Investment Rating - The report maintains a "Buy-A" rating for Bosideng (03998.HK) [1] Core Views - Bosideng demonstrates resilient operations with high-quality growth in its brand down jacket business, achieving a revenue of 25.902 billion yuan, a year-on-year increase of 11.6%, and a net profit of 3.514 billion yuan, up 14.3% [2][4][8] Financial Performance - For the fiscal year 2024/25, Bosideng's revenue reached 25.902 billion yuan, with the brand down jacket segment contributing 21.668 billion yuan, reflecting an 11.0% growth. The main brand, Bosideng, generated 18.481 billion yuan, up 10.1% [4][8] - The company declared a final dividend of 0.22 HKD per share, with an annual payout ratio of 84.1% [2] Business Segments - The brand down jacket business saw a net increase of 253 stores, totaling 3,470 stores by the end of the reporting period. Self-operated channels generated 15.090 billion yuan, a 5.2% increase, while wholesale channels grew by 24.3% to 5.724 billion yuan [5][6] - The OEM business achieved a revenue of 3.373 billion yuan, marking a 26.4% increase, while women's wear revenue declined by 20.6% to 0.651 billion yuan [4][5] Profitability and Margins - The overall gross margin for the fiscal year 2024/25 was 57.3%, down 2.3 percentage points year-on-year. The brand down jacket segment's gross margin decreased to 63.4% [6][7] - Operating profit margin improved by 0.3 percentage points to 19.2%, and net profit margin increased by 0.4 percentage points to 13.6% [7] Future Outlook - The report forecasts earnings per share (EPS) for fiscal years 2026-2028 to be 0.34, 0.38, and 0.41 yuan, respectively, with price-to-earnings (P/E) ratios of 11.9, 10.8, and 9.9 times [8][10]

Core Insights - Bosideng International Holdings Limited reported a revenue of 25.902 billion yuan for the fiscal year ending March 31, 2025, representing a year-on-year growth of 11.58% [2] - The net profit attributable to equity shareholders was 3.514 billion yuan, an increase of 14.31% year-on-year, with a proposed final dividend of 0.22 HKD per share [2] - Despite challenges such as a warm winter and a tough consumer environment, Bosideng achieved record highs in revenue and net profit for eight consecutive years, with operating profit growth outpacing revenue growth [2] Business Segments - The brand down jacket business remains the largest revenue source, generating approximately 21.668 billion yuan, accounting for 83.7% of total revenue, with a year-on-year growth of 11.0% [2] - The OEM management business recorded revenue of about 3.373 billion yuan, representing 13.0% of total revenue, with a year-on-year increase of 26.4% [2] - Women's clothing revenue was approximately 651 million yuan, accounting for 2.5% of total revenue, showing a decline of 20.6% year-on-year [2] - Diversified clothing business generated about 209 million yuan, making up 0.8% of total revenue, with a year-on-year increase of 2.8% [2] Strategic Focus - Bosideng is focusing on a "dual focus" strategy on down jackets and fashionable functional apparel, aiming to enhance its product offerings, including lightweight down jackets and extreme cold series [3] - The brand is also working on building the "China Good Down" IP and launching city brand collaborations [3] - The "Xuezhongfei" brand is enhancing its online business and focusing on category value innovation and core resource integration [3] Operational Efficiency - The company employs a pull replenishment and small batch quick response mechanism, achieving efficient inventory turnover with an inventory turnover period of 118 days, slightly up by 3 days year-on-year [3][6] - The gross profit margin decreased by 2.3 percentage points to 57.3%, attributed to changes in product category structure and rising costs of down jackets [6] Market Challenges - The overall performance of the textile and apparel industry is experiencing a slowdown in growth rates due to low consumer confidence and market saturation, leading to increased marketing costs and inventory pressures [6] - Bosideng faces challenges in high-end transformation, internationalization, and operational efficiency, with a need to target younger consumer segments and enhance brand positioning [6]

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]

Group 1 - The company reported a revenue increase of 11.6% year-on-year, reaching approximately RMB 25.902 billion for the fiscal year ending March 31, 2025 [1] - The profit attributable to equity shareholders rose by 14.3% year-on-year to approximately RMB 3.514 billion [1] - The board proposed a final dividend of HKD 0.22 per share [1] Group 2 - The company has focused on its core business of down jackets, emphasizing brand building, product innovation, retail upgrades, and digital management to achieve sustainable and high-quality growth [1] - The company aims to become a global leader in the down jacket industry by concentrating resources on enhancing core competitiveness [1] - The company has implemented four key strategies: strengthening brand leadership, category management, channel operations, and customer experience [1] Group 3 - The company is enhancing its brand image as a "global leading down jacket expert" and aims to upgrade its global recognition in the down jacket market [2] - Product development includes expanding into functional outerwear for spring and summer, such as sun-protective clothing and lightweight down jackets [2] - The company has received multiple industry recognitions, including being named one of the "Top 50 Brand Marketing Cases" and awarded "Most Influential Listed Company in Hong Kong" [2]