BofA Securities has issued a research report reaffirming its "Buy" rating on BOSIDENG (HKEX: 03998) with a target price of HK$4.6.

The bank expects BOSIDENG's revenue for the first half of the 2027 fiscal year to be flat year-on-year due to the timing of wholesale shipments, with net profit recording low single-digit growth, though it maintains its full-year earnings forecast.

The bank believes that the company's direct-operated channel execution remains resilient, and combined with inventory management and an attractive dividend yield of approximately 8%, it maintains a positive view on BOSIDENG.

The bank anticipates that Xuezhongfei will record double-digit growth, while the OEM business is expected to grow by 5% to 10%.

The group's gross profit margin may come under slight pressure due to increased discounts at Xuezhongfei and a less favorable business mix, but cost optimization should help offset the related impact.