Analysts at Goldman Sachs have reaffirmed their "Buy" rating on Bosideng (03998) and increased their 12-month price target to HK$5.3, up from HK$5.1, based on a 13 times forward price-to-earnings ratio for the 2027 fiscal year.

The firm highlighted that Bosideng reported robust performance for the second half of the 2026 fiscal year, surpassing market expectations.

Management's commentary regarding the autumn/winter ordering meeting and the full-year outlook was viewed as slightly more positive than anticipated, standing out against a backdrop where many other sportswear companies are facing a demand slowdown.

During an analyst briefing, management noted a significant improvement in growth momentum for the autumn/winter ordering meeting, with more innovation evident in product design, technology, and category positioning.

The company's high-end stores and Areal series have already delivered notable results, and there are plans to translate this strong momentum into improved store-level operational efficiency in the coming years.

Goldman Sachs further pointed out that the group anticipates its overall gross margin for the 2027 fiscal year will remain relatively stable, with stricter discount management expected to support margins for the down jacket segment.

Additionally, benefiting from the construction of overseas production capacity, management expressed confidence in the OEM business returning to growth exceeding 10%.

Due to improved revenue from the core Bosideng brand and the OEM business, coupled with better sales and administrative expense ratios, Goldman Sachs has raised its net profit forecasts for Bosideng for the 2027 and 2028 fiscal years by 7% to 8%.

The firm believes that, despite macroeconomic fluctuations, Bosideng has a healthy growth outlook, supported by a high single-digit dividend yield.