Jinwu Financial News | According to Ping An Securities Research Report, Bosideng (03998) Group once again ushered in take-off through the successful strategic focus of “focusing on the main channel and focusing on the main brand”. Currently, the company uses down jacket products as the core and expands the category with sunscreen products, which is expected to lead to a second growth curve. Under the opportunity of the continuous rise of domestic brands, the company's development showed strong resilience.
The bank believes that the company's valuation is cost-effective. It is estimated that FY2024-FY2026's overall revenue will be 20.09 billion yuan/23.63 billion yuan/26.85 billion yuan, respectively, +21.0%/+16.4%/+13.7% YoY; net profit to mother will be 2.69 billion yuan/3.12 billion yuan/3.55 billion yuan, respectively, +25.9%/+15.7%/+14.0% YoY. Using a relative valuation method, the bank calculated that Bosideng Group's target price was HK$5.61, with room for an increase of 21.5% compared to the closing price on May 8, 2024. For the first time, it was covered and given a “Highly Recommended” rating.