BOSIDENG(HK:03998)2024-10-28 06:40Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of HKD 6.31 per share, based on a FY25 PE of 18X [2]. Core Insights - The sustained profitability of Moncler and Canada Goose is attributed to precise targeting of high-end consumer demographics, an increase in direct sales channels, and an expansion of product categories. The report highlights that Bosideng has outperformed other leading apparel brands in the domestic and international markets over the past six years, which is closely linked to its reforms and expansions in these areas [2]. - The report projects Bosideng's net profits for FY25 and FY26 to be CNY 35.7 billion and CNY 41.3 billion, respectively, with an upward revision from the previous estimate of CNY 32.4 billion for FY25 [2]. Summary by Sections Company Performance - Both Moncler and Canada Goose have achieved a compound annual growth rate (CAGR) of over 20% in revenue and net profit since their listings, with Moncler showing a CAGR of 20% in revenue and 24% in net profit from 2011 to 2022 [3][4]. - Moncler's revenue in 2022 reached EUR 2.603 billion, while Canada Goose's revenue for FY2023 was CAD 1.217 billion, reflecting a CAGR of 24% from FY2015 to FY2023 [5]. Market Positioning - Moncler has established a strong luxury brand positioning through product, marketing, and channel iterations since its inception in 1952, while Canada Goose emphasizes functionality and Canadian manufacturing in its branding strategy [20][27]. - The report notes that Moncler's direct retail channel accounted for 80% of its sales in 2022, significantly higher than Canada Goose's 67% [35]. Product Strategy - Moncler has diversified its product offerings through initiatives like the Moncler Genius project, which targets younger consumers and aims to extend the brand's appeal beyond traditional outerwear [23][25]. - Canada Goose has expanded its product range to include lightweight down products and non-outerwear items, responding to diverse consumer needs and preferences [27]. Financial Projections - The report anticipates Bosideng's net profit for FY25 to be CNY 35.7 billion, with a target price adjustment reflecting a 15% increase from previous estimates [2]. - The projected net profit for FY26 is CNY 41.3 billion, indicating a positive growth trajectory for the company [2].