BOSIDENG (03998) Chairman Gao Dekang emphasized at the company's 2025/26 interim results briefing that "there are no permanently successful enterprises, only those evolving with the times." Anchored by its dual-focus strategy—prioritizing down jackets as its core business and functional fashion-tech apparel—BOSIDENG aims to become "a world-leading fashion-tech functional apparel group," demonstrating resilience amid complex market conditions.
On November 27, BOSIDENG reported interim results for the 2025/26 fiscal year. Revenue reached approximately RMB8.93 billion (up 1.4% YoY), while net profit attributable to shareholders grew 5.2% YoY to RMB1.19 billion, marking an eighth consecutive year of record interim earnings. The company declared an interim dividend of 6.3 HK cents per share. Its stock price recently hit a yearly high of HK$5.37, with a 46.7% YTD surge, and attracted HK$805 million in net inflows over 60 trading days.
**Core Business Strength**: Down jacket revenue, accounting for 73.6% of total sales, rose 8.3% YoY to RMB6.57 billion, led by the flagship brand (RMB5.72 billion, +8.3%). Sub-brands like Snow Flying and Bingjie expanded market coverage through differentiated positioning. Gross margin edged up 0.1 ppt to 50%, and operating profit margin improved 0.3 ppt to 17%, reflecting cost optimization and digital transformation. Inventory turnover days dropped significantly by 11 days to 178.
**Premiumization & Innovation**: In October 2025, BOSIDENG launched the high-end "AREAL" line with ex-luxury creative director Kim Jones and debuted the "Master Puff" collection at Paris Fashion Week, blending haute aesthetics with 49 years of down expertise. The brand ranked 45th on Brand Finance’s 2025 "Top 50 Most Valuable Apparel Brands" and 260th in World Brand Lab’s "Asia 500." R&D drove 398 new patent filings (1,520 cumulative), while its "BSD.AI Design Brain" streamlined prototyping. Innovations like convertible down jackets (-20°C to 20°C adaptability) and sun-protective apparel diversified growth avenues.
**Peak Season Catalysts**: Favorable weather (a major cold wave) and the 2026 Lunar New Year’s later timing (mid-February) extend winter sales. Online sales grew 2.2% to RMB1.43 billion, with 85% of Douyin revenue from live commerce. Offline, stores expanded to 3,558 (+88 YoY), supported by flexible supply chains (99% restocking rate for top styles).
**Analyst Sentiment**: Brokers maintain "Buy" ratings, with Oriental Securities targeting HK$6.31, citing sustainable growth and dividends. CICC raised its target to HK$5.89, highlighting premiumization and dealer performance. Huaxi Securities expects accelerated H2 sales post-inventory adjustments and long-term gains from outdoor apparel expansion and operational efficiency.
BOSIDENG’s adaptive strategies and innovation pipeline position it to lead the global functional fashion-tech sector, delivering value to consumers and investors alike.
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