Bosideng (3998 HK) Early winter, and the sinking market continues to release its consumption power January 15, 2021 131

PSR Recommendation: ACCUMULATE Status: Downgraded
Target Price: HKDHKD4.50

Investment summary
The company announced on January 5 the retail performance of the first three quarters of
the FY21 (April to December 2020). In the branded down apparel business, based on GMV,
the core brand Bosideng increased by 25% YOY, while other brands a YOY increase of 40%+.
The company’s brand down income increased while other business income decreased
The company’s main down apparel business GMV has grown faster than we expected. Under
the influence of the epidemic at the beginning of the year, potential problems such as
inventory backlogs have made us more reserved for the company’s annual revenue. However,
many places across the country entered the winter earlier this year, and the company’s
discount management controlled appropriately, the adverse effects of the epidemic have
been digested in the first half of the fiscal year. In the Q3, the growth rate was significantly
higher than that in the 1H21. The company’s interim performance report showed that
Bosideng/other brand down jacket revenue growth rates in the 1H of the fiscal year were
19.7%/ 2.58%. Based on this calculation, the company’s revenue growth rate from down
jackets in the Q3 increased significantly.

About the author

Profile photo of Timothy Chong

Timothy Chong
Analyst
Research

Timothy Chong received Bachelor’s Degree with first class honor in Banking and Finance from University of Leicester. He is currently studying Master of investment management in Hong Kong Polytechnic University. Before joining Phillip Securities, Timothy worked at BOCOM international and he is equipped with years of experience in the capital market. Timothy is now a licensed research analyst at Phillip Securities and covers Consumer / Property Management sectors.

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