HSBC Research: BOSIDENG lowers revenue forecast due to warm winter, target price reduced to 5.7 yuan

HSBC Global Research published a report indicating that the warmer-than-expected winter has hindered Bosideng (03998.HK) from achieving its growth targets for the fiscal year 2026. The bank now expects the group's revenue for the fiscal year 2026 to grow by 4%, down from the previous forecast of 10%; revenue from the Bosideng brand is expected to grow by 6% year-on-year, lower than the previous forecast of 14%.

In its recent interim results, management aimed for a 10% growth in group revenue, with the Bosideng brand expected to grow even faster in the fiscal year 2026. After lowering its revenue forecast by 5.5%, the bank also reduced its forecast for net profit in fiscal year 2026 by 9%. It now expects net profit for fiscal year 2026 to grow by 6% year-on-year based on a 4% revenue growth, which is 5% lower than the market consensus for net profit and 5% lower for revenue.

HSBC Research maintains a "Buy" rating on Bosideng, lowering the target price from HKD 6.1 to HKD 5.7