Core Viewpoint - The company's Q3 2025 performance fell short of expectations, with revenue and net profit growth impacted by trade friction, intensified competition, and increased promotional expenses [1][2]. Group 1: Financial Performance - For the first three quarters of 2025, the company reported a revenue increase of 29% year-on-year to 4.74 billion yuan, while net profit rose by 9.1% to 510 million yuan [1]. - In Q3 2025, revenue grew by 21.8% year-on-year to 1.52 billion yuan, but net profit decreased by 16.6% to 135 million yuan, which was below expectations [1]. - The company's gross margin improved by 0.9 percentage points year-on-year to 42.4% in Q3 2025, driven by the growth of high-end brands [2]. Group 2: Market Trends - The company's proprietary brands continued to experience significant growth, with online sales of the Fregat brand increasing by over 100% in Q3 2025, contributing to an overall brand growth estimate of around 40% [2]. - The high-end product strategy is enhancing gross margins, although net profit margins are pressured by trade friction, competition, and increased promotional expenses [2]. Group 3: Strategic Positioning - The company is positioned in a strategic opportunity period for market share growth, with its brand and product development capabilities significantly ahead of other domestic competitors [3]. - The company has been recognized as the "No. 1 Pet Food Brand in China" by Euromonitor, validating its high-end capabilities and growth potential for premium product lines [3]. Group 4: Profit Forecast and Valuation - The company has revised down its net profit forecasts for 2025 and 2026 by 6% and 5% respectively, now estimating net profits of 700 million and 850 million yuan [4]. - The current stock price corresponds to a P/E ratio of 49 and 40 for 2025 and 2026, respectively, with a target price of 118 yuan indicating a 38% upside potential based on a 55 P/E for 2026 [4].

Core Viewpoint - The appointment of Kim Jones as the creative director for Bosideng's high-end series is a significant move towards the company's strategy of high-end branding and internationalization, which has been positively received by the capital market, resulting in a stock price increase of nearly 9% [2][3][5]. Group 1: Strategic Moves - Kim Jones' joining is seen as a critical step in Bosideng's high-end strategy, showcasing the company's foresight in brand internationalization and product innovation [5]. - The global downtrend of high-end down jacket brands like Canada Goose presents an opportunity for Bosideng to capture a portion of the high-end market [5][19]. - Bosideng has previously collaborated with various international designers, but Kim Jones' role is more integrated, involving design, visual arts, and global marketing strategies [9][10]. Group 2: Market Context - The down jacket market is experiencing a shift, with traditional high-end brands facing growth challenges, allowing domestic brands like Bosideng to explore high-end opportunities [19]. - Bosideng's revenue reached 25.9 billion yuan in the 2024/25 fiscal year, marking a historical high for eight consecutive years, with a net profit increase of 14.3% to 3.51 billion yuan [19]. - The competitive landscape is complex, with Bosideng facing challenges from both high-end brands and cross-category competitors, which could impact its market positioning [20]. Group 3: Challenges Ahead - Despite the positive market reaction, Bosideng's high-end strategy faces challenges, including consumer perception issues and a heavy reliance on marketing expenditures, which have surged from 2.45 billion yuan to 8.055 billion yuan from 2018 to 2024, while revenue growth has been modest [19][20]. - The long-term realization of value from Kim Jones' appointment remains to be seen, as the brand must navigate a multifaceted competitive environment [20].

Core Insights - The appointment of Kim Jones as the creative director for Bosideng's high-end series is seen as a significant move towards the company's high-end strategy, resulting in a market response that added HKD 4.7 billion to shareholder value [2][4] - Bosideng's stock price surged nearly 9% to HKD 4.91, marking a recent high, indicating strong investor confidence in the brand's strategic direction [2][4] Market Reaction - Kim Jones' joining is perceived as a pivotal step in Bosideng's strategy for high-end market positioning and international brand recognition [4] - The global downtrend of high-end down jacket brands like Canada Goose presents an opportunity for Bosideng to capture market share [4][12] Industry Context - Kim Jones is a renowned designer with a successful track record at Louis Vuitton and Dior, known for his ability to blend high fashion with streetwear, which aligns with Bosideng's aspirations [6][8] - The fashion industry is witnessing a shift, with established high-end brands facing growth challenges, creating a potential opening for domestic brands like Bosideng [12][13] Financial Performance - Bosideng reported a revenue of CNY 25.9 billion for the fiscal year 2024/25, marking a historical high and a 14.3% increase in net profit to CNY 3.51 billion [12] - The company's marketing expenses have significantly increased, raising concerns about the sustainability of its growth strategy [12][13] Strategic Moves - Bosideng has previously collaborated with various international designers, but Kim Jones' role is more integrated, covering design, visual arts, and global marketing strategies [8] - The brand's high-end series "Dengfeng" was launched with prices exceeding CNY 10,000, although it faced criticism regarding its perceived value [9][11] Competitive Landscape - Bosideng faces multifaceted competition from both high-end brands like Moncler and Canada Goose, as well as cross-category competitors like Lululemon [13] - The brand's ability to establish a strong luxury perception and narrative will be crucial for its success in the high-end market [12][13]

Core Viewpoint - The appointment of Kim Jones as the creative director for Bosideng's high-end series is seen as a significant step in the company's strategy to upscale its brand and product offerings, leading to a notable market response with a stock price increase of nearly 9% [2][4][10]. Company Strategy - Bosideng aims to transition towards a high-end market, as evidenced by its previous initiatives, including a logo redesign and the launch of its first high-end series "Dengfeng" priced above 10,000 yuan [7][8]. - The company has previously collaborated with various international designers, but Kim Jones's role marks a deeper involvement in design, visual arts, and global marketing strategies [6][8]. Market Dynamics - The global down jacket market is experiencing shifts, with traditional high-end brands like Canada Goose facing growth challenges, creating opportunities for domestic brands like Bosideng to capture market share [4][10]. - The competitive landscape is becoming more complex, with Bosideng needing to address both high-end competitors and cross-category challengers [12]. Financial Performance - Bosideng reported a revenue of 25.9 billion yuan for the 2024/25 fiscal year, marking a historical high for eight consecutive years, with a net profit increase of 14.3% to 3.51 billion yuan [10]. - The company's sales and distribution expenses have surged from 2.45 billion yuan to 8.055 billion yuan from 2018 to 2024, indicating a high dependency on marketing for growth [12]. Industry Impact - Kim Jones's appointment is viewed as a pivotal moment for Bosideng, potentially enhancing its brand perception and market positioning in the high-end segment [4][11]. - The fashion industry is witnessing a trend towards rational consumer behavior, where both high-end appeal and cost-effectiveness are prioritized [10].

Group 1 - The core viewpoint of the report is that CICC maintains the EPS forecast for Bosideng at 0.34/0.38 HKD for FY26/27, with a target price increase of 4.6% to 5.89 HKD, indicating a 20% upside potential from the current stock price [1] - Recent research indicates that Bosideng's flagship store on Nanjing East Road in Shanghai has shown robust retail performance during the off-season, laying a solid foundation for the upcoming peak season [1] - Despite renovations at the main flagship store, Bosideng's sales in the Shanghai region remained strong in 1HFY26, supported by enhanced product and brand strength, as well as refined marketing management [1][2] Group 2 - CICC expects Bosideng's revenue to remain stable in 1HFY26, with healthy growth in the core down jacket business despite some fluctuations in OEM due to tariffs [2] - The company’s distribution channels have performed well under flexible policy guidance, contributing significantly to business growth in 1HFY26 [2] - Bosideng's collaboration with renowned designer Kim Jones to launch the new "AREAL Advanced Urban Line" demonstrates its commitment to upgrading its brand towards a high-end strategy [2]

Core Viewpoint - CICC maintains the EPS forecast for Bosideng at 0.34/0.38 HKD for FY26/27, with a target price increase of 4.6% to 5.89 HKD, indicating a 20% upside potential from the current stock price [1] Group 1: Company Performance - Recent research indicates that Bosideng's new flagship store on Nanjing East Road in Shanghai has shown robust retail performance during the off-season, laying a solid foundation for the upcoming peak season [2] - Despite renovations at the flagship store, Bosideng's sales in the Shanghai region remained strong in 1HFY26, supported by enhanced product and brand strength, as well as refined marketing management in high-end shopping areas [3] - The company has closely collaborated with distributors to improve operational quality, leading to excellent retail performance from distributors, particularly after a temperature drop in East China in mid-October [3] Group 2: Financial Outlook - CICC expects Bosideng's revenue to remain stable in 1HFY26, with healthy growth in the core down jacket business despite some fluctuations in OEM due to tariffs [4] - The company’s flexible policy guidance for distribution channels has driven significant business growth, while self-operated business performance remained stable due to strategic adjustments during the off-season [4] - A slight decrease in OEM proportion is anticipated to enhance the group's profit margin, maintaining a trend of profit growth alongside stable revenue [4] Group 3: Brand Strategy - Bosideng's collaboration with renowned designer Kim Jones to launch the new "AREAL Advanced Urban Line" demonstrates the company's commitment to upgrading its high-end brand strategy [5] - This initiative reflects the company's forward-looking approach in strategic high-end positioning, international brand development, and product innovation [5]

Core Viewpoint - The announcement of international superstar Jackson Wang as the global ambassador for Han Shu signifies a transformative leap for the brand, marking a shift towards internationalization and a redefined brand image beyond traditional "national goods" labels [2][9][21]. Brand Transformation - Han Shu has evolved from a price-driven brand to one focused on scientific anti-aging, enhancing its product development and research capabilities [2][6]. - The collaboration with Jackson Wang represents a strategic upgrade in brand positioning, aiming to shed the image of being merely a "national alternative" and instead showcase a modern brand with technological and cultural depth [8][20]. Globalization Strategy - The partnership with an internationally influential figure like Jackson Wang allows Han Shu to expand its narrative and product experiences beyond China, aiming to establish itself as a representative of Chinese scientific beauty on the global stage [9][22]. - This move is part of Han Shu's ambition to become a "Chinese scientific beauty exporter," indicating a commitment to high-end transformation and international market penetration [9][21]. Market Performance - Han Shu has demonstrated strong market performance, maintaining a leading position on platforms like Douyin for 25 consecutive months and achieving significant sales milestones [10][16]. - The brand's user demographics show a concentration of over 74.95% in the 18-35 age range, indicating a strong appeal to the primary consumer base in the beauty market [10]. Research and Development - Han Shu has a robust foundation in research, having focused on peptide technology since 2003, and recently appointed a leading international expert to enhance its scientific capabilities [11][14]. - The introduction of the X Peptide series, featuring self-developed ingredients, exemplifies Han Shu's commitment to high-quality, effective skincare products that can compete with international brands [17][19]. Future Aspirations - The collaboration with Jackson Wang is seen as a strategic step towards achieving the brand's vision of becoming a billion-dollar entity, focusing on expanding its market presence and enhancing its product offerings [21][22]. - Han Shu aims to leverage its existing market dominance to build a sustainable growth trajectory that emphasizes premium positioning and international competitiveness [21].

编者按：娱乐化，是品牌的"放大器";内容化，是品牌的"沉淀器";高端化，是品牌的"导航仪"。 作者|高端品牌实验室 研究员 段传敏 娱乐化破圈：科技卫浴品牌唱响敦煌 敦煌，这个曾经贫瘠荒漠、人迹罕至之地，千年来的沉淀让它成为中西历史文化胜地，更成为国人心中 的流行文化坐标。 当2025年的国庆节与中秋节相会于此，潮水般的游客从四面八方涌来，举目望去"西出阳关"全是人，鸣 沙山竟然"人比沙子多"。尤其是10月6日中秋之夜，一场名为"九牧全球音乐季"的活动在鸣沙山月牙泉 畔吸引了超五万人。 想想这一场景就是极致的中国浪漫：千里沙丘仰望万里星空，皎洁圆月独钟月牙泉畔，数万游客唱响西 北旷野，天籁风声音效伴奏…… 对于这场活动的总冠名九牧而言，这绝非一场普通的音乐节，而是关乎自身品牌建设的创新试验。在这 场被媒体称为"最具现象级、最具正能量、最具文化跨界影响力"的全球演唱盛会中，九牧巧妙地将其产 品、场景与娱乐内容深度融合：在知名歌手莫文蔚的歌声中，在无人机绘出的"九牧小牧"光影秀里，九 牧这家卫浴企业，完成了一次极具象征意义的品牌嬗变——它在"售卖科技"的同时也开始"制造流行"。 在这场现象级的盛会中，九牧将其产品 ...

Core Viewpoint - The recent investment by Lao Feng Xiang in Maybach Luxury Goods Asia Pacific is seen as a significant step towards high-end transformation in the gold and luxury goods sector, sparking discussions about the dilution of gold attributes and the potential for mutual benefits in market expansion [1][2][6]. Company Summary - Lao Feng Xiang plans to invest $24 million (approximately 170 million RMB) to acquire a 20% stake in Maybach Luxury Goods Asia Pacific, along with securing distribution rights in the Asia Pacific region [1][3]. - The partnership aims to enhance Lao Feng Xiang's brand image and product offerings while expanding into international markets [3][5]. - The investment is structured as a dual approach, combining equity investment with brand agency agreements to facilitate a stable relationship and operational learning from the luxury sector [4][5]. Industry Summary - The gold jewelry industry is currently facing profitability challenges due to high gold prices and increasing product homogeneity, leading to declining consumer demand [6][7]. - Lao Feng Xiang's revenue fell by 16.52% to 33.356 billion RMB, with net profit down 13.07% to 1.22 billion RMB in the first half of 2025, reflecting broader industry trends [7]. - In contrast, competitors like Lao Pu Gold have seen significant growth, with a 251% increase in revenue, indicating a potential shift towards high-end strategies within the industry [7][8]. - The luxury goods market is expected to see over 50% of luxury brands introducing pure gold jewelry, indicating a growing intersection between gold and luxury sectors [10].

Core Insights - BYD's passenger car sales are projected to exceed 4.25 million units in 2024, with models priced below 200,000 yuan accounting for 84.3% of total sales, indicating that affordable models remain the core support for BYD's scale [1] - The launch of the Tengshi D9 in 2022 marked the beginning of BYD's high-end strategy, followed by the introduction of the Yangwang and Fangchengbao brands, establishing a clear brand hierarchy [1] - In the first half of 2025, total sales of high-end brand series reached 142,000 units, reflecting a robust year-on-year growth of 69.9% [1] Industry Dynamics - Traditional luxury brands like BBA (Benz, BMW, Audi) have established their high-end image through a combination of historical legacy, technological prowess, and brand management, focusing on long-term brand value rather than short-term sales [1] - The success of Li Auto in the high-end market is attributed to its precise product definition targeting family usage scenarios, offering differentiated configurations that lead to a competitive product advantage [2] - The high-end image of the AITO brand is driven by IP empowerment and advanced driving technology, leveraging Huawei's global influence in communication and technology [2] Strategic Developments - BYD's high-end strategy is built on a foundation of technology, brand differentiation, and global expansion, utilizing a three-tier brand matrix for precise market coverage [2] - The Tengshi brand leverages disruptive technologies to create a full product matrix across sedans, SUVs, and MPVs, while Fangchengbao targets the personalized market with advanced technology [2] - BYD plans to invest 5 billion yuan to build the world's first all-terrain professional racetrack, aiming to foster automotive culture in the new energy era [2] Investment Outlook - BYD is refining its high-end strategy through trial and error, returning to a larger vehicle strategy, with expectations that technological advancements will drive sales growth [3] - The "全民智驾" (Universal Intelligent Driving) strategy is anticipated to accelerate brand high-endization, potentially expanding revenue and profit margins, with sustained improvement in mid-to-long-term profitability [3]