Auntea Jenny Interim Results: Profit Up 58.3% on Robust Franchise Expansion and Stable Margins

Bulletin Express07-31

Auntea Jenny reported strong interim results for the six months to 30 June 2026, driven by rapid network expansion and resilient consumer demand.

Revenue and Margin • Revenue rose 42.4% year-on-year to RMB 2.59 billion, supported mainly by ingredient and equipment sales to franchisees. • Gross profit increased 43.2% to RMB 818.34 million, keeping the gross margin steady at 31.6%. • Selling and marketing expenses grew 56.1% to RMB 293.21 million, reflecting higher brand-building outlays, while administrative costs remained broadly flat at RMB 95.11 million. • R&D spending expanded 35.5% to RMB 33.63 million as the company pushed product innovation.

Earnings • Profit for the period surged 58.3% to RMB 321.23 million; adjusted profit (excluding share-based payments) rose 41.6% to RMB 345.09 million. • Basic and diluted EPS climbed to RMB 3.05 from RMB 1.97. • Adjusted net margin held stable at 13.33% (2025: 13.40%).

Cash Flow and Balance Sheet • Operating cash flow reached RMB 287.30 million (2025: RMB 223.20 million). • Cash and cash equivalents stood at RMB 1.38 billion, with total interest-bearing debt of RMB 18.60 million. • The gearing ratio moderated to 34.2% from 35.4% at year-end 2025.

Store Network and Operations • Total stores expanded to 13,155 (35 self-operated, 13,120 franchised), up from 9,436 a year earlier. • Third- and lower-tier cities accounted for 53.4% of outlets, underscoring the brand’s lower-tier market focus. • Overseas presence reached 61 stores across the UK, Australia and Indonesia.

Dividends • The board declared an interim dividend of RMB 2.00 per share (RMB 20 per ten shares), amounting to approximately RMB 210.41 million, payable on 29 September 2026.

Capital Allocation • As at period-end, unutilised IPO proceeds totaled HKD 43.60 million, earmarked mainly for R&D and supply-chain upgrades by December 2027. • Capital commitments rose to RMB 46.10 million, focused on business-system development, equipment purchases and fund investments.

Outlook (Company Guidance) Management targets continued “high-quality and orderly” franchise expansion, deeper tea–coffee product integration and further supply-chain optimisation, while sustaining digital investments to enhance operational efficiency and food-safety control.

No material acquisitions, disposals or pledges of assets were reported during the period. The company completed H-share full circulation on 23 July 2026, adding 35.26 million converted H-shares to the market.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment