Bosideng International (3998) H1 24/25 earnings summary

Executive summary

• Revenue for the six months ended Sep 30, 2024, rose 17.8% year-over-year to RMB 8,804.1 million, with profit attributable to equity shareholders up 23.0% to RMB 1,129.7 million.

• Branded down apparel led growth, contributing 68.9% of total revenue and rising 22.7% year-over-year, while ladieswear revenue and profitability declined.

• Operating profit margin improved to 16.7%, especially when excluding the ladieswear segment.

• Interim dividend of HKD6.0 cents per share declared.

• The group focused on product innovation, digital transformation, and channel optimization to drive high-quality growth.

Financial highlights

• Gross profit increased 17.6% year-over-year to RMB 4,391.3 million; group gross margin stable at 49.9%.

• Operating profit rose 19.6% to RMB 1,471.8 million; basic EPS increased 22.3% to 10.35 RMB cents; diluted EPS up 21.3% to 10.13 RMB cents.

• Net cash as of Sep 30, 2024, was RMB 6,413.2 million, with cash and cash equivalents at RMB 1,962.7 million.

• Gearing ratio increased to 20.4% from 18.0% at March 31, 2024.

• Inventory turnover days increased to 189, up 29 days year-over-year.

Outlook and guidance

• Plans to strengthen core down apparel business, focus on technological innovation, and enhance sales channel operations.

• OEM business to deepen client relationships, expand production in Southeast Asia, and enhance ODM capabilities.

• Ladieswear business to prioritize operational improvements and sustainable growth, with limited new investment and strategic resource allocation.