BOSIDENG(03998) 广发证券·2024-07-23 03:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.39 HKD per share based on a 15x price-to-earnings ratio for the fiscal year 2024/25 [5][19]. Core Views - The company's fiscal year 2023/24 performance exceeded expectations, with revenue of 23.214 billion RMB, a year-on-year increase of 38.4%, and a net profit of 3.074 billion RMB, up 43.7%. The earnings per share (EPS) was 0.28 RMB, and the annual dividend was approximately 0.25 HKD per share [3][9]. - The company is expected to maintain steady growth in fiscal year 2024/25, driven by brand enhancement, channel optimization, and customer experience improvements in its main brand, Bosideng. The OEM business is also anticipated to grow rapidly due to recovering demand and supply chain advantages [3][17]. - The recent share placement is not expected to impact the company's operations negatively, as it reflects the controlling shareholder's confidence in the company's future development [3][18]. Summary by Sections Financial Performance - For the fiscal year 2023/24, the company reported a revenue of 23.214 billion RMB, a 38.4% increase year-on-year, and a net profit of 3.074 billion RMB, reflecting a 43.7% growth. The EPS was 0.28 RMB, with a dividend yield of 6.23% [9][10]. - The brand down jacket business generated 19.521 billion RMB in revenue, up 43.8%, while the OEM business brought in 2.670 billion RMB, a 16.4% increase. Women's clothing revenue was 820 million RMB, up 16.6%, and diversified clothing revenue was 203 million RMB, a slight increase of 0.3% [10][12]. Business Segments - The main brand, Bosideng, is expected to continue its rapid growth through brand positioning and product innovation. The Snow Flying brand is also projected to capture the high-value down jacket market, while the OEM business is set to benefit from improved demand and supply chain management [3][17]. - The online sales for the brand down jacket business reached 6.836 billion RMB, a 41.3% increase, accounting for 35.0% of total revenue [10][14]. Profitability and Forecast - The report forecasts EPS for the fiscal years 2024/25, 2025/26, and 2026/27 to be 0.33 RMB, 0.38 RMB, and 0.44 RMB, respectively. The company is expected to maintain a strong return on equity (ROE) of 22.38% in 2024/25 [19][24]. - The overall gross margin for the company is 59.6%, with the brand down jacket business margin at 65.0%. The OEM business margin is 20.6%, reflecting effective cost management [14][15].