GOLDEN SUN SECURITIES·2025-11-28 07:52Investment Rating - The report maintains a "Buy" rating for Bosideng (03998.HK) [6][3] Core Views - The company reported a steady mid-term performance with FY2026H1 revenue increasing by 1.4% year-on-year to 8.93 billion and net profit attributable to shareholders rising by 5.3% to 1.19 billion [1] - The main brand's down jacket business saw a revenue increase of 8% year-on-year, driven by the growth of the Bosideng main brand, while OEM business revenue decreased by 12% [1][2] - The report anticipates continued high-quality growth for FY2026, estimating a revenue increase of around 10% and net profit growth expected to outpace revenue growth [3] Financial Performance - For FY2026H1, the gross profit margin was 50.0%, with a net profit margin of 13.3%, reflecting a slight improvement in profitability [1] - The company declared an interim dividend of 0.063 HKD per share [1] - The report projects FY2026 revenue of approximately 28.48 billion and net profit of 3.90 billion, with corresponding P/E ratio of 14 times [3][5] Business Segments - The brand down jacket segment generated 6.57 billion in revenue for FY2026H1, while the OEM segment contributed 2.04 billion, accounting for 23% of total sales [2] - Women's clothing revenue decreased by 19% to 250 million, and diversified clothing revenue fell by 46% to 60 million [2] - The company has maintained healthy inventory levels, with inventory turnover days decreasing by 11 days to 178 days [2] Market Strategy - The company focuses on product and channel innovation, with successful brand upgrades and category expansions expected to drive long-term growth [3] - The report highlights the importance of e-commerce as a channel for brand building and member marketing, with online sales increasing by 2% to 1.38 billion in FY2026H1 [3][9] - The company has strategically increased the number of stores, with a total of 1,239 direct-operated stores and 2,319 franchised stores as of FY2026H1 [9]