KAIYUAN SECURITIES·2024-06-28 09:31Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Insights - The company is expected to achieve significant revenue growth driven by innovation and cold winter conditions, with FY2024 revenue projected at HKD 232.14 billion (+38.4%) and net profit at HKD 30.74 billion (+43.7%) [5][11]. - The brand's down jacket business is expected to continue its strong performance, with a revenue increase of 43.8% to HKD 195.21 billion [11][15]. - The company has successfully expanded its product offerings and optimized its distribution channels, contributing to overall growth [19][20]. Summary by Sections 1. Performance Overview - FY2024 revenue is projected at HKD 232.14 billion, a 38.4% increase from FY2023, with net profit expected to reach HKD 30.74 billion, reflecting a 43.7% growth [8][11]. - The company achieved a strong performance in H2 FY2024, with revenue of HKD 157.42 billion (+48.60%) and net profit of HKD 21.55 billion (+53.49%) [11]. 2. Brand Performance - The main brand, Bosideng, generated revenue of HKD 167.85 billion (+42.7%), while the mid-range brand, Xuezhongfei, saw revenue growth of 65.3% to HKD 20.19 billion [15][19]. - The company has established a brand matrix that includes Bosideng, Xuezhongfei, and Bingjie, with all brands showing growth [15][19]. 3. OEM and Diversified Business - The OEM business reported revenue of HKD 26.7 billion (+16.4%), driven by stable orders from core clients and the addition of new high-quality clients [22]. - The diversified clothing business, primarily focused on school uniforms, achieved revenue of HKD 2.03 billion (+0.3%), with a focus on upgrading distribution channels [26][27]. 4. Channel Performance - Online sales reached HKD 68.36 billion (+41.3%), accounting for 35% of the brand's down jacket revenue, while offline sales increased to HKD 126.85 billion (+45.2%) [19][20]. - The company has optimized its retail network, with a total of 3,217 stores, despite a net decrease of 206 stores [17][20]. 5. Financial Metrics - The company’s gross margin for FY2024 is expected to remain stable at 59.6%, with a net profit margin of 13.2% [8][11]. - Earnings per share (EPS) are projected at HKD 0.3 for FY2024, with a price-to-earnings (P/E) ratio of 15.9 [8][11].