Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 3.82 CNY and an expected relative return of 10%-20% over the next six months [5][16]. Core Views - The company reported a revenue of 1.3 billion CNY in Q1 2025, a decrease of 4% year-on-year, and a net profit attributable to shareholders of 170 million CNY, down 32% year-on-year [1]. - The increase in management expenses by 26% is attributed to the acquisition of the Woolrich brand, brand consulting services, and rising labor costs, along with depreciation from new industrial parks [1]. - Financial expenses surged by 82.24% due to reduced bank deposits and lower interest income [1]. - The report adjusts profit forecasts for 2025-2027, expecting net profits of 460.57 million CNY, 543.46 million CNY, and 629.44 million CNY respectively, with corresponding EPS of 0.32 CNY, 0.37 CNY, and 0.43 CNY [4][9]. Summary by Sections Financial Performance - Q1 2025 revenue was 1.3 billion CNY, a 4% decrease year-on-year, with a net profit of 170 million CNY, down 32% [1]. - Management expenses increased by 26% due to various factors including brand acquisition and rising costs [1]. - Financial expenses rose by 82.24% due to decreased interest income [1]. Profit Forecasts - The report revises profit forecasts, projecting net profits of 460.57 million CNY for 2025, 543.46 million CNY for 2026, and 629.44 million CNY for 2027 [4][9]. - EPS is expected to be 0.32 CNY in 2025, 0.37 CNY in 2026, and 0.43 CNY in 2027 [4][9]. Market Positioning - The company focuses on maintaining its brand strength and market position through systematic improvements and targeted strategies across its various brands [2][3].

Group 1: Acquisition of Woolrich by Baoxiniang - Baoxiniang has completed the strategic acquisition of the global intellectual property rights of the high-end outdoor brand Woolrich, excluding Europe, for a total price of €50.83 million (approximately ¥384 million), which accounts for 8.84% of the company's latest audited net assets [3][4] - The acquisition grants Baoxiniang full access to Woolrich's core intellectual property rights in 26 countries and regions, including China, the US, Canada, and Australia, while Woolrich retains rights in Europe [4] - Woolrich, founded in 1830, is one of the oldest outdoor brands in the US, known for its classic products like buffalo check shirts and Arctic parkas, with 75% to 80% of its revenue coming from Europe [4] Group 2: Performance of Baoxiniang and Hazzys - Baoxiniang currently owns three brands with over ¥1 billion in revenue, including Baoxiniang, Hazzys, and Baoniao, with Hazzys showing significant growth, contributing nearly equal revenue to Baoxiniang's main brand [7] - In 2023, Baoxiniang's revenue increased by 21.8% to ¥5.254 billion, with net profit rising by 52.1% to ¥698 million, both reaching historical highs [7] - Hazzys, acquired in 2007, saw a revenue increase of 24.1% to ¥1.76 billion, surpassing Baoxiniang's main brand and driving the group's total revenue above ¥5 billion [7] Group 3: Acquisition of Bonpoint by Youngor - Youngor has acquired 100% of the French high-end children's fashion brand Bonpoint from private investment company EPI, which has seen its store count double since being acquired in 2007 [9][10] - Bonpoint generates 48% of its revenue from Asia and 42% from Europe, indicating significant growth potential in North America and other emerging markets [10] - Youngor's revenue increased by 12.7% to ¥8.4 billion in the first three quarters of the previous year, while net profit decreased by 6.7% to ¥2.51 billion [10]