Institution: Changjiang Securities

Researcher: Yu Xuhui / Chen Jia / Ke Rui

Event description

On April 18, 2024, Bosideng was invited by the Organizing Committee of the 14th Beijing International Film Festival at the foot of Yanshan in Beijing.Crashbandicoot1pcThe fashion show of sunscreen clothing was held in the south square of Yanqihu International Convention Center. The strong product power of sunscreen clothing & brand power is expected to boost sales in spring and summer, in addition, the cold weather in January-February this year is expected to drive sales growth of Bosideng down jacket FY2024 (2023-4-1-2024-3-31), so we raise our forecast.

Event comment

Strong product power is the core, fashion show helps to improve the brand power. In recent years, with the rise of outdoor racing tracks, sunscreen clothing has been gradually recognized and accepted by the public. However, the quality of sunscreen clothing on the market is uneven, and the functional and timely design is still lacking. Since 2020, Bosideng has launched a series of more professional and fashionable sunscreen clothing through continuous research and design. 2022 Bosideng summer sunscreen clothing integrates the concept of "science and technology sunscreen +". Through the integration of scientific and technological sunscreen technology, the five major functional points fully meet the escalating needs of consumers for sunscreen. In 2024, Bosideng launched sunscreen 2Crashbandicoot1pcIn the. 0 era, we pay more attention to the research and development of professional sunscreen function and fashion color version design of sunscreen clothing, breaking the single form of traditional sunscreen clothing and adopting high-tech fabrics to create more fashionable professional sunscreen clothing with stronger sunscreen effect and comfort. The fashion show of sunscreen clothing held in conjunction with the Beijing Film Festival is expected to further enhance the brand strength, and sales in the spring and summer off-season are expected to accelerate.

The effect of multi-category expansion is prominent, and the cold wave promotes Bosideng sales during the peak season. Multi-category development, on the one hand, FY2024 Bosideng force sunscreen clothing and assault clothing and other categories, strong fast reaction ability to ensure that it can be quickly replenished, to achieve a rapid grasp of business opportunities for more than expected categories. On the other hand, the cold wave since December 2023 has led to low temperatures in some areas, and Bosideng down jacket sales are expected to exceed expectations.

In the short term, on the one hand, the good performance of the company's Xintuo charge clothing category and the winter peak season sales driven by the cold wave are expected to exceed expectations, on the other hand, the company's future strategic objectives are clear, under the background of continuous brand strength, the improvement of TOP store efficiency and the development of new categories are expected to continue to contribute to performance, and the strong supply chain capacity of down jackets is expected to be gradually replicated to other categories. In the medium and long term, the market space for outdoor and sunscreen clothing is still large, based on which we judge that the company still has room to improve the development of outdoor-related categories and seize business opportunities in the future, and is still expected to maintain steady growth in the medium and long term. Based on this, we raise our full-year performance forecast, and the company's FY2024-2026 is expected to achieve a net profit of 29.0,33.6 and 3.84 billion yuan respectively (previously expected to be 27.2,31.8 and 36.7), an increase of 35%, 16% and 14% respectively over the same period last year. The current price corresponds to a PE of 16x, 13x and 12x, respectively, maintaining the "buy" rating.

Risk hint

1. Category expansion is not as expected.

2. the company's business integration and operating efficiency are not as good as expected.

3. Retail recovery is not as good as expected.