Group 1: Market Overview - The overall sentiment in the Hong Kong stock market improved, with all three major indices closing higher. The Hang Seng Index rose by 0.42%, the Hang Seng China Enterprises Index increased by 0.2%, and the Hang Seng Tech Index gained 0.48% [2] - The total market turnover was approximately HKD 193.4 billion, with short selling on the main board amounting to about HKD 33.2 billion, representing an increase to approximately 21.93% of the total turnover of shortable stocks [2] - Southbound capital flow remained weak, with a net outflow of approximately HKD 1 billion from northbound trading [2] Group 2: Sector Performance - The property sector performed well, with Vanke Enterprises (2202.HK) reportedly meeting with onshore bondholders to propose three plans to avoid debt default, leading to a surge of over 13% in its stock price [2] - Other property stocks such as Sunac China (1918.HK) and China Jinmao (817.HK) also recorded significant gains, driven by increased investor confidence in fiscal policy support for stabilizing the housing market [2] - The consumer sector showed active performance, with stocks in home appliances, holiday concepts, and sports goods rising, indicating ongoing investor interest in domestic demand recovery [2] Group 3: Company Analysis - Bosideng (3998.HK) - Bosideng's revenue for the first half of the fiscal year ending September 30, 2025, was HKD 8.928 billion, a year-on-year increase of 1.4%, while net profit attributable to shareholders was HKD 1.189 billion, up 5.3% year-on-year, with a gross margin increase of 0.1 percentage points to 50.0% [6] - The brand's down jacket business saw revenue growth of 8.3% to HKD 6.568 billion, although gross margin declined by 2.0 percentage points to 59.1% due to faster growth in distribution channels compared to self-operated channels [7] - The women's wear segment experienced a decline in revenue by 18.6% to HKD 251 million, with a gross margin decrease of 1.9 percentage points to 59.9% due to a persistently sluggish market environment [8] Group 4: Investment Outlook - The company continues to focus on its main business and brand, with expectations for strong performance in the upcoming peak season. The forecasted EPS for the fiscal years 2026-2028 is HKD 0.35, 0.38, and 0.43 respectively, with a target price of HKD 6.0, maintaining a "Buy" rating [8]

Core Viewpoint - Bosideng reported a 1.4% year-on-year increase in revenue and a 5.3% increase in net profit for the first half of FY26, with a declared interim dividend of 6.3 HK cents per share, indicating healthy growth despite a challenging market environment [1] Financial Performance - For the first half of FY26, Bosideng's revenue reached 8.928 billion yuan, up 1.4% year-on-year, while net profit attributable to shareholders was 1.189 billion yuan, up 5.3% year-on-year, with a gross margin increase of 0.1 percentage points to 50.0% [1] - The brand's down jacket business saw revenue grow by 8.3% to 6.568 billion yuan, although gross margin declined by 2.0 percentage points to 59.1% [2] Brand Performance - The main brand recorded revenue of 5.719 billion yuan, an increase of 8.3% year-on-year, with new product lines introduced to enhance consumer choice, but the gross margin fell by 1.5 percentage points to 64.8% due to faster growth in distribution channels compared to self-operated channels [2] - The Snow Flying brand focused on high cost-performance strategies, with revenue declining by 3.2% to 378 million yuan and a gross margin decrease of 2.2 percentage points to 47.9% [2] - The Ice Cleansing brand underwent brand repositioning and inventory clearance, resulting in a revenue drop of 26% to 15 million yuan and a significant gross margin decline of 82.5 percentage points to -63.4% [2] OEM Business - The OEM business faced challenges from tariff policies, geopolitical issues, and weak overseas consumer demand, leading to an 11.7% revenue decline to 2.044 billion yuan, but gross margin improved by 0.4 percentage points to 20.5% due to enhanced supply chain management [2] Women's Wear Business - The women's wear segment experienced a decline in revenue by 18.6% to 251 million yuan, with a gross margin decrease of 1.9 percentage points to 59.9% due to a persistently weak market environment [3] Diversification Efforts - Revenue from diversified businesses fell by 45.3% to 64 million yuan, while gross margin improved by 0.2 percentage points to 27.8%, primarily due to a decrease in school uniform revenue by 49.3% [3] Channel Optimization - The company is focusing on optimizing channel quality and enhancing single-store operations, with a net increase of 88 stores in the down jacket business, bringing the total to 3,558 stores [3] Investment Outlook - The company is expected to perform well in the upcoming peak season, with projected EPS for FY26-28 at 0.35, 0.38, and 0.43 yuan respectively, and a target price of 6.0 HK dollars, maintaining a "buy" rating [3]

Investment Rating - The report maintains a "Buy" rating for Bosideng with a target price of HKD 6.0 [1][4]. Core Insights - Bosideng's revenue for the first half of FY26 increased by 1.4% year-on-year to RMB 89.28 billion, while net profit rose by 5.3% to RMB 11.89 billion, indicating healthy growth [2][4]. - The brand's down jacket business saw an 8.3% increase in revenue to RMB 65.68 billion, although the gross margin declined by 2.0 percentage points to 59.1% [2][4]. - The OEM business faced challenges, with revenue decreasing by 11.7% to RMB 20.44 billion, but gross margin improved by 0.4 percentage points to 20.5% due to better supply chain management [3][4]. - The women's clothing segment experienced an 18.6% decline in revenue to RMB 2.51 billion, reflecting a tough market environment [3][4]. - The company is focusing on optimizing channel quality and enhancing store operations, with a net increase of 88 down jacket stores to 3,558 [3][4]. Financial Summary - For FY26, the projected earnings per share (EPS) are expected to be RMB 0.35, with a growth forecast of 10.1% for revenue and 11.3% for net profit [4][5]. - The gross margin is expected to stabilize around 57.3% for FY26, with a net profit margin of 13.7% [5][14]. - The company anticipates a steady increase in revenue from RMB 28.51 billion in FY26 to RMB 34.70 billion by FY28, with corresponding net profits rising from RMB 3.91 billion to RMB 4.86 billion [5][14].

Core Viewpoint - Bosideng (03998.HK), a leading down jacket brand in China, reported a modest mid-term performance for the first half of the 2025/26 fiscal year, with revenue of approximately 8.93 billion yuan, a year-on-year increase of 1.4%, and a net profit of about 1.20 billion yuan, up 5.2% [2]. Revenue Performance - The brand's down jacket business generated approximately 6.57 billion yuan, accounting for 73.6% of total revenue, with a year-on-year growth of 8.3%. However, this growth rate has slowed compared to the previous two fiscal years, which saw growth rates of 28.1% and 22.7% respectively [3][5]. - The main brand, Bosideng, contributed 5.72 billion yuan in revenue, also achieving an 8.3% growth rate, significantly lower than the previous years' growth rates of 25.5% and 19.4% [5]. Market Challenges - The slowdown in growth is attributed to intensified competition in the high-end down jacket market, with brands like Arc'teryx, KAILAS, Descente, The North Face, and others attracting high-net-worth consumers [5]. - Rising raw material costs have also pressured Bosideng's cost structure, with the price of duck down increasing from 304 yuan/kg in 2020 to 669 yuan/kg in 2025 [5]. Strategic Initiatives - Despite market challenges, Bosideng is committed to maintaining its high-end positioning, launching the "Master Puff" series during Paris Fashion Week and collaborating with renowned designers to introduce premium product lines [6][8]. - The company has strategically invested in the Canadian luxury down jacket brand Moose Knuckles, acquiring approximately 31.6% of its shares to strengthen its high-end market presence [7]. Brand Development - The management indicated that the AREAL series has performed better than expected, with around 60% of sales revenue coming from new customers, primarily younger consumers [8]. - Bosideng aims to deepen its focus on down jackets while exploring new categories, ensuring that all new product developments align with its core business strategy [9][14]. Snow Flying Brand Performance - The Snow Flying brand, positioned in the mid-range market, experienced a revenue decline of 3.2% to 378 million yuan, despite increasing its retail outlets [10][13]. - The management expressed optimism about Snow Flying's recovery, noting a shift from negative to positive growth in sales during October and November [13].

Core Insights - Bosideng reported a mid-term performance for the fiscal year 2025/26, achieving revenue of approximately RMB 89.28 billion, a year-on-year increase of 1.4%, and a net profit of about RMB 12.01 billion, up 5.2%, marking a historical high for the same period [1] Business Performance - The core business of Bosideng showed strong performance, with revenue from branded down jackets increasing by 8.3% to approximately RMB 65.68 billion, driven by a 6.6% increase in self-operated channel revenue to RMB 24.11 billion and a 7.9% increase in wholesale channel revenue to RMB 37.01 billion [1] - The company is positioned as a "global leader in down jackets," focusing on product innovation to enhance brand value and internationalization [1] Product Innovation and Collaborations - Bosideng collaborated with top luxury brand creative director Kim Jones to launch the high-end product line Bosideng AREAL, integrating high fashion aesthetics with 49 years of expertise in down jacket craftsmanship [2] - The company also partnered with "functional fashion guru" Errolson Hugh to introduce the VERTEX three-in-one down jacket series, aiming to provide an all-scenario wearing experience [2] Market Strategy - Bosideng focuses on the main track of fashionable functional technology apparel, continuously optimizing and expanding product lines such as sun-protective clothing and down jackets, appealing to the outdoor and sports lifestyle of younger consumers [2] - The brand's consumer structure is becoming younger, with a significant increase in consumers under 30 on major e-commerce platforms like Tmall and JD, indicating enhanced brand value [2] Channel Strategy - The company emphasizes core categories and quality reputation as key assets, expanding market presence through product iteration and innovation while avoiding blind expansion [3] - Bosideng adapts its channel strategy to align with evolving consumer demands, enhancing operational efficiency through the expansion of flagship stores and distinctive brand stores [3] Online Sales Growth - In the first half of the fiscal year 2025/26, Bosideng's online sales revenue reached RMB 14.26 billion, a year-on-year increase of 2.2%, with a total of approximately 21.4 million members on Tmall and JD platforms [4] - The brand also gained over 1 million followers on Douyin, totaling approximately 11 million followers on the platform by September 30, 2025 [4] Inventory Management - The company improved its gross profit margin by 1.7% to approximately RMB 44.67 billion, supported by an efficient inventory management system that reduced inventory turnover days to 178 days, down 11 days year-on-year [4] - This reduction in inventory turnover days reflects Bosideng's effective product management capabilities and operational resilience in responding to market changes [4]

Core Insights - The core message emphasizes that successful companies are those that grow and adapt to changing times, as articulated by the chairman of Bosideng, Gao Dekang [1] - Bosideng aims to become a world-leading fashion functional technology apparel group, focusing on down jackets and fashionable functional clothing [1] Financial Performance - For the first half of the 2025/26 fiscal year, Bosideng reported revenue of approximately 8.928 billion RMB, a year-on-year increase of 1.4% [1] - The profit attributable to equity shareholders rose by 5.2% to about 1.189 billion RMB, marking the highest mid-term performance in eight consecutive years [2][7] Dividend and Stock Performance - Based on strong operational performance, Bosideng declared an interim dividend of 0.063 HKD per share [2] - The company's stock price reached a year-high of 5.37 HKD, with a maximum increase of 46.7% within the year [2] Strategic Focus and Business Growth - Since 2018, Bosideng has focused on its core down jacket business, enhancing brand building, product innovation, and retail upgrades, which has strengthened its resilience against market fluctuations [4] - The brand's down jacket segment generated approximately 6.568 billion RMB in revenue, accounting for 73.6% of total revenue, with an 8.3% year-on-year growth [4] Profitability and Cost Management - The company's profit attributable to equity shareholders grew by 5.3% to 1.189 billion RMB, indicating a high-quality growth trend with revenue growth outpacing profit growth [7] - Gross margin increased by 0.1 percentage points to 50%, driven by supply chain efficiency and cost structure optimization [7] Inventory and Supply Chain Management - As of September 30, 2025, the inventory turnover days decreased significantly by 11 days to 178 days, reflecting effective inventory management strategies [7] Brand Development and Innovation - Bosideng has made significant strides in brand high-end positioning and product innovation, launching a high-end product line in collaboration with Kim Jones and showcasing at Paris Fashion Week [9][10] - The company filed 398 patent applications and achieved a total of 1,520 patents, enhancing its digital R&D capabilities [10] Market Opportunities and Sales Channels - The upcoming winter season and favorable climatic conditions are expected to boost sales, with the 2026 Spring Festival occurring later, extending the winter apparel sales period [11] - Bosideng is actively expanding its online presence, with significant growth in followers on platforms like Douyin and Tmall, contributing to a 2.2% year-on-year increase in online sales [11][12] Retail Network Expansion - The company increased its retail network by 88 stores to a total of 3,558, enhancing its market coverage in both first-tier and lower-tier cities [12] Analyst Outlook - Analysts maintain a positive outlook on Bosideng's growth potential, with several brokerages issuing "buy" ratings based on the company's solid fundamentals and growth prospects [12][13]

Core Viewpoint - The company reported a solid performance for the fiscal year 2024/25, with revenue increasing by 11.6% to 25.9 billion and net profit rising by 14.3% to 3.51 billion, aligning with expectations [1] Revenue Breakdown - Brand down jackets revenue grew by 11% to 21.67 billion, with Bosideng, Xuezhongfei, and Bingjie contributing 10.1%, 9.2%, and -12.9% growth respectively, reaching 18.48 billion, 2.21 billion, and 0.13 billion [1] - OEM management business revenue increased by 26.4% to 3.37 billion, while women's and diversified clothing revenues decreased by 20.6% and increased by 2.8% to 0.65 billion and 0.21 billion respectively [1] Channel Performance - Brand down jacket sales through self-operated and wholesale channels grew by 5.2% and 24.3% to 15.09 billion and 5.72 billion respectively [1] - The number of retail stores increased by 253 to 3,470, with self-operated and wholesale stores net increasing by 100 and 153 to 1,236 and 2,234 respectively [1] Operational Efficiency - The company enhanced operational efficiency through the expansion of the Top Store system and upgrading channel stratification [2] - Online sales for brand down jackets rose by 9.4% to 7.48 billion, accounting for 34.5% of total sales [2] Profitability Metrics - Gross margin decreased by 2.3 percentage points to 57.3%, with brand down jackets' gross margin declining by 1.6 percentage points to 63.4% due to lower-margin franchise channels and rising raw material costs [2] - Net profit margin improved by 0.3 percentage points to 13.6% due to a decrease in distribution and administrative expense ratios [2] Financial Health - Inventory increased by 23.6% to 3.95 billion, with inventory turnover days rising by 3 days to 118 days [2] - The company maintained a healthy cash position with cash and cash equivalents of 4.18 billion and a dividend payout ratio of 84.1% [2] Future Outlook - The company is expected to achieve revenue growth of 10.06%, 10.37%, and 10.51% for FY2026 to FY2028, reaching 28.506 billion, 31.461 billion, and 34.766 billion respectively [3] - Net profit is projected to grow by 11.48%, 11.77%, and 11.59% to 3.917 billion, 4.378 billion, and 4.886 billion respectively, with corresponding valuations of 12, 11, and 10 times [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) with an expected relative performance increase of over 15% in the next 6 to 12 months compared to the benchmark index [9]. Core Views - The company demonstrated resilience amid external disturbances, presenting opportunities for seasonal layout [3]. - The brand's down jackets showed strong performance, with stable profit levels [3]. - The expansion of product categories is leading growth, and the long-term development of the company is viewed positively [3]. Financial Performance Summary - For the fiscal year 2024/25, the company achieved a revenue of 25,902 million yuan, representing a year-on-year growth of 11.6% [4]. - The net profit attributable to shareholders was 3,514 million yuan, with a year-on-year increase of 14.3% [4]. - The overall gross margin was 57.3%, a decrease of 2.3 percentage points year-on-year, while the net profit margin reached 13.6%, an increase of 0.4 percentage points year-on-year [4]. Revenue Breakdown - The main brand's down jacket business generated revenue of 21,668 million yuan, growing by 11.0% and accounting for 83.7% of total revenue [5]. - The brand "Bosideng" saw revenue increase by 10.1% to 18,481 million yuan, with a gross margin of 69.0% [5]. - The "Xuezhongfei" brand achieved revenue of 2,206 million yuan, up 9.2%, while the "Bingjie" brand's revenue decreased by 12.9% to 127 million yuan [5]. Channel and Operational Efficiency - The company is optimizing its channel structure with a net increase of 253 retail outlets, totaling 3,470, including 1,236 self-operated and 2,234 franchised stores [5]. - Online sales reached 7,575 million yuan, growing by 9.3%, with the online revenue of the down jacket business accounting for 34.5% of its segment revenue [5]. - The OEM business grew significantly, with revenue of 3,373 million yuan, up 26.4%, while the women's wear segment faced challenges with a revenue decline of 20.6% [5]. Profitability and Cash Flow - The overall gross margin decreased to 57.3%, primarily due to the faster growth of lower-margin OEM business compared to the brand business [5]. - The net profit margin improved to 13.6%, supported by a decrease in the sales expense ratio by 1.8 percentage points to 32.9% [5]. - The company maintained healthy inventory turnover with a total inventory of 3,951 million yuan and a turnover period of 118 days [5]. Future Earnings Forecast - The company forecasts net profits of 3,911 million yuan for FY2026, 4,345 million yuan for FY2027, and 4,784 million yuan for FY2028, with growth rates of 11%, 11%, and 10% respectively [6].