BOSIDENG(03998) 国证国际证券·2024-12-03 10:28Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.6 for the fiscal year 2024/25, based on a 16x PE ratio [1][4]. Core Insights - The company reported a revenue increase of 17.8% year-on-year for FY25H1, reaching RMB 8.804 billion, and a net profit increase of 23% to RMB 1.13 billion, outperforming expectations [2][3]. - The brand's down jacket business saw a revenue growth of 22.7% to RMB 6.06 billion, with a slight decline in gross margin [2]. - The main brand, Bosideng, achieved a revenue of RMB 5.28 billion, up 19.4%, driven by strong sales of new product categories [2][3]. - The OEM business grew by 13.4% to RMB 2.32 billion, while the women's wear segment faced a decline of 21.5% to RMB 308 million due to ongoing industry challenges [2][3]. - The company is focusing on channel optimization and operational efficiency, with a reduction in the number of down jacket stores but an increase in self-operated stores [2][3]. Financial Summary - For the fiscal years 2022/23 to 2026/27, the company is projected to see significant revenue growth, with expected revenues of RMB 26.648 billion in 2024/25, growing to RMB 33.492 billion by 2026/27 [3][8]. - The net profit is expected to rise from RMB 3.601 billion in 2024/25 to RMB 4.524 billion in 2026/27, reflecting a strong growth trajectory [3][8]. - The gross margin is projected to remain stable around 59% over the next few years, indicating consistent profitability [3][11].