Soochow Securities·2024-06-27 23:01Investment Rating - The report maintains a "Buy" rating for Bosideng (03998.HK) [1] Core Views - Bosideng reported FY24 revenue of 23.214 billion yuan, a year-on-year increase of 38.4%, and a net profit of 3.074 billion yuan, up 43.7%, exceeding expectations. The revenue growth was driven by innovation in main brand products and channel optimization, while net profit growth outpaced revenue due to stable gross margins and reduced expense ratios. The annual dividend is set at 0.20 HKD per share, with a payout ratio of 81.1% [2][3] Summary by Sections Financial Performance - FY24 total revenue reached 23.214 billion yuan, with a year-on-year growth of 38.39% - FY24 net profit attributable to shareholders was 3.074 billion yuan, reflecting a year-on-year increase of 43.74% - The EPS for FY24 is projected at 0.28 yuan, with a P/E ratio of 14.80 [2][3][7] Brand Performance - The main brand's down jacket business generated 19.52 billion yuan in FY24, a year-on-year increase of 43.8%, accounting for 84.1% of total revenue, with a gross margin of 65% [2] - Revenue growth by brand: Bosideng +42.7%, Xuezhongfei +65.3%, Bingjie +15.9% [2] - Online and offline revenue growth was 41% and 45% respectively, with online sales accounting for 35% of total revenue [2] Operational Efficiency - Gross margin for FY24 was stable at 59.6%, with a slight increase of 0.1 percentage points year-on-year [2] - The expense ratio decreased by 2.5 percentage points to 41.2%, driven by improved store efficiency and strict cost control [2] - Inventory turnover days improved by 29 days to 115 days, benefiting from enhanced supply chain management and digital transformation [2] Future Outlook - The company aims to focus on down jackets and fashionable functional apparel, with new product categories expected to contribute 10-20% of revenue over the next three years [2] - The net profit forecast for FY25-26 has been raised to 3.61 billion and 4.10 billion yuan respectively, with a projected P/E of 13 and 11 [2]