BOSIDENG(03998) 国盛证券·2024-06-13 08:02Investment Rating - The report maintains a "Buy" rating for Bosideng (03998 HK) with a FY2025 PE of 14x [2] Core Views - Bosideng is expected to achieve a 30% revenue growth in FY2024, driven by strong sales in its down jacket business and steady growth in OEM operations [1] - The company is expanding its product portfolio into functional apparel, including lightweight down jackets and sun protection clothing, which is expected to contribute to future growth [2] - Bosideng's online sales account for over 30% of total revenue, with significant improvements in profitability and efficiency [2] Product Expansion - Bosideng has successfully upgraded its main brand, with the gross margin of the Bosideng brand reaching 70 8% in FY2023 [2] - The company has introduced lightweight down jackets and sun protection clothing, with the lightweight down category accounting for approximately 20% of down jacket sales in FY2023 [2] - The sun protection category achieved sales of over 100 million yuan in 2023 and is expected to continue growing in 2024 [2] Channel Efficiency - Bosideng has optimized its offline channels by focusing on single store management, with 3,183 stores as of FY2023 [2] - The company's online sales have grown rapidly, with a CAGR of 34% over the past five years, accounting for 35 6% of total down jacket sales in FY2023 [37] - Bosideng has a comprehensive presence across major e-commerce platforms, including Tmall, JD com, and Douyin [38] Supply Chain Improvement - Bosideng has maintained a low initial order ratio, with less than 40% of orders placed at the beginning of the year, allowing for flexible replenishment based on sales performance [2] - The company's inventory turnover days decreased to 142 days in FY2023, down by 6 days year over year, and further improved to 158 days in FY2024H1, down by 20 days year over year [2] - Bosideng has upgraded its supply chain to support rapid replenishment and efficient logistics, with a target of 99% availability for top selling items [42] Financial Performance - Bosideng's revenue is expected to grow to 21 61 billion yuan in FY2024, representing a 28 8% year over year increase [45] - The company's net profit is forecasted to reach 2 87 billion yuan in FY2024, a 34 2% year over year increase, with continued growth expected in FY2025 and FY2026 [46] - Bosideng has maintained a high dividend payout ratio, with an average of around 80% from FY2019 to FY2023 [1] Valuation and Investment Outlook - Bosideng's valuation is relatively low compared to peers, with a FY2025 PE of 13 9x, below the industry average of 15 8x [50] - The company's expansion into new product categories and improved operational efficiency are expected to drive stable growth and enhance its valuation [49] - Bosideng's strong brand positioning and high dividend payout make it an attractive investment opportunity [51]