External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>1H24 was a beat and was rather surprising given the vulnerable macro environment.</li><li>Even though we are still cautious on the industry-wide de-stocking (mostly by sportswear brands) and the weather condition, we still think Bosideng could achieve its FY24E target and continue to outperform its peers, supported by: 1) highly successful new products and category expansion, 2) continual improvement in store productivity and efficiency, and 3) the long CNY ahead.</li><li>Current valuation of 12x FY3/24E and 6% yield are defensive already.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H24 was a beat and was rather surprising given the vulnerable macro environment.Even though we are still cautious on the industry-wide de-stocking (mostly by sportswear brands) and the weather condition, we still think Bosideng could achieve its FY24E target and continue to outperform its peers, supported by: 1) highly successful new products and category expansion, 2) continual improvement in store productivity and efficiency, and 3) the long CNY ahead.Current valuation of 12x FY3/24E and 6% yield are defensive already.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bosideng (3998 HK) – 1H24 results beat and a resilient strategy

HK/China Equity Long-Short

Osbert Tang, CFA

<ul>
<li>Even China's consumption market is tough, <a href="https://www.smartkarma.com/entities/bosideng-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:6537:1" rel="noopener">Bosideng Intl Holdings (3998 HK)</a> has still achieved a 25.1% profit growth. Revenue maintained a healthy trend while gross margin was stable.</li>
<li>Sales trend stayed solid in 2H FY24, and it ranked first in major online channels in various categories of apparel sales during the "double-11" shopping festival.</li>
<li>Store efficiency improved as revenue saw double-digit growth despite a 9.7% YoY fewer retail network. It is encouraging to see its 3-year target is to outperform the last 5 years.</li>
</ul>


Even China's consumption market is tough, Bosideng Intl Holdings (3998 HK) has still achieved a 25.1% profit growth. Revenue maintained a healthy trend while gross margin was stable.
Sales trend stayed solid in 2H FY24, and it ranked first in major online channels in various categories of apparel sales during the "double-11" shopping festival.
Store efficiency improved as revenue saw double-digit growth despite a 9.7% YoY fewer retail network. It is encouraging to see its 3-year target is to outperform the last 5 years.


Bosideng (3998 HK): Never Fail to Deliver

President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

Shenzhou International / Equity Bottom-Up

<ul>
<li>Key customers &amp; their retail partners battling excess inventory, waning consumer demand, and market share losses in certain geographies</li>
<li>Plans for capacity expansion amid demand uncertainties and alt data and macro picture may prove aggressive and along with risks of reshoring/nearshoring &amp; friend-shoring may prove margin dilutive</li>
<li>Consensus expectations for 2H23 and 2024 appear overly optimistic and valuation is not cheap given the growth profile</li>
</ul>


Key customers &amp; their retail partners battling excess inventory, waning consumer demand, and market share losses in certain geographies
Plans for capacity expansion amid demand uncertainties and alt data and macro picture may prove aggressive and along with risks of reshoring/nearshoring &amp; friend-shoring may prove margin dilutive
Consensus expectations for 2H23 and 2024 appear overly optimistic and valuation is not cheap given the growth profile


Shenzhou (2313 HK): Contract Mfr for Leading Sportswear Brands Facing Challenging Demand Outlook.

<ul>
<li>While having a slow FY23, <a href="https://www.smartkarma.com/entities/bosideng-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:6537:1" rel="noopener">Bosideng International Holdings (3998 HK)</a> is well-positioned to capture the rebound in down apparel sales growth as pent-up demand is released.  </li>
<li>We also expect a recovery in margin, further improvement in channel efficiency and operating leverage from cost control will add to earnings momentum. </li>
<li>Management expects revenue growth will at least sustain at the rate in the last 5 years. The stock's valuations are cheap when compared with growth outlook and global peers. </li>
</ul>


While having a slow FY23, Bosideng International Holdings (3998 HK) is well-positioned to capture the rebound in down apparel sales growth as pent-up demand is released.  
We also expect a recovery in margin, further improvement in channel efficiency and operating leverage from cost control will add to earnings momentum. 
Management expects revenue growth will at least sustain at the rate in the last 5 years. The stock's valuations are cheap when compared with growth outlook and global peers. 


Bosideng (3998 HK): Outlook Stays Promising

<ul><li>FY3/23 was a miss as the core income only increased by 7% YoY.</li><li>However, given: 1) the low base, 2) more innovative product launches and 3) continual improvement in store productivity, we believe 15%/ 19% sales/ net profit are still achievable in FY25E.</li><li>We are still cautious on the level of competition and weather condition but current valuation of 12x FY2/24E and 6.2% yield are protective.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FY3/23 was a miss as the core income only increased by 7% YoY.However, given: 1) the low base, 2) more innovative product launches and 3) continual improvement in store productivity, we believe 15%/ 19% sales/ net profit are still achievable in FY25E.We are still cautious on the level of competition and weather condition but current valuation of 12x FY2/24E and 6.2% yield are protective.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bosideng (3998 HK) – FY23 results missed and a moderate outlook

Hong Kong

Bosideng is the largest down clothing company in the PRC, specializing in the research, design, development, manufacturing, marketing, and distribution of branded down apparel. The company also offers ladieswear, school uniforms, and provides OEM services. It was founded in 1976 and is headquartered in Hong Kong.

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Bosideng (3998 HK)

Bosideng (3998 HK) – 1H24 results beat and a resilient strategy

Even though we are still cautious on the industry-wide de-stocking (mostly by sportswear brands) and the weather condition, we still think Bosideng...

CMB International

Bosideng (3998 HK): Never Fail to Deliver

Bosideng achieved 25.1% profit growth despite tough consumption market. Healthy revenue growth, stable margins, and improved store efficiency are...

Osbert Tang, CFA

Shenzhou (2313 HK): Contract Mfr for Leading Sportswear Brands Facing Challenging Demand Outlook.

Consensus estimates do not account for customer, retailer, Asian market share shift, macro, alt data and geopolitical risks.

Robert C Prather Jr

Bosideng (3998 HK): Outlook Stays Promising

The release of pent-up demand, recovery in gross margin, further improvement in channel efficiency and operating leverage from cost control will...

Osbert Tang, CFA

Bosideng (3998 HK) – FY23 results missed and a moderate outlook

We are still cautious on the level of competition and weather condition but current valuation of 12x FY2/24E and 6.2% yield are protective.

CMB International

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