EBSCN·2025-06-30 09:43Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a robust and high-quality growth in a weak demand environment, continuing to advance its dual-focus strategy [10] - For the fiscal year 2024/25, the company reported a revenue of 25.9 billion RMB, a year-on-year increase of 11.6%, and a net profit attributable to shareholders of 3.51 billion RMB, up 14.3% year-on-year [5] - The company’s gross margin decreased by 2.3 percentage points to 57.3%, while the operating margin increased by 0.2 percentage points to 19.2% [5][8] Financial Performance - The company’s main business segments showed varied performance: brand down jackets increased by 11%, OEM processing by 26%, women's wear decreased by 21%, and diversified clothing increased by 3% [6] - Online sales for the entire brand reached 7.58 billion RMB, a year-on-year growth of 9.3%, with the brand down jackets accounting for 34.5% of the revenue [6] - As of March 2025, the company had 3,470 down jacket stores, a net increase of 253 stores, reflecting a 7.9% growth [7] Profitability and Cost Management - The company’s operating expenses ratio decreased by 2.0 percentage points to 38.5%, indicating effective cost control [8] - The inventory increased by 23.6% to 3.95 billion RMB, with inventory turnover days slightly increasing to 118 days [9] Strategic Focus - The company is committed to a dual-focus strategy centered on down jackets and fashionable functional apparel, aiming for steady growth despite external challenges [10] - The report anticipates continued revenue growth exceeding 10% for the main business segments, showcasing the resilience of the brand and operations [10] Earnings Forecast - The report projects revenue growth rates of 10.1% for FY2026 and 10.0% for FY2027, with net profit growth rates of 11.5% and 11.4% respectively [11] - The estimated earnings per share (EPS) for FY2026 is projected at 0.34 RMB, with a price-to-earnings (P/E) ratio of 12 [11]