CICC has reiterated its earnings per share forecasts for BOSIDENG (03998) at RMB0.32 for FY26 and RMB0.34 for FY27. The current share price implies a price-to-earnings ratio of 11 times for FY26 and 10 times for FY27. The firm maintains an Outperform rating and a target price of HK$5.65, which corresponds to 16 times FY26 earnings and suggests a potential upside of 40% from the current level.
Recently, BOSIDENG launched its spring and summer collections, including four new series: the premium AREAL line, urban outdoor wear, high-tech commuting apparel, and flexible lightweight sportswear. These launches highlight the group's progress in product innovation, brand enhancement, and global expansion. Key insights from CICC are outlined below.
BOSIDENG’s core IP series performed strongly in FY26, driving revenue growth while further elevating the brand image. Despite a volatile market environment, the group’s branded down apparel business is expected to achieve mid-to-high single-digit growth. The main BOSIDENG brand is projected to record mid-single-digit growth, with the higher-priced core IP series—representing the brand’s refreshed image—delivering standout performance. The Polar series maintained healthy growth on a relatively high base, reflecting strong consumer recognition. The Puffer series more than doubled its revenue, supported by initiatives such as participation in Paris Fashion Week and upgrades in technical fabrics. The premium urban AREAL line achieved a sell-through rate exceeding 95% for its first seasonal autumn-winter collection, successfully establishing consumer awareness.
By channel, online operations led by Douyin performed exceptionally well. Benefiting from BOSIDENG’s strong brand and product appeal, as well as effective operational management on Douyin, the company achieved high-quality growth on the platform with significantly fewer storefronts than its peers. This contributed to outstanding online business performance in FY26. Meanwhile, offline operations remained stable, with same-store sales expected to show year-on-year improvement.
Group-wide inventory levels remained healthy in FY26, supporting favorable discount and gross margin performance. CICC expects profit growth to outpace revenue growth in FY26. The firm also believes that healthy channel inventory and the continuous rollout of new products provide a solid foundation for high-quality growth in FY27.
The group’s sound financial position supports a consistently high dividend payout ratio exceeding 80%. CICC estimates the current dividend yield is close to 7%. Additionally, the company repurchased 4.246 million shares on March 31 and April 15 at an average price of approximately HK$4.012 per share, totaling around HK$17.04 million, demonstrating management confidence.
Risk factors include weaker-than-expected retail conditions, weather uncertainties, and fluctuations in raw material prices.