CICC: Maintain Bosideng (03998) outperform industry rating, target price HKD 5.65

CICC Research Report states that Bosideng (03998) maintains its FY26/27 EPS forecast at 0.32/0.34 RMB, with the current stock price corresponding to 11/10 times FY26/27 P/E ratios. The rating remains “Outperform” with a target price of HKD 5.65, implying a 16x FY26 P/E ratio and a 43% upside potential. Bosideng’s high-end urban line AREAL’s fall/winter products for Q1 2025 were launched in October 2025, with an average price exceeding 2,600 RMB and a sell-out rate over 95%, receiving high praise from the fashion industry and consumers. The second season spring/summer collection of AREAL was showcased in a pop-up at Hong Kong’s K11 MUSEA at the end of March 2026, not only demonstrating a new brand image but also exploring new global development opportunities amid the cultural fusion environment in Hong Kong.

CICC Key Points:

Bosideng’s collaboration with Kim Jones is a strategic brand upgrade breakthrough

Kim Jones, a top designer working with luxury brands such as LV, Dior, and Fendi, is a key representative of high-end and global aesthetic standards. The partnership with Jones to create AREAL has elevated Bosideng’s brand image from an expert in down apparel to an international high-end functional fashion brand. AREAL is not just a traditional designer collaboration but a comprehensive presentation involving product refinement, channel integration, and brand exposure. It signifies a shift from isolated event marketing to a systematic matrix approach. This move is expected to capture high-end consumer recognition, strengthen Bosideng’s leading position, and further elevate its brand stature.

AREAL pushes creative boundaries with new spring/summer product layout

The core of high-end branding is not just higher prices but creating new value. AREAL combines luxury craftsmanship and texture to deliver high perceived value to consumers, integrating functionality and aesthetics based on Bosideng’s 50 years of quality craftsmanship and Kim Jones’s fashion insight. With the core concept of “breaking boundaries, exploring infinite possibilities,” AREAL accurately identifies urban consumers’ diverse needs for high-quality living in various scenarios such as work and socializing. The experimentation and breakthroughs in the spring/summer product line bring more surprises and possibilities to the industry and consumers.

Channel expansion continues strongly, potentially helping Chinese brands go global

From its beginnings in North Bund, Shanghai, to its presence at Galeries Lafayette in Paris, and now the pop-up at Hong Kong’s K11 MUSEA, this development shows that AREAL is not only a channel breakthrough but also an important step in cultural export. Widespread recognition in the fashion industry and positioning in high-end retail channels enable Chinese brands to enter the mainstream international aesthetic discourse. This is a key move for the company to explore new global opportunities and further internationalize.

Risk warning: Retail environment underperforming expectations, weather uncertainties, raw material price fluctuations.