Bosideng International big show blockbuster launch, the new autumn down opened the peak season sales curtain. On the evening of September 21, Bosideng International held a light down jacket show in Shanghai, and many star guests came to the scene wearing the new light down jacket to amplify the brand publicity. On September 20, the official announced that the top skiing champion Gu Ailing was the spokesman, which received wide attention. Gu Ailing's top professional strength was highly consistent with Bosideng International's innovative spirit and down jacket expert positioning, and successfully interpreted the concept of "redefining lightweight down jacket". At the end of October, the official spokesman will be announced and the second big show will be held, and the world's first experience store will be opened on Nanjing West Road in Shanghai. The peak season is approaching and the marketing end is making intensive efforts, laying a strong foundation for sales in the second half of the year.

Redefine light and thin down jacket, product innovation once again leads the industry breakthrough. This season, new down products have made innovative breakthroughs in design and craftsmanship. Since August, new lightweight down jackets have been unveiled one after another, including high-end light warmth and urban elegant series, with prices set at 599,999yuan and 1299-1599 yuan respectively. Covering small fragrance down jacket, down jacket and so on. This big show, once again launched an innovative lightweight down jacket, priced at 1000-2000 yuan, launched sweater down jacket, knitted down jacket and other new products. The new generation of lightweight down jacket adopts "five major light and warm technologies", featuring high-canopy loose high-quality goose down, a 70% increase in heat preservation performance and an 18% reduction in fabric, combining the quilting technology of Marseille in France and the splicing technology of the Tang Dynasty in China. The product is refreshing in appearance and won the gold award of the top ten design innovations in the world before it came on the market.

Strategic transformation and upgrading have continued to advance, and multi-dimensional efforts have been made to consolidate the leading position. FY23 fiscal year is the second year of Bosideng International's new three-year plan, the company continues to make efforts in marketing and channels to achieve sustained and steady performance growth targets. In terms of channels, we will continue to optimize the offline channel structure, close small stores and inefficient distribution stores, and expect to open 300 high-quality large area stores, increase the coverage of low-line cities, and give excellent dealers more decoration and rebate support. October is expected to officially open the first Nanjing West Road experience store, comprehensively optimize user experience and drive performance growth with high-quality stores. The online layout of multi-platform development, the establishment of Douyin independent division, in the traditional platform traffic saturation to actively develop the second growth curve, from April to August Douyin doubled year-on-year growth. In terms of operation, we will continue to optimize the efficiency of internal management, strengthen digital construction and integrated management of omni-channel commodities, strengthen cost control on the basis of ensuring brand innovation and marketing efforts, and increase revenue and reduce expenditure. It is expected that there will be a decline in brand investment, store rent, decoration and labor cost modules.

The old stock placement clarifies the shareholding structure, and the stock price callback has a high performance-to-price ratio. Bosideng International issued an announcement on September 1 that controlling shareholder Yingxin International sold 230 million shares at HK $3.94 per share to redeem Itochu's preferred shares and pay dividends on preferred shares. After the sale, Yingxin International's shareholding ratio was reduced to 33.2%. Affected by the old stock sale, the stock price has fluctuated, we believe that this incident is mainly due to the expiration of the cooperation between the company and Itochu, the two sides reached a consensus not to cooperate in the form of preferred shares and to redeem preferred shares in order to clarify the equity relationship. After the redemption transaction is completed this year, Gao Dekang Family Trust will hold 100% of Yingxin shares. This incident will not have a substantial impact on the operational level, the company's fundamentals continue to be upward, the pace of new product release is smooth, and the marketing promotion before the arrival of the peak season is superimposed. It is expected that the full-year performance growth will still have a strong certainty. After the current stock price correction, the valuation already has a high performance-to-price ratio.

The company is a leader in the down jacket industry, with its profound industry accumulation and efficient organizational change ability to broaden the moat from the product, marketing, channel, operation and other aspects to maintain the "buy" rating. The company's main business is basically stable, has established a strong consumer awareness in the field of down jacket, multi-business lines go hand in hand, outdoor ice and snow track is expected to contribute to the increase in the medium and long term. Maintain 22-24 profit forecast, expected to return to the mother of 100 million yuan in 25-30-35, respectively, corresponding to PE times 16-13-11, maintaining the "buy" rating.

Risk tips: the performance of new products is not as expected; the risk of channel inventory; the risk of market competition; the impact of the epidemic on consumption recovery is not as expected.