Northeast: Maintain "Buy" rating for BOSIDENG (03998) with net profit growth exceeding revenue growth guidance.

Northeast released a research report, maintaining a "buy" rating for BOSIDENG (03998), expecting a year-on-year growth in operating income of 10.1%/10.4%/10.5% to 285.1/314.6/347.7 billion yuan from FY2026 to FY2028; net profit attributable to shareholders is expected to increase by 11.7%/12.4%/11.8% to 39.2/44.1/49.3 billion yuan, with corresponding valuations of 13/12/11 times. The company is collaborating with internationally renowned designers on product design, increasing the use of functional fabrics to enhance product performance; on the channel side, it is promoting store-based operations and upgrading stores to strengthen individual store operations. The upgrade and transformation of the Xue Zhong Fei and Bing Jie brands are being advanced, positioning them in the mass-market high cost-performance segment. The report states that the company experienced growth in the off-season warm winter of the 24/25 fiscal year and is expected to maintain steady growth in the 25/26 fiscal year. In the 24/25 fiscal year, the company's operating income increased by 11.6% to 25.9 billion yuan, with a corresponding 11% increase in revenue from the brand's down jackets, of which the main BOSIDENG brand's revenue increased by 10.1% to 18.48 billion yuan, achieving growth against the warm winter trend. Expense control led to a steady increase in net profit margin, with net profit attributable to shareholders increasing by 14.3% to 3.51 billion yuan. In the first half of the 25/26 fiscal year, the brand's down jacket business is developing steadily, while processing/manufacturing business is under pressure, and it is expected that the group's income will remain basically flat year-on-year. The full fiscal year is expected to maintain a revenue growth rate of 10%, with net profit growth exceeding the revenue growth rate guidance. On October 7th, BOSIDENG launched its "Puff" series during Paris Fashion Week, with sports and entertainment stars such as Guo Jingjing, Dong Jie, and Wu Qianyu wearing BOSIDENG Puff products. On October 20th, the BOSIDENGAREAL high-end urban line was officially launched, featuring over 20 products in the first season, including clothing and accessories for men and women. Positioned as business down jackets, with a price range of 2399-3999 yuan, combining functional fabrics and fashionable design. This further enhances the upgrade of the BOSIDENG brand, aligning with the company's strategic direction of "professional down jackets + high-quality design". The AREAL series appointed Kim Jones, former artistic director of menswear brands Louis Vuitton and Dior, as creative director. The company continues to collaborate with internationally influential designers to promote brand upgrade and strengthen international influence. According to China Meteorological Network, the strongest cold air since the second half of 2025 swept across the central and eastern regions of China from October 16th. From the 16th to the 19th, some areas in northern North China, southern Northeast China, central and western Inner Mongolia, Hunan, and Guizhou experienced temperature drops of over 10C. As the cold air moves southward, the minimum temperatures in regions such as Shanghai, Zhejiang, Jiangsu, Sichuan, and Chongqing will drop to 10-20C. The temperature drop officially marks the start of the peak season for down jacket sales. In addition, the Chinese New Year in 2026 falls in late February, extending the peak season for winter clothing sales by about 15 days compared to 2025, benefiting the consumption of branded winter clothing.