Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Bosideng- BosidengInternational HoldingsInternationalLimited (3998.HK)Holdings Limited

(3998.HK)Commitment to high dividend payout; developing new segments

PRICE TARGET HK$5.10 OVERWEIGHT THESIS

We apply 13x FY27e P/E as our target multiple, in line with its five-year historical average. The ▪Bosideng has committed to ~80%

future CAGR could be slower than it had previously been, and going forward might rely more dividend payout, and it has delivered

on product diversification instead of ASP. This implies 1.4x PEG, and 6% dividend yield is consecutive earnings growth since 2016. It is

attractive for a quality leader in China's consumer discretionary segment. a leader in China's down apparel market. It

has built a moat in brand equity, product HK$5.41

quality, channel management and pricing

Consensus Price Target Distribution HK$4.58 HK$6.27 power.

MS PT

believe Bosideng is on track for marketSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪We

share gain in the broader outerwear market,

through solidifying "down apparel expert"

mind share, continuous product

RISK REWARD CHART diversification, and channel expansion. In

particular, the efforts in premium segments -

Areal and Vertex - would pay off.

HKD HK$6.70HK$6.70(+77.25%)HK$6.70(+77.25%)(+77.25%) ▪We forecast 6% sales and 9% earnings

CAGRs over F26-28. Our price target is

6 based on 13x FY27e P/E, implying an

attractive dividend yield of 6%.

HK$5.10HK$5.10(+34.92%)HK$5.10(+34.92%)(+34.92%)

4.5 Consensus Rating Distribution

HK$3.78HK$3.78HK$3.78

100%Overweight

3 0% Equal-weight

HK$3.20HK$3.20(-15.34%)HK$3.20(-15.34%)(-15.34%)

0% Underweight

1.5 MS Rating

Source: Refinitiv, Morgan Stanley Research

JUN '25 DEC '25 JUN '26 JUN '27 Risk Reward Themes