extended sales season due to the late Chinese New Year [8] - The company aims to maintain sustainable growth over the next three years through a dual-focus strategy on its down jacket core business and a multi-brand matrix [8] Financial Performance Summary - Revenue for FY2024A is projected at 23,214 million, with a year-on-year growth of 38.4%, and is expected to reach 34,759 million by FY2028E, with a CAGR of approximately 10.6% [3] - Operating profit is forecasted to grow from 4,398 million in FY2024A to 6,711 million in FY2028E, reflecting a steady increase in profitability [3] - Net profit attributable to the parent company is expected to rise from 3,074 million in FY2024A to 4,879 million in FY2028E, with a CAGR of 11.8% [3] - Earnings per share are projected to increase from 0.26 in FY2024A to 0.42 in FY2028E [3] Valuation Metrics - The target price is set at 6.36 HKD, based on a 17x PE ratio for FY2026 [3][9] - The company’s PE ratio is expected to decrease from 17.1 in FY2024A to 10.7 in FY2028E, indicating improving valuation attractiveness [3] - The PB ratio is projected to decline from 4.0 in FY2024A to 2.5 in FY2028E, suggesting a potential undervaluation over the forecast period [3]

Core Viewpoint - Bosideng's FY25/26 interim results show a steady performance with revenue growth of 1.4% to 8.93 billion yuan and a net profit increase of 5.3% to 1.19 billion yuan, indicating high-quality growth and operational resilience since the strategic transformation in 2018 [1][4] Financial Performance - The company declared an interim dividend of 0.063 HKD per share, with a payout ratio of approximately 55% [1] - The brand's down jacket business, as the core engine, saw an 8.3% revenue increase to 6.57 billion yuan, accounting for 73.6% of total revenue [1] - The main brand, Bosideng, achieved an 8.3% revenue growth to 5.72 billion yuan, while the Snow Flying brand experienced a slight decline of 3.2% [1] - The OEM processing business faced a revenue decline of 11.7% to 2.04 billion yuan due to uncertainties from tariff policies and geopolitical factors [1] Channel Performance - Both self-operated and franchised channels showed steady growth, with self-operated revenue increasing by 6.6% to 2.41 billion yuan and franchise revenue rising by 7.9% to 3.70 billion yuan [2] - The total number of retail outlets for the down jacket business increased by 88 to 3,558, with 3 new self-operated stores and 85 new franchise stores [2] Operational Efficiency - The company's gross profit margin slightly increased by 0.1 percentage points to 50.0% [2] - The net profit margin improved by 0.5 percentage points to 13.3%, despite an increase in sales expense ratio by 1.7 percentage points to 27.5% [3] - Inventory turnover days decreased significantly by 11 days to 178 days, indicating effective inventory management [3] - Cash and cash equivalents reached approximately 3 billion yuan, with net cash value increasing by 38.8 billion yuan year-on-year [3] Long-term Outlook - Bosideng has over 40 years of experience in the down jacket industry, with strong consumer recognition and ongoing expansion into outdoor and functional apparel segments [4] - The company maintains profit forecasts for FY26-28, expecting net profits of 3.9 billion, 4.34 billion, and 4.75 billion yuan, with corresponding P/E ratios of 13, 12, and 11 times [4]

Investment Rating - The report does not explicitly state the investment rating for Bosideng International Holdings Core Insights - The principal brand of Bosideng drove growth in 1H25, while other business segments contracted year-on-year [1][3] - Total operating revenue for 1H25 was RMB 8.93 billion, a year-on-year increase of 1.4%, with profit attributable to owners rising by 5.3% to RMB 1.19 billion [2][8] - The gross profit margin for 1H25 was 50.0%, reflecting a slight year-on-year increase of 0.2 percentage points but a decrease of 7.3 percentage points from the previous half-year [2][8] - The company optimized inventory turnover days to 178 days, down from 189 days in the same period last year [2][8] Revenue Breakdown - Revenue from the Bosideng brand grew by 8.3% to RMB 6.57 billion, accounting for 73.6% of total revenue [3][9] - The ODM business saw a revenue decline of 11.7% year-on-year, while womenswear revenue decreased by 18.6% to RMB 250 million [3][9] - The diversified clothing business, primarily school uniforms, recorded a significant revenue drop of 45.3% to RMB 64 million [3][9] - Raw material sales revenue increased by 22.8% year-on-year, indicating strong demand in that segment [3][9] Operational Efficiency - The company employs a smart distribution center and integrated inventory management to enhance sales growth and manage inventory effectively [4][10] - The operational model allows for rapid response to market changes, contributing to a significant reduction in inventory turnover days [4][10] - AI technology is being utilized to drive apparel design and improve online operations, significantly reducing operational costs [4][10] Marketing Strategy - The company focuses on high-quality store openings in landmark commercial complexes to maximize brand exposure [5][12] - A refined operation model of "unique design per store, specific strategy per store" is being implemented [5][12] - During the Double Eleven shopping festival, the company achieved growth with lighter discounts, ranking first in several e-commerce platforms [5][12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is experiencing positive revenue and profit growth, driven by a new designer series that enhances brand value [5] - The company maintains a strong dividend policy, declaring an interim dividend of HKD 0.063 per share, a year-on-year increase of 5.0% [8] - The company's core business, branded down jackets, saw revenue growth of 8.3% year-on-year, contributing significantly to overall performance [8] Financial Summary - For FY2025, the company is projected to achieve revenue of RMB 25,902 million, with a year-on-year growth rate of 11.58% [7] - The net profit attributable to the parent company is expected to reach RMB 3,514 million in FY2025, reflecting a year-on-year growth of 14.31% [9] - The earnings per share (EPS) is forecasted to be RMB 0.32 for FY2025, with a projected increase to RMB 0.42 by FY2028 [7][9] - The return on equity (ROE) is expected to be 20.77% in FY2026, gradually decreasing to 16.25% by FY2028 [7][9] Business Performance - The company is focusing on a "dual focus" strategy, enhancing operational efficiency through refined store management and channel collaboration [8] - The online revenue for the first half of FY2025/26 increased by 2.4%, with strong performance during the "Double Eleven" shopping festival [8] - The company is actively adjusting its women's clothing and diversified apparel business to improve overall operational and management efficiency [8]

Core Insights - Bosideng's latest financial report for the 25/26 fiscal year shows impressive mid-term performance, with revenue reaching 8.928 billion and net profit at 1.201 billion, marking year-on-year growth rates of 1.4% and 5.2% respectively [1] - The down jacket segment continues to grow rapidly, with revenue increasing by 8.3% year-on-year, supported by growth in both self-operated and wholesale channels [1] - The overall gross margin and operating profit margin have improved, standing at 50.0% and 17.0% respectively, indicating strong profitability [1] - Inventory turnover days decreased by 11 days to 178 days, reflecting improved operational efficiency [1] Brand Strengthening - Bosideng is focusing on a "global leading down jacket expert" strategy, emphasizing differentiation and internationalization to enhance brand strength [4] - The company has implemented a "four-dimensional differentiation" strategy to upgrade brand value across various categories, demographics, and market levels [4] - Significant investment in the Snow Flying brand aims to position it as "China's first brand in ice and snow down jackets," with recent data showing a turnaround in performance [4][5] - The rebranding of the Bingjie brand targets the new generation of high-intelligence consumers, with a focus on inventory reduction and product updates [4] Product Innovation - Bosideng is leveraging consumer insights and product innovation to activate diverse consumption scenarios, driving high-quality development [10] - The "Master Puff" down jacket series addresses urban consumers' needs for warmth and style, leading to rapid growth in this product category [11] - The AREAL series, designed for urban elites, combines functionality and elegance, successfully addressing consumer pain points [12][13] Channel Optimization - Bosideng is enhancing channel efficiency through refined operations, focusing on high-quality development [15] - The company is expanding flagship stores and optimizing single-store operations to improve customer experience and store efficiency [16][17] - A user-centered, omnichannel ecosystem has been established, enhancing operational capabilities and increasing member contributions [18][19] Conclusion - Bosideng's high-quality growth stems from disrupting traditional rules in the down jacket sector, expanding seasonal and scenario limitations, and redefining luxury through collaborations with international designers [20][21] - The company is poised for continued high-quality growth, supported by strong sales momentum in the down jacket segment during the current sales season [22]

Core Insights - Bosideng reported a mid-term performance for the fiscal year 2025/26, achieving revenue of approximately RMB 89.28 billion, a year-on-year increase of 1.4%, and a net profit of about RMB 12.01 billion, up 5.2%, marking a historical high for the same period [1] Business Performance - The core business of Bosideng showed strong performance, with revenue from branded down jackets increasing by 8.3% to approximately RMB 65.68 billion, driven by a 6.6% increase in self-operated channel revenue to RMB 24.11 billion and a 7.9% increase in wholesale channel revenue to RMB 37.01 billion [1] - The company is positioned as a "global leader in down jackets," focusing on product innovation to enhance brand value and internationalization [1] Product Innovation and Collaborations - Bosideng collaborated with top luxury brand creative director Kim Jones to launch the high-end product line Bosideng AREAL, integrating high fashion aesthetics with 49 years of expertise in down jacket craftsmanship [2] - The company also partnered with "functional fashion guru" Errolson Hugh to introduce the VERTEX three-in-one down jacket series, aiming to provide an all-scenario wearing experience [2] Market Strategy - Bosideng focuses on the main track of fashionable functional technology apparel, continuously optimizing and expanding product lines such as sun-protective clothing and down jackets, appealing to the outdoor and sports lifestyle of younger consumers [2] - The brand's consumer structure is becoming younger, with a significant increase in consumers under 30 on major e-commerce platforms like Tmall and JD, indicating enhanced brand value [2] Channel Strategy - The company emphasizes core categories and quality reputation as key assets, expanding market presence through product iteration and innovation while avoiding blind expansion [3] - Bosideng adapts its channel strategy to align with evolving consumer demands, enhancing operational efficiency through the expansion of flagship stores and distinctive brand stores [3] Online Sales Growth - In the first half of the fiscal year 2025/26, Bosideng's online sales revenue reached RMB 14.26 billion, a year-on-year increase of 2.2%, with a total of approximately 21.4 million members on Tmall and JD platforms [4] - The brand also gained over 1 million followers on Douyin, totaling approximately 11 million followers on the platform by September 30, 2025 [4] Inventory Management - The company improved its gross profit margin by 1.7% to approximately RMB 44.67 billion, supported by an efficient inventory management system that reduced inventory turnover days to 178 days, down 11 days year-on-year [4] - This reduction in inventory turnover days reflects Bosideng's effective product management capabilities and operational resilience in responding to market changes [4]

Core Viewpoint - UBS reported that Bosideng (03998) announced its financial results for the first half of the fiscal year 2026 ending September, with revenue and profit meeting the bank's expectations [1] Group 1: Financial Performance - Bosideng's management indicated that offline retail sales (including direct sales and distributors) achieved double-digit year-on-year growth from October to November [1] - The company's strategy to assist franchisees in clearing old inventory has shown positive results, leading to a strong recovery in franchisee confidence [1] Group 2: Market Positioning - UBS believes that Bosideng's core brand focuses on the high-end market, with a clear and differentiated product mix that allows it to effectively capture various consumer segments [1] Group 3: Price Target and Rating - Based on unchanged profit forecasts and updated risk-free rate assumptions, UBS raised the target price from HKD 5.87 to HKD 6.20, maintaining a "Buy" rating [1]

Core Viewpoint - UBS reports that Bosideng (03998) has released its financial results for the first half of the fiscal year ending September 2026, with both revenue and profit meeting expectations [1] Group 1: Financial Performance - Bosideng's management indicated that offline retail sales (including direct sales and distributors) achieved double-digit year-on-year growth from October to November [1] - The strategy of assisting franchisees in clearing old inventory has shown positive results, leading to a strong recovery in franchisee confidence [1] Group 2: Market Positioning - UBS believes that the core Bosideng brand focuses on the high-end market and has a clear, differentiated product mix, allowing it to effectively capture various consumer segments [1] Group 3: Price Target and Rating - Based on unchanged profit forecasts and updated risk-free rate assumptions, UBS raised the target price from HKD 5.87 to HKD 6.20, maintaining a "Buy" rating [1]