财务管理(波司登)

Bosideng（波司登）(03998.HK)

이패닥2017055223 pany Profile

Since its establishment,Bosideng（波司登）has been the No.1seller of down jackets for23consecutive years.It is the debut leader in down jackets.In the early20th century,Bosideng expanded the four seasons of clothing based on the reputation of the down jacket brand,with a revenue of nearly10billion.However,due to the impact of the overall industry environment in2012,the adjustment of channels and inventory for three consecutive years led to a decline in revenue.By2015,the company saw signs of improvement and revenue increased steadily.

FY2017/18(2017.3.31~2018.3.31)achieved satisfactory operating results,with revenue increasing by 30.3%to8.88billion and net profit increasing by57%to615million yuan.Bosideng re-planned its strategic goal in2018–focusing on the main channel,focusing on the main brand and shrinking diversity.Rebranding from the channel side,product side,and marketing side,according to our judgment,Bosideng brand sales growth rate of35%+.The corresponding company's share price has risen from around RMB0.7/share at the beginning of2018(FY2017fiscal year ending March31,2018)to the current level of RMB2/share.

In May2019,the company announced that:1)the production and processing services provided by the parent company to the listed company were expanded from down jacket products to down jacket related materials;2)due to the unexpected increase in sales of down jackets,the FY2020payable parent company fee limit was revised.It will be extended for two years(the upper limit of2020/2021/2022is17.7/24.7/32.7billion yuan).This announcement highlights the company's continued deepening of the down apparel production chain and confidence in the future down apparel business.

In2019,with the recovery of the brand,product design innovation,marketing publicity,terminal store optimization and upgrading,sales are expected to continue to improve.For the medium and long term,I believe that the company's breakthrough in price increase strategy,channel upgrade and product innovation will help drive the company's subsequent large-scale growth.

Chart1,the company's stock price and valuation Changes

（from WIND database）

Ⅱ.financial analysis

The company's gross profit margin declined significantly in FY2013/14and FY2014/15,but FY2016/17and FY2017/18have gradually steadily rebounded.In terms of splitting,the gross profit margin of down jackets has been reduced due to discounts in previous years,and the gross profit margin has declined due to large changes in various brands.The future gross profit margin will be improved,mainly:

1.Down jackets will increase the average price with the launch of the new series;

2.Bosideng's men's wear and furniture business was divested,and the gross profit of the mid-to-high-end women's wear business was relatively high,which led to the company's gross profit level rising.The company's expense ratio decreased from FY2015/16year by year,mainly due to the reduction in the number of terminal stores and better management control.However,considering that the existing stores will be updated and replaced in the future,the sales expense ratio will increase,and the management fees will also face upward pressure due to the impact of equity incentives.

II.Chart2,Bosideng profit margin level(%)

（from WIND database）

Chart3,Bosideng three fees level(%)