Investment Rating - The report does not explicitly state an investment rating for the industry or companies discussed. Core Insights - Tambor submitted its listing application on October 8, aiming for an IPO on the Hong Kong Stock Exchange. It is a leading outdoor apparel brand in China, established in 2004, combining high performance with fashion. The company has shown rapid revenue growth, with a net profit of 3.594 million yuan in the first half of 2025, representing a year-on-year increase of 305.6% [1][11][12]. - Beautiful Garden announced a strategic acquisition of 100% of Siyanli for 1.25 billion yuan on October 15, 2025. This acquisition, along with a previous acquisition of Narier, positions Beautiful Garden as a leader in the beauty service industry, significantly enhancing its market presence and operational scale [2][19][21]. - The apparel retail sector showed signs of recovery in August, with a year-on-year growth of 3.1%, driven by seasonal promotions and increased consumer demand. The cosmetics retail sector also saw a year-on-year increase of 5.1% [3][28][35]. Summary by Sections 1. Outdoor Brand Tambor - Tambor's revenue has been steadily increasing, with figures of 732 million yuan in 2022, 1.021 billion yuan in 2023, and 1.302 billion yuan in 2024, alongside a 6.58 billion yuan revenue in the first half of 2025, marking an 85% year-on-year growth [12][14]. - The company has a strategic product matrix focusing on three main series: top outdoor series, sports outdoor series, and urban light series, with the urban light series accounting for 68.2% of revenue in the first half of 2025 [1][15][18]. - Tambor's online sales have surged, with online revenue accounting for 52.7% in the first half of 2025, up from 30.9% in 2022 [17][18]. 2. Beautiful Garden - The acquisition of Siyanli is expected to significantly increase Beautiful Garden's market share in the high-end beauty service sector, with a combined total of 191 stores across major cities, representing 42% of the market in high-end commercial areas [19][21][22]. - The company reported a 44% increase in active members following the acquisition, enhancing its customer base and market reach [21][22]. - Beautiful Garden's revenue for the first half of 2025 was 1.459 billion yuan, with a net profit of 156 million yuan, and the acquisition of Siyanli is projected to further boost these figures [26]. 3. Industry Data Tracking - The apparel retail sector's recovery is attributed to seasonal changes and increased consumer activity, while the cosmetics sector continues to show growth, indicating a positive trend in consumer spending [3][28][35]. - Raw material prices remained stable, with cotton prices showing slight fluctuations, which could impact production costs in the apparel sector [30][31].

Core Viewpoint - The outdoor lifestyle and winter sports are increasingly popular in China, leading to the expansion of the professional outdoor apparel market, which has prompted Tanboer Group Co., Ltd. to pursue an IPO in Hong Kong. The prospectus reveals significant growth in revenue and net profit, but also highlights various risk factors that warrant investor attention [1]. Business and Model - Tanboer is a leading professional outdoor apparel brand in China, with a product system divided into three main series: top outdoor, sports outdoor, and urban light outdoor, totaling 687 SKUs by June 30, 2025, covering various activities and urban scenarios [2]. - The company employs an omnichannel sales model, combining offline advantages with online operations. Online revenue is projected to grow significantly, with a 168.5% increase in the first half of 2025 compared to the same period in 2024 [2]. - Tanboer maintains long-term partnerships with leading raw material suppliers and qualified contract manufacturers to ensure product quality, supported by a regional warehousing network and smart logistics centers for efficient delivery [2]. Financial Data - Revenue has shown significant growth, with figures of 732 million, 1.021 billion, 1.302 billion, and 658 million yuan for the years 2022 to the first half of 2025, respectively. The online channel has become a key driver of this growth [3]. - Net profit figures for the same period are 86 million, 139 million, 107 million, and 36 million yuan, indicating fluctuations influenced by market conditions and cost control [4][3]. - Gross margins have remained high, with rates of 50.2%, 56.5%, 54.9%, and 54.2% from 2022 to the first half of 2025, affected by raw material and manufacturing costs [5]. - Net profit margins have shown volatility, with rates of 11.7%, 13.6%, 8.2%, and 5.5% over the same period, reflecting challenges in cost control and profitability [6]. Revenue Composition Changes - The urban light outdoor series has the highest revenue share but is declining from 82.7% in 2022 to 68.2% in the first half of 2025, while the top outdoor series is gradually increasing from 0.4% to 4.6% [7]. - Online revenue share has been increasing, rising from 30.9% in 2022 to 52.7% in the first half of 2025, while offline revenue share has decreased correspondingly [7]. Risk Factors - The professional outdoor apparel industry in China is highly competitive, with the top ten brands holding only 24.3% of the market share by 2024, posing a challenge for Tanboer against both domestic and international competitors [8]. - Rapid changes in consumer preferences regarding styles, functions, and materials may adversely affect the company's business if it fails to adjust its product mix in a timely manner [8]. - The strength and expansion of the "TANBOER" brand are crucial for success, as brand reputation can be damaged by product defects or consumer complaints, impacting sales and financial performance [9]. - Continuous R&D investment is essential for attracting and retaining consumers, but challenges in execution and design consistency may negatively impact operational performance [10]. - The company relies heavily on third-party e-commerce platforms for sales, and the expansion of offline stores may not yield expected profitability, posing operational risks [11].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the CSI 300 index in the next six months [34][17]. Core Views - The company achieved a revenue of 8.124 billion yuan in 2024, representing a year-on-year growth of 33.74%, while the net profit attributable to shareholders decreased by 19.21% to 334 million yuan due to high shipping costs and increased sales expenses [5][6]. - The company is focusing on product innovation and expanding its sales channels, particularly in emerging platforms like TEMU, TikTok, and SHEIN, which have shown significant growth [6][12]. - The logistics optimization strategy, including the establishment of additional warehouses in Europe and the U.S., has improved delivery efficiency and reduced costs [10][11]. Summary by Sections Financial Performance - In 2024, the company reported a net cash flow from operating activities of 2.294 billion yuan, a year-on-year increase of 53.02% [5]. - The gross profit margin for 2024 was 34.65%, a decrease of 1.67 percentage points compared to the previous year [15]. - For Q1 2025, the company achieved a revenue of 2.091 billion yuan, a year-on-year increase of 13.56%, with a net profit of 111 million yuan, up 10.30% [5][16]. Revenue Growth Drivers - The revenue growth was driven by strong performance in new and secondary products, which accounted for 37% of total revenue, with a year-on-year growth of 89% [6]. - The furniture and home goods categories saw significant growth, with revenues of 4.198 billion yuan and 2.953 billion yuan, respectively, both showing over 35% growth [7]. - The company has diversified its sales channels, with B2C and B2B revenues of 6.837 billion yuan and 1.196 billion yuan, respectively, reflecting a year-on-year increase of 38.43% and 14.43% [9]. Supply Chain and Logistics - The company has established a global mixed warehousing network, with a self-operated warehouse area of 334,900 square meters by the end of 2024, covering key markets in Europe and the U.S. [10]. - The logistics strategy includes optimizing warehouse locations to enhance delivery speed and reduce costs, with average shipping costs decreasing by 0.7 to 2.4 USD per package [10][11]. - The company is transitioning its supply chain to Southeast Asia to mitigate geopolitical risks and reduce costs, with 20% of shipments to the U.S. already sourced from this region [14]. Future Outlook - The company is projected to achieve net profits of 385 million yuan, 548 million yuan, and 709 million yuan in 2025, 2026, and 2027, respectively, with corresponding EPS of 0.96 yuan, 1.37 yuan, and 1.76 yuan [19][17]. - The ongoing expansion into new sales channels and the optimization of logistics are expected to support sustained revenue growth and improve profitability in the coming years [12][17].