Bosideng remains the clear leader in China’s down apparel market, supported by a multi-brand portfolio and ongoing brand premiumization. Since 1995, Bosideng brand has consistently ranked No.1 in China’s down apparel market by share, while its sub-brands Snow Flying and Binjora ranked the top three and top ten, respectively. Beyond its owned brands, the company has strengthened its presence in the premium down apparel segment through strategic investments and joint ventures, including Moose Knuckles and BOGNER. The Group implements a core strategy of brand-led empowerment, builds a differentiated multi-brand matrix that caters to broader market demands. We believe these initiatives strengthen Bosideng’s premium positioning, strengthen its international brand recognition, and support its transformation into a leading fashionable, functional and technological apparel group.

Product innovation and channel upgrading are pivotal to Bosideng’s resilient growth. On the product side, the company continues to drive product upgrades through a dual focus on technological innovation and fashion-oriented design, improving both product functionality and consumer appeal. In 2025, Bosideng collaborated with Kim Jones to launch the premium product line, Bosideng AREAL. It also parterned with Errolson Hugh to introduce the VERTEX series. On the channel side, the company has been optimizing its store network by expanding high-potential flagship stores and developing differentiated store formats, including its recently launched Summit Concept Stores. The company also adopts refined store-tier-based operations to improve store productivity and operating efficiency. Despite warmer-than-usual weather conditions during 2025–2026, the company maintained solid operating performance, reflecting the effectiveness of its product and channel strategy and its strong capability to manage seasonal volatility.

A flexible supply chain forms a core competitive moat of Bosideng in the down apparel category. Leveraging five decades of expertise, the company has built a highly efficient supply chain system tailored to the seasonality and demand uncertainty of the category. Through fulfilling small orders in quick responses on a rolling basis which would match the demand for orders, and quickens according to the actual demand, the company can complete the full process from order placement to delivery within 14 days, while limiting initial bulk orders to less than 40% of total products. This model helps reduce inventory risk, improve sell-through efficiency, and enhance responsiveness to changing weather and consumer demand. In our view, the supply chain of Bosideng is difficult for competitors to replicate, underpinned by the company’s scale, deep category specialization, and decades of accumulated operational expertise.

Snow Flying is emerging as a new growth driver, while ESG recognition and attractive shareholder returns further enhance Bosideng’s investment appeal. Since 2025, the company has been reshaping Snow Flying by strengthening its "Ice and Snow" and "Sports" genes, positioning the brand to capture growing demand from younger consumers and the broader outdoor/sports lifestyle market. Beyond its growth initiatives, Bosideng has established itself as an ESG leader among global apparel companies, as MSCI ESG AAA rating, inclusion in the S&P Global Sustainability Yearbook, and selection into the S&P Dow Jones Best-in-Class Index. On shareholder returns, the company has maintained a consistently high dividend payout ratio of around 70%–80% in recent years, with the current dividend yield close to 6.7%. We believe the company offers a combination of sustainable earnings growth, best-in-class ESG performance, and attractive shareholder returns, supporting its long-term investment case.

Robust revenue and earnings growth, resilient execution, and undemanding valuation underpin our positive investment thesis on Bosideng. The company has delivered solid topline and bottom-line growth, with revenue and profit CAGR of 9% and 14%, respectively, during FY24–FY26, demonstrating strong operating resilience. Given the nature of down apparel companies, we apply EV/EBITDA as a key valuation reference and select two peer groups for comparison. Based on Bosideng’s current share price of HK$4.71 and market capitalization of approximately HK$55 billion, we estimate FY27E and FY28E revenue at RMB29 billion and RMB31 billion, respectively. This implies FY27E/FY28E EV/EBITDA multiples of 5.0x/4.8x, compared with peer averages of 5.3x/5.0x. We believe Bosideng’s leading category position, improving brand premiumization, efficient supply chain, attractive dividend yield, and resilient earnings profile justify a more constructive valuation view.