BOSIDENG(03998) 东方证券·2024-12-04 13:10Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 5.16 HKD based on a 15x PE valuation for FY25 [3][7]. Core Insights - The company reported strong performance in FY25H1, achieving revenue of 8.804 billion HKD, a year-on-year increase of 17.8%. Operating profit reached 1.47 billion HKD, up 19.6%, and net profit attributable to shareholders was 1.13 billion HKD, reflecting a 23% growth. A mid-term dividend of 0.06 HKD per share was proposed, marking a 20% increase [2][3]. - The brand's down jackets are identified as the core growth driver, with FY25H1 revenue from this category increasing by 22.7%. Notably, the main brand, Bosideng, despite closing 124 stores, still achieved rapid sales growth, indicating effective channel optimization and focus on top stores [2]. - The women's wear segment faced challenges, with a 21.5% decline in revenue due to a persistently weak market environment, leading to an operating loss of 50.42 million HKD. The company is reassessing its strategic focus on this non-core business [2][3]. - The company's OEM business saw a 13.4% revenue growth in FY25H1, maintaining a gross margin above 20% [2]. - Inventory turnover increased to 189 days, up 29 days year-on-year, primarily due to proactive inventory management in response to market conditions [2]. - The company continues to focus on brand-led development, with positive market feedback on new product categories such as sun protection clothing and lightweight down jackets. A collaboration with the Harbin government to create a brand IP is also noted [2]. Financial Forecast and Investment Recommendations - The earnings forecast for FY25-27 has been adjusted, with expected earnings per share of 0.32, 0.37, and 0.43 HKD respectively. The previous estimates for FY25 and FY26 were 0.33 and 0.38 HKD [3][7]. - The company is projected to achieve revenue growth of 13.9% in FY25, with operating profit growth of 12.2% and net profit growth of 16.8% [4].