Shenwan Hongyuan issued a research report stating that Bosideng (03998) announced that Yingxin International indirectly wholly owned by the group's founder, chairman of the board of directors and controlling shareholder, Mr. Gao Dekang, has entered into a block trade agreement with J.P.Morgan Securities (Asia-Pacific) Limited to sell 0.4 billion shares of existing shares at a price of HKD 4.31 per share to an independent buyer, accounting for approximately 3.64% of the total number of issued shares. The current expected distribution will be completed on July 5, 2024.
The bank believes that the company has been deeply involved in the down jacket industry for a long time, and the expansion of categories is expected to create a mid-to-high-end functional clothing group, which will increase the off-season performance while opening up the growth ceiling. This distribution will ease personal leverage, focus on company management and release market liquidity, but will not change the long-term growth trend. The bank maintains a "buy" rating. Maintaining profit forecasts, it is expected that the net income attributable to the parent company in FY25-27 will be 3.63/4.19/4.78 billion yuan, corresponding to PE ratios of 11/10/9 times, and maintaining a "buy" rating.