CICC: Maintains BOSIDENG (03998) Outperform Rating, Raises Target Price to HK$5.89

CICC released a research report stating that BOSIDENG (03998) FY26/27 EPS forecast is maintained at 0.34/0.38 yuan. The current stock price corresponds to 13/12 times FY26/27 P/E ratio. It maintains an outperform industry rating, considering the industry valuation center shifting upwards. The target price was raised by 4.6% to 5.89 Hong Kong dollars, corresponding to 16/15 times FY26/27 P/E ratio, with a 20% upside potential compared to the current stock price. Main points of CICC: Company Recent Situation Recently, CICC conducted a survey of BOSIDENG's new flagship store on Nanjing East Road in Shanghai. BOSIDENG achieved steady retail performance in the off-season of 1HFY26, laying the foundation for the upcoming peak season. Despite the flagship store renovation, BOSIDENG's sales in the Shanghai region remained strong in 1HFY26. The Shanghai region of BOSIDENG continued to perform well in 1HFY26. Despite the flagship store on Nanjing East Road, which contributes a large proportion to offline sales, undergoing renovations for several months, offline retail in the Shanghai region still achieved steady growth. It is believed that with the continuous improvement of the company's products and brand power, the Shanghai region will expand more high-end commercial channels and carry out more refined marketing management of offline retail channels, driving high-quality growth in performance. At the same time, BOSIDENG closely cooperates with distributors to improve the quality of distributor operations, leading to excellent retail performance of distributors. Meanwhile, CICC learned that the company's performance in the Shanghai region accelerated after the temperature dropped in mid-October. CICC expects BOSIDENG to maintain steady profit growth in 1HFY26. CICC expects BOSIDENG's group revenue to remain stable in 1HFY26. Although OEM encountered some fluctuations due to factors such as tariffs, the group's main business of down jackets still maintained a healthy growth momentum. The distribution channels performed well under the group's more flexible policy guidance, becoming an important driver of business growth in 1HFY26; the self-operated business maintained stable performance as the group strategically adjusted sales focus in the off-season. Additionally, with a slight decrease in OEM's proportion, CICC expects the group's profit margin to improve in 1HFY26, maintaining a trend of profit growth in the case of stable revenue. BOSIDENG partnered with Kim Jones to release a new series, demonstrating its firm determination to upgrade brand high-end strategy On October 20, 2025, BOSIDENG released the new "AREAL Advanced Urban Line" and appointed renowned British designer, former Dior and LV menswear artistic director Kim Jones as the creative director of the series. CICC believes that this move fully demonstrates the company's forward-looking layout in strategic high-end, international brand, and product innovation aspects.