China International Capital Corporation has published a report maintaining its EPS forecasts for "BOSIDENG" (03998) at HKD 0.34/0.38 for FY26/27. The current share price reflects a P/E ratio of 13/12 times for FY26/27. The firm reiterates its outperform rating, raising the target price by 4.6% to HKD 5.89, corresponding to P/E ratios of 16/15 times for FY26/27, indicating a potential upside of 20% from the current price.
Key Insights: Recent company conditions - In a recent survey, the firm investigated "BOSIDENG's" new flagship store on Nanjing East Road, Shanghai. In 1HFY26, "BOSIDENG" achieved robust retail performance even during the off-peak season, laying a solid foundation for the upcoming peak season. Despite renovation activities at key flagship stores, "BOSIDENG" in the Shanghai region showcased steady sales performance.
The Shanghai region performed exceptionally in 1HFY26, maintaining solid growth in offline retail even with the flagship store undergoing renovations for months, particularly significant in the Nanjing East Road location. The firm believes that as the company continues to enhance its product offerings and brand strength, it will expand further into higher-end shopping areas and fine-tune its marketing strategies for offline retail, driving high-quality growth.
In addition, "BOSIDENG" is closely collaborating with its distributors to improve their operational quality, leading to strong retail performances. The firm also reported that following a cooldown period in East China around mid-October, the company's performance in the Shanghai region has accelerated.
Profit Stability in 1HFY26 - The firm expects stable revenue for "BOSIDENG" in 1HFY26. Despite certain fluctuations in OEM due to tariffs and other factors, the core featherdown business remains on a healthy growth trajectory. The report highlights that under the group's more flexible policy direction, the distribution channels displayed outstanding performance in 1HFY26, becoming a key driver of business growth. Meanwhile, the self-operated business maintained a steady performance as the group strategically adjusted sales focuses during the off-peak season.
With a slight decline in OEM ratio, the firm anticipates an increase in the group's profit margins while maintaining the trend of profit growth amid stable revenues.
Recent Collaboration with Kim Jones - On October 20, 2025, "BOSIDENG" launched a new "AREAL Premium Urban Line" and appointed renowned British designer Kim Jones, former Artistic Director of Dior and LV Menswear, as the creative director for the series. The firm views this move as a strong signal of the company's commitment to upgrading its high-end strategy and advancing brand internationalization and product innovation.