Jinwu Financial News | CITIC Construction Investment released a research report that Bosideng (03998) achieved rapid growth online from November to December 2023, driven by Douyin's rapid volume, and is expected to maintain a high level of offline prosperity. Looking ahead to January to February 2024, the first cold wave will arrive at the end of January. Combined with the relatively late Spring Festival, extending the peak season sales period, the company's 2024 peak season sales performance is expected to exceed expectations.
According to the bank, the sales side is optimistic that the company will maintain steady revenue growth driven by the expansion of categories such as lightweight down jackets and jackets and the peak season sales boom. The annual revenue growth rate is expected to reach 20%, and gross margin is expected to rise steadily throughout the year; in terms of operation, the company's current inventory level remains low in the industry, inventory pressure is low, and the discount rate is expected to maintain an ideal level; in terms of costs, it is expected that the fee control strategy will continue to improve slightly throughout the year.
The bank raised the company's profit forecast. It is estimated that the company's FY24-FY26 revenue will be $201.6, 231.1, and 26.23 billion yuan respectively, up 20.2%, 14.6%, and 13.5% year-on-year; net profit to mother will be 27.1, 31.1, and 3.54 billion yuan, respectively, up 26.8%, 14.7%, and 13.7% respectively; corresponding PE is 12.9x, 11.2x, and 9.9x, maintaining the “buy” rating.