Lyon: Raised BOSIDENG (03998) target price to HK$5.8, strong sales expected in the second half of the fiscal year

Lyon released a research report stating that the target price of BOSIDENG (03998) has been raised from 5.2 Hong Kong dollars to 5.8 Hong Kong dollars, as the forecasted P/E ratio has increased to 13 times (originally 12 times). Considering the forecasted dividend yield of 6.5% in the next 12 months, the risk-return ratio is attractive. With a low base in the previous period, the rating of "outperform the market" is maintained. BOSIDENG's sales and net profit in the first half of the fiscal year increased by 1.4% and 5.3% respectively compared to the same period last year, meeting expectations. The management reiterated the guidance for the 2026 fiscal year, expecting a 10% year-on-year increase in sales, with the net profit growth rate exceeding the sales growth. From October to date, offline sales of the BOSIDENG brand have recorded double-digit year-on-year growth, with a narrowing discount range, and online business has maintained strong momentum during the Double Eleven period. The bank has raised its net profit forecast for the 2026 to 2028 fiscal years by 1 to 2% to reflect a more favorable business mix and strict cost control; sales forecasts remain largely unchanged.