EBSCN·2024-04-21 03:32Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company achieved a revenue of 7.472 billion RMB and a net profit of 919 million RMB for the first half of the fiscal year 2024, representing year-on-year growth of 20.9% and 25.1% respectively [1]. - The main brand, Bosideng, saw a 28.1% increase in down jacket sales, with revenue growth of 25.5% and 52.2% for Bosideng and Snow Flying brands respectively [1]. - Online sales data for the main brand showed significant growth, with a 17% and 37% year-on-year increase on Tmall for Q4 2023 and Q1 2024 respectively, and Snow Flying achieving 30% and 108% growth on Douyin [1]. - The company is focused on enhancing its product mix and functionality, launching innovative products such as lightweight down jackets and multifunctional jackets, and leading the market with high UPF ratings for sun protection clothing [1]. - The report anticipates continued improvement in the company's multi-category and seasonal layout, leading to an upward revision of profit forecasts for fiscal years 2024 to 2026 [1]. Summary by Sections Financial Performance - For the fiscal year 2024, the company is projected to achieve a revenue of 21.779 billion RMB, with a growth rate of 29.83% [2]. - The net profit is expected to reach 2.888 billion RMB, reflecting a growth rate of 35.04% [2]. - Earnings per share (EPS) for fiscal years 2024, 2025, and 2026 are forecasted to be 0.26, 0.31, and 0.36 RMB respectively [2]. Market Data - The total market capitalization of the company is approximately 47.179 billion HKD [4]. - The stock has traded between 2.83 and 4.37 HKD over the past year [4]. - The turnover rate over the last three months is reported at 19.7% [4]. Profitability Metrics - The company’s gross margin is projected to be around 59.5% for fiscal year 2024, with a net profit margin of 13.3% [7]. - Return on equity (ROE) is expected to increase to 22.0% in fiscal year 2024, reaching 27.2% by fiscal year 2026 [7].