BOSIDENG(03998) 国信证券·2024-12-02 04:04Investment Rating - The investment rating for the company is "Outperform the Market" [2][3]. Core Views - The company achieved a net profit growth of 23% in the first half of the fiscal year, with a revenue increase of 18%. The brand's down jacket business performed particularly well, reflecting strong market leadership [2][8]. - Despite a challenging macroeconomic environment, the company continues to show robust growth, with historical highs in performance for the first half of the fiscal year [32]. - The company maintains a stable gross margin, with a slight year-on-year decrease of 0.1 percentage points to 49.9%, attributed to changes in sales structure and product mix [8][15]. Summary by Relevant Sections Financial Performance - For the first half of the fiscal year ending September 30, the company reported a revenue of 8.8 billion yuan, up 17.8% year-on-year, and a net profit of 1.13 billion yuan, up 23% year-on-year [2][8]. - The revenue breakdown includes brand down jackets (6.06 billion yuan, +22.7%), OEM processing (2.32 billion yuan, +13.4%), women's wear (310 million yuan, -21.5%), and diversified clothing (170 million yuan, +21.3%) [8][9]. Profitability Metrics - The operating profit margin improved by 0.2 percentage points to 16.7%, while the net profit margin increased by 0.5 percentage points to 12.8% [8][15]. - The company’s gross margin for brand down jackets was 61.1%, with slight declines in OEM processing and women's wear margins [15][27]. Inventory and Cash Flow - Inventory increased by 53.4% year-on-year, with inventory turnover days rising by 29 days to 189 days, primarily due to rising down prices and proactive inventory management [23][26]. - The company maintains a strong cash flow position and plans to distribute an interim dividend of 0.06 HKD per share [2][8]. Growth Drivers - New product categories, such as sun protection clothing and functional jackets, are contributing to revenue growth, with online sales for brand down jackets increasing by 24% [26][32]. - The company is optimizing its offline channel quality, closing 29 stores to focus on enhancing the performance of top stores, resulting in significant revenue growth per store [26][32]. Future Outlook - The company forecasts net profits of 3.6 billion, 4.1 billion, and 4.6 billion yuan for FY2025, FY2026, and FY2027, respectively, reflecting growth rates of 17.1%, 13.5%, and 11.6% [33][32]. - The target price is maintained at 5.1 to 5.5 HKD, corresponding to a PE ratio of 15-16x for FY2025, indicating a favorable investment opportunity in the undervalued, high-growth, and high-dividend yielding sector of down jackets [32][33].