Core Viewpoint - The company reported a 12% year-on-year revenue growth to 25.9 billion yuan and a 14% increase in net profit to 3.5 billion yuan for FY25, meeting expectations [1] Revenue and Profit Performance - The company declared a final dividend of 0.22 HKD per share, resulting in an annual payout ratio of approximately 84% [1] - The main down jacket business maintained a steady growth rate of 7% in revenue during the second half of FY25 despite adverse factors such as high base, warm winter, and fluctuating consumer environment [1] - The core brand Bosideng generated a revenue increase of 7% to 13.2 billion yuan, accounting for 85% of the down jacket revenue [1] Business Segments and Growth - The OEM business saw a significant revenue increase of 26.4% to 3.37 billion yuan, reflecting the company's efforts to expand high-quality new clients and enhance overseas production capacity [1] - The company opened 253 new stores throughout the fiscal year, with approximately 31% of stores located in first- and second-tier cities, an increase of 2.8 percentage points year-on-year [1] Margin and Cost Management - The overall gross margin decreased by 3.0 percentage points to 61% in the second half of FY25, with the brand down jacket business gross margin declining by 1.9 percentage points to 64.3% due to a higher proportion of lower-margin wholesale channels and rising raw material costs [2] - The main brand Bosideng's gross margin only decreased by 1.0 percentage point to 70%, indicating strong discount control capabilities [2] - Selling and administrative expense ratio decreased by 2.4 percentage points to 42% due to operational efficiency improvements [2] Inventory Management - The company maintained healthy inventory turnover, with inventory turnover days increasing by 3 days to 118 days by the end of FY25 [2] Strategic Direction - The company plans to focus on its core down jacket business and fashionable functional apparel, emphasizing brand leadership and innovative multi-category product development [2] Earnings Forecast and Valuation - The company maintains its FY26 EPS forecast at 0.34 yuan and introduces an FY27 EPS forecast of 0.38 yuan, with the current stock price corresponding to 12/11 times FY26/27 earnings [3] - The target price remains unchanged at 5.63 HKD, implying a 22% upside potential from the current stock price [3]

Core Insights - Bosideng achieved continuous growth in revenue and net profit for eight consecutive years, with revenue reaching approximately 25.902 billion yuan, an increase of 11.6% year-on-year, and net profit around 3.514 billion yuan, up 14.3% year-on-year, driven by its "dual focus" strategy [1] Group 1: Business Performance - The "dual focus" strategy has led to significant business development, with revenue from down jackets increasing by 11.0% to approximately 21.668 billion yuan, marking a record high [1] - The OEM management business also performed well, generating revenue of 3.373 billion yuan, a year-on-year increase of 26.4% [1] - The subsidiary brand Xuezhongfei capitalized on the "ice and snow" theme, boosting online sales to approximately 2.206 billion yuan, a 9.2% increase year-on-year [1] Group 2: Channel Development - Bosideng actively optimized its operations and expanded its channels, focusing on TOP stores and tiered store management to enhance channel quality and operational efficiency [2] - The brand significantly promoted its lightweight down jackets on emerging platforms like Douyin, gaining over 1 million new followers by September 2024, totaling around 10 million followers by March 31, 2025 [2] - On Tmall and JD platforms, the brand added approximately 7 million new followers and 3 million new members, reaching a total of about 21 million members across these platforms [2] Group 3: Product Innovation - In response to changing market demands, Bosideng has innovated its product categories, launching functional outerwear such as sun-protective clothing and shell jackets, which contribute to sales during off-peak seasons [2] - The company has positioned sun-protective clothing as "more fashionable professional sun protection" and focused on practical solutions for temperature variations with its shell jackets [3] - Bosideng has introduced advanced features in its products, such as UV resistance and high elasticity in sun-protective clothing, and developed eco-friendly materials for shell jackets, enhancing their fashion appeal [3]