According to information from the Zhito Finance APP, Guozheng International released a research report stating that they maintain a 'Buy' rating for BOSIDENG (03998), predicting EPS for the fiscal years 2025-2027 to be 0.32/0.36/0.41 yuan, with a Target Price of 5.6 Hong Kong dollars. As the leading brand of national down jackets, the company continues to focus on its main channel and main brand by launching innovative product series to expand brand coverage, thereby driving performance growth.

Guozheng International's main viewpoints are as follows:

Rapid revenue growth, continuous innovation in categories.

As of September 30, 2024, the group's revenue for the first half of the fiscal year recorded 8.804 billion yuan, an increase of 17.8% year-on-year, with a net income attributable to shareholders of 1.13 billion yuan, up 23% year-on-year. Both revenue and profit achieved impressive growth, with profit growing at a rate faster than revenue.

Brand down jacket business: Revenue increased by 22.7% year-on-year to 6.06 billion yuan, with a gross margin of 61.1%. The main brand of BOSIDENG recorded revenue of 5.28 billion yuan, a year-on-year increase of 19.4%, mainly driven by the hot sales of new categories such as sun protection clothing and down jackets, with a gross margin up 0.9pp to 65.4%; Xuezhongfei seized opportunities in the mid to low-end down jacket market, with revenue increasing by 47.1% year-on-year to 0.39 billion yuan, and gross margin up 6pp to 50.1%; the high cost-performance brand BINGJIE saw revenue increase by 61.7% year-on-year to 0.021 billion yuan.

OEM business: Revenue increased by 13.4% year-on-year to 2.32 billion yuan, with a gross margin of 20.1%. The company focuses on expanding categories with core customers and continuously adding high-quality clients. In addition, the continuously improving rapid response capability can better match customer demand.

Diversified Business: Revenue increased by 21.3% year-on-year to 0.117 billion yuan, gross margin improved by 1.3 percentage points to 27.6%, with the main focus on Samitek school uniforms, currently covering more than 500 primary schools, with an annual supply exceeding one million pieces, and the influence gradually increasing.

Continuously optimizing channel quality and enhancing Operation efficiency.

Offline, the company continues to solidify single store operations, forming a rocket-shaped channel matrix centered around official flagship stores and top stores in specialized categories and regions, achieving multidimensional high-quality growth. Online, the company actively expands into emerging platforms like Douyin, continually deepening marketing content innovation, exploring new sales models through technology upgrades, cross-industry cooperation, data analysis, and Asia Vets advertising, achieving comprehensive high-quality development. As of September 30, the number of self-operated down jacket stores increased by a net of 18 compared to the end of the previous fiscal year.