Bosideng recorded revenue/NP YoY growth of only 1%/5%, which is slightly below market expectations due to weak non-core business. However, we see its core Bosideng brand still performing solidly and outperforming the overall apparel sector, and recent Double-11 sales figures also suggested Bosideng’s down apparel is still gaining traction. We hence expect Bosideng’s 2HFY26 earnings should see some sequential improvement during its typical peak season, and expect the Company’s GPM profile should stay largely unchanged despite changing mix. Maintain BUY with a higher TP of HK$5.4, and we see Bosideng’s current FY2026E dividend yield at >6% attractive.
Key Factors for Rating
1HFY26 earnings slightly missed as non-core business dragged. During Apr-Sept 2025, Bosideng’s revenue grew 1.4% YoY to RMB8,928m, while NP grew 5.3% YoY to RMB1,189. We see both lines missed market expectations, after its FY25 full year earnings achieved 14% YoY growth in NP. However, we believe the earnings miss has limited impact to market sentiment on Bosideng, given that 1H is typically the weak season. By segment, the core down apparel grew by 8.7% YoY to RMB6,599m, which we see an encouraging sign of the Company’s extending product offering in summer. The weakness of the 1HFY26 earnings mainly comes from OEM segment (-12% YoY to RMB2,046m), as the orders suffered from weaker demand under US tariffs, but we see such impact would fade relatively in 2HFY26 due to seasonality.
Encouraging starts for 2HFY26 sales. As Bosideng enters the peak season in 2HFY26, the Company has seen positive signs of its down apparel. During Oct and Nov 2025, its offline sales recorded DD YoY growth, while retail discounts also improved YoY. For online sales, it also performed well during the Double- 11 Event, achieving top ranks in several categories. Hence, during the earnings call, mgmt. expected FY26 online sales to achieve favourable outcome. With reference to the predictions by China Meteorological Administration in Oct 2025, the likelihood of a colder winter in 2025 trended higher, which may support down apparel sales of Bosideng, in our view.
Margin profile likely to remain stable. In 1HFY26, Bosideng’s GPM/NPM improved by 0.15ppt/0.49ppt YoY to 50%/13.3% respectively. However, the core down apparel segment recorded a GPM YoY decline of 2ppts to 59.1%. However, we see this would not trigger material concerns, as Bosideng’s summer products usually carry lower GPM than winter products. The Company’s selfoperated retail channel has also seen improving sales sequentially during Oct- Nov 2025, which we believe it could support more operating leverage amid more cost saving initiatives. Hence, we expect 2HFY26 GPM to stay largely stable, and would not be weighed by factors such as rising cost of feathers.