Ping An Securities·2024-07-10 02:31Investment Rating - The report maintains a "Strong Buy" rating for Bosideng (3998.HK) with a target price of 4 HKD, expecting the stock to outperform the market by over 20% in the next six months [2][12][13]. Core Insights - Bosideng will showcase its brand at the "Newborns of All Things" exhibition in Paris, highlighting the integration of Chinese heritage and contemporary design, which is expected to enhance brand visibility and cultural representation [4][5]. - The company focuses on its main brand, Bosideng down jackets, as the primary growth driver, while also developing the Snow Flying brand and functional tech apparel as new growth avenues, indicating a strategy for sustained revenue growth [5]. - The report projects a significant increase in revenue and net profit, with expected net profits of 3.47 billion CNY, 3.90 billion CNY, and 4.33 billion CNY for the fiscal years 2025, 2026, and 2027 respectively [6][8]. Financial Summary - For FY2024, the company is expected to achieve a revenue of 23.21 billion CNY, a 38.4% year-over-year increase, with a projected net profit of 3.07 billion CNY, reflecting a 43.7% increase [6][11]. - The gross margin is expected to remain stable at around 59%, while the return on equity (ROE) is projected to increase from 22.4% in FY2024 to 27.2% in FY2027 [11][8]. - The company's earnings per share (EPS) is forecasted to grow from 0.28 CNY in FY2024 to 0.40 CNY in FY2027, indicating a positive trend in profitability [11][8].