[ET Net News Agency, 30 November 2020] CMB International Securities (CMBIS) lifted its
target price for Bosideng International Holdings (03998) to HK$4.23 from HK$4.04 and
reiterated its "buy" rating.
The research house said Bosideng's excellent 1H results beat CMBIS's already bullish
estimates. Despite relatively prudent guidance, CMBIS is still confident on a strong 2H
with sales/net profit to grow by 26%/39%, driven by (1) meaningful gross profit margin
expansion, (2) low channel inventories and strong re-orders, (3) operating leverage and
effective cost savings, and (4) low base.
CMBIS revised up its diluted EPS forecasts in FY2021-23 by 6.1%/4.7%/9.6% to factor in
stronger self-owned and online sales, significant GP margin surge, better-than-expected
OEM businesses and effective opex savings.
It added that Bosideng's valuation of 19x FY2022 P/E with a 22% net profit CAGR during
FY2020-23 is highly attractive, compared to Canada Goose's 29x and 19% and Moncler Spa's
34x. (KL)