GF Sec believes that the main brand Bosideng is expected to maintain rapid growth by strengthening brand leadership, category operation, channel operation, and customer experience.
According to a research report published by GF Sec on the Zhitong Finance app, Bosideng (03998) is expected to exceed expectations in the 2023/24 fiscal year. According to the company's financial report, the company's revenue for the fiscal year 2023/24 was 23.214 billion yuan, a year-on-year increase of 38.4%, and a net profit of 3.074 billion yuan attributable to the parent company, a year-on-year increase of 43.7%. The company's earnings per share were 0.28 yuan, and the annual dividend per share was about 0.25 Hong Kong dollars. The company maintains a "buy" rating with a target price of 5.39 Hong Kong dollars.
According to the report, the revenue for the branded down jacket business was 19.521 billion yuan, a year-on-year increase of 43.8%; the revenue for the OEM processing business was 2.67 billion yuan, a year-on-year increase of 16.4%; the revenue for the women's clothing business was 0.82 billion yuan, a year-on-year increase of 16.6%; the revenue for the diversified clothing business was 0.203 billion yuan, a year-on-year increase of 0.3%. In addition, the online revenue of the branded down jacket business was 6.836 billion yuan, a year-on-year increase of 41.3%, accounting for 35.0% of the total revenue.
GF Securities is bullish on the company's performance in the 2024/25 fiscal year. For the branded down jacket business, the main brand Bosideng is expected to maintain rapid growth by enhancing brand leadership, upgrading brand recognition, improving store image, strengthening category operation, enhancing channel operation, and improving customer experience. Xuezhongfei is expected to maintain high growth by seizing the opportunity of the high cost-effective down jacket market. For OEM business, the demand rebounds as the downstream overseas brand goes out of inventory, and the continuous leveraging of the supply chain advantage is expected to maintain rapid growth. For the fashion women's wear business, it is expected to resume healthy growth through reform.