Bosideng International Holdings (3998) AI Stock Analysis

• Market Cap: HK$53.73B
• Dividend Yield: 5.93%
• Average Volume (3M): 16.53M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.58
• Revenue Growth: 5.51%
• EPS Growth: 3.90%
• Country: HK
• Employees: 13,082
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.11
• Shares Outstanding: 11,669,038,000
• 10 Day Avg. Volume: 18,826,543
• 30 Day Avg. Volume: 16,528,993
• PEG Ratio: 0.82
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 15.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$5.68
• Price Target Upside: 22.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$5.50 ▲(18.53% Upside)

Bosideng International Holdings scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth, profitability, and solid balance sheet are significant strengths. Technical indicators show positive momentum, although the RSI suggests caution as it approaches overbought levels. The lack of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, reinforcing Bosideng's strong market position in the apparel industry.

Profitability

High profitability margins suggest efficient cost management and strong pricing power, contributing to sustainable financial performance.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow could limit the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Equity Ratio Decline

A declining equity ratio may indicate increased reliance on debt or slower asset growth, which could affect financial stability if not managed carefully.

Cash Generation Concerns

Moderate cash generation relative to profits suggests potential challenges in converting earnings into cash, which is crucial for funding operations and investments.

Bosideng International Holdings Business Overview & Revenue Model

Company Description

Bosideng International Holdings Limited researches, designs, develops, manufactures, markets, and distributes branded down apparel products, original equipment manufacturing (OEM) products, and non-down apparel products in the People's Republic of China. The company operates through four segments: Down Apparels, OEM Management, Ladieswear Apparels, and Diversified Apparels. It engages in the business of sourcing and distributing branded down and ladieswear apparels; and non-seasonal apparels, including branded menswear, school uniform, and children's wear. The company provides down apparel products under the Bosideng, Snow Flying, Bengen, etc. brands; ladies wear products under the JESSIE, BUOU BUOU, KOREANO, and KLOVA brands; and school uniforms under the Sameite brand. It also offers network consulting and e-business of down and non-down apparel; logistics and storage services; and brand design and development services, as well as operates as an advertisement agency. As of March 31, 2022, it operated 462 ladieswear retail outlets; 364 self-operated retail outlets; and 98 retail outlets operated by third party distributors. Bosideng International Holdings Limited was founded in 1976 and is based in Central, Hong Kong.

How the Company Makes Money

Bosideng generates revenue primarily through the sale of its down jackets and other outerwear products, which account for a significant portion of its total sales. The company operates through various sales channels, including direct-to-consumer retail stores, online platforms, and wholesale distributions. Key revenue streams include retail sales from its branded stores, e-commerce sales through its website and third-party platforms, and sales to other retailers. Additionally, Bosideng has entered into strategic partnerships and collaborations to enhance its brand visibility and expand its market reach, which contribute to its earnings. Seasonal demand for winter apparel and the increasing popularity of outdoor activities also play a crucial role in driving the company's sales.

Bosideng International Holdings Financial Statement Overview

Summary

Bosideng International Holdings exhibits strong financial health with robust revenue growth and profitability, supported by a solid balance sheet. However, the decline in free cash flow growth is a potential risk that needs addressing. Overall, the company is well-positioned in the apparel manufacturing industry, with efficient operations and prudent financial management.

Income Statement

Bosideng International Holdings has demonstrated strong revenue growth with a 5.52% increase in the latest year, alongside healthy gross and net profit margins of 57.29% and 13.57%, respectively. The EBIT and EBITDA margins are also robust at 20.44% and 25.18%, indicating efficient operational management. The consistent growth trajectory and profitability metrics highlight the company's strong market position and operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.11, reflecting prudent financial management. The return on equity is impressive at 20.77%, showcasing effective use of shareholder funds. The equity ratio of 61.76% indicates a strong capital structure, though the slight decrease in equity ratio over time suggests a need for careful monitoring of asset growth relative to equity.

Cash Flow

While the operating cash flow remains strong, the free cash flow has decreased by 25.33%, which could be a concern if it continues. The operating cash flow to net income ratio of 1.13 suggests good cash conversion, but the decline in free cash flow growth requires attention. The free cash flow to net income ratio of 0.67 indicates a moderate level of cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.90B	25.90B	23.21B	16.77B	16.21B	13.52B
Gross Profit	14.84B	14.84B	13.83B	9.98B	9.74B	7.92B
EBITDA	6.52B	6.52B	5.95B	4.02B	3.09B	2.76B
Net Income	3.51B	3.51B	3.07B	2.14B	2.06B	1.71B
Balance Sheet
Total Assets	27.40B	27.40B	25.77B	20.94B	21.28B	18.96B
Cash, Cash Equivalents and Short-Term Investments	11.61B	11.61B	12.29B	9.68B	9.70B	8.40B
Total Debt	1.86B	1.86B	3.22B	3.16B	3.43B	2.91B
Total Liabilities	10.37B	10.37B	11.95B	8.34B	9.06B	7.71B
Stockholders Equity	16.92B	16.92B	13.74B	12.55B	12.19B	11.07B
Cash Flow
Free Cash Flow	2.65B	2.65B	6.78B	2.54B	2.09B	2.70B
Operating Cash Flow	3.98B	3.98B	7.34B	3.05B	2.67B	3.13B
Investing Cash Flow	-3.10B	-3.10B	-2.43B	616.56M	-685.84M	-3.86B
Financing Cash Flow	-2.94B	-2.94B	-2.38B	-2.49B	-1.23B	-1.09B

Bosideng International Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.64
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3998, the sentiment is Neutral. The current price of 4.64 is below the 20-day moving average (MA) of 4.91, below the 50-day MA of 4.80, and above the 200-day MA of 4.31, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.35 is Neutral, neither overbought nor oversold. The STOCH value of 2.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3998.

Bosideng International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3998	78 Outperform	HK$53.73B	13.62	23.92%	5.93%	5.51%	3.90%
2313	78 Outperform	HK$93.27B	13.32	18.24%	4.29%	15.93%	20.70%
2232	76 Outperform	HK$20.31B	12.14	14.24%	5.73%	14.76%	23.04%
2299	75 Outperform	HK$9.82B	11.70	7.26%	―	-6.79%	66.07%
1234	69 Neutral	HK$4.06B	8.89	10.67%	8.26%	3.23%	-21.82%
2368	63 Neutral	HK$2.02B	8.45	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Bosideng International Holdings Corporate Events

Bosideng Reports Revenue Growth and Declares Interim Dividend

Bosideng International Holdings Limited reported a 1.4% increase in revenue to approximately RMB8,927.6 million for the six months ended September 30, 2025. The company also saw a slight increase in its gross profit margin to 50.0% and a 5.3% rise in profit attributable to equity shareholders, amounting to approximately RMB1,189.4 million. The Board declared an interim dividend of HKD6.3 cents per ordinary share, reflecting the company’s stable financial performance. These results indicate Bosideng’s steady growth and robust market positioning within the apparel industry, providing positive implications for its stakeholders.

Bosideng International Announces Interim Dividend for 2025

Bosideng International Holdings Limited has announced an interim cash dividend of HKD 0.063 per share for the six months ending September 30, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and may positively influence investor confidence in its financial health and market positioning.

Bosideng Schedules Board Meeting to Review Interim Results

Bosideng International Holdings Limited has announced a board meeting scheduled for November 27, 2025, to discuss and approve the interim results for the six months ending September 30, 2025, and to consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, influencing its market position and stakeholder confidence.