Bosideng International Holdings (3998) AI Stock Analysis

• Market Cap: HK$47.65B
• Dividend Yield: 6.15%
• Average Volume (3M): 16.53M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.62
• Revenue Growth: 5.51%
• EPS Growth: 3.90%
• Country: HK
• Employees: 13,082
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.12
• Shares Outstanding: 11,683,513,000
• 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$5.79
• Price Target Upside: 29.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.33
• Revenue Forecast (FY): HK$27.35B

• Rating: 78 Outperform
• Price Target: HK$4.50 ▲(0.45% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

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

High margins and operating efficiency

Sustained high gross and healthy operating margins indicate durable unit economics and sourcing/production scale. Consistent EBIT/EBITDA margins support reinvestment, pricing power and buffer against cost inflation, underpinning multi-quarter profitability stability.

Low leverage and strong ROE

Very low financial leverage plus a high return on equity show efficient capital deployment and financial flexibility. A strong equity ratio provides resilience to external shocks and capacity to fund growth or weather seasonal cash swings without relying on debt markets.

Consistent revenue growth backed by core brand

Positive top-line growth combined with ownership of the Bosideng core brand signals sustained demand and brand equity. Brand-led premiumization and multi-channel retailing support repeatable sales growth across seasons and help maintain long-term customer loyalty.

Negative Factors

Declining free cash flow

A quarter-over-quarter drop in free cash flow of this magnitude reduces internal funding for capex, inventory and shareholder returns. If the decline persists it can constrain strategic investments or force greater reliance on financing, weakening financial optionality.

Slightly weakening equity ratio

A falling equity ratio, even if modest, implies assets are growing faster than equity or liabilities are edging up. Over several quarters this trend can erode capital cushions, increase sensitivity to cyclical earnings swings, and reduce balance-sheet resilience.

Concentration in seasonal down apparel and single core brand

Heavy dependence on winter outerwear and one flagship brand concentrates revenue seasonally and by product category. This limits diversification, magnifies revenue volatility across seasons/years, and constrains growth unless the company expands brand portfolio or non-seasonal offerings.

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 primarily makes money by selling branded apparel—especially down jackets—under its brand portfolio. Revenue is generated from (1) direct-to-consumer sales through self-operated retail stores and counters and the company’s online channels, where Bosideng captures retail margin on each unit sold; and (2) sales to distributors/franchisees (where applicable), where the company recognizes revenue from wholesale shipments to partners who then sell to end consumers. In addition to core product sales, earnings are supported by brand-driven pricing (premiumization and product mix, particularly in higher-priced down apparel), seasonal demand for winter outerwear, and scale in sourcing and manufacturing/outsourced production arrangements that affect gross margin. If disclosed by the company, other income streams may include ancillary revenues related to brand operations (e.g., licensing or service income), but specific amounts and counterparties are not provided here and are therefore null.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	25.97B	25.90B	23.21B	16.77B	16.21B	13.52B
Gross Profit	14.86B	14.84B	13.83B	9.98B	9.74B	7.92B
EBITDA	7.10B	6.52B	5.95B	4.02B	3.09B	2.76B
Net Income	3.57B	3.51B	3.07B	2.14B	2.06B	1.71B
Balance Sheet
Total Assets	28.33B	27.40B	25.77B	20.94B	21.28B	18.96B
Cash, Cash Equivalents and Short-Term Investments	9.12B	11.61B	12.29B	9.68B	9.70B	8.40B
Total Debt	7.55B	1.86B	3.22B	3.16B	3.43B	2.91B
Total Liabilities	12.18B	10.37B	11.95B	8.34B	9.06B	7.71B
Stockholders Equity	16.02B	16.92B	13.74B	12.55B	12.19B	11.07B
Cash Flow
Free Cash Flow	5.01B	2.65B	6.78B	2.54B	2.09B	2.70B
Operating Cash Flow	6.49B	3.98B	7.34B	3.05B	2.67B	3.13B
Investing Cash Flow	-2.01B	-3.10B	-2.43B	616.56M	-685.84M	-3.86B
Financing Cash Flow	-3.43B	-2.94B	-2.38B	-2.49B	-1.23B	-1.09B

Bosideng International Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3998, the sentiment is Negative. The current price of 4.48 is below the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.59, and below the 200-day MA of 4.53, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 28.24 is Positive, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$47.65B	10.31	21.66%	6.15%	5.51%	3.90%
2313	78 Outperform	HK$83.80B	6.02	17.82%	4.31%	15.93%	20.70%
2232	76 Outperform	HK$19.23B	4.32	14.00%	5.87%	14.76%	23.04%
2299	75 Outperform	HK$9.71B	5.76	7.16%	―	-6.79%	66.07%
1234	69 Neutral	HK$4.31B	4.22	10.39%	8.21%	3.23%	-21.82%
2368	63 Neutral	HK$1.85B	2.63	12.81%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%