Citigroup has issued a research report largely maintaining its profit forecasts for JNBY while increasing the target price from HK$20.80 to HK$22.50. The bank views the company's valuation as attractive, with a dividend yield of approximately 8% considered ideal, and reiterates a "Buy" rating. JNBY's financial results for the first half of the 2026 fiscal year, ending last December, were in line with expectations. Revenue and net profit increased by 7% and 12% year-on-year, reaching RMB 3.38 billion and RMB 674 million, respectively. Despite challenges in the macroeconomic environment, management has maintained its targets for the 2026 fiscal year, including gross merchandise volume of RMB 10 billion, revenue of RMB 6 billion, gross and net profit margins exceeding 65% and 15% respectively, and a dividend payout ratio above 75%. Despite unseasonably warm winter weather, same-store sales growth turned positive for the period from last July to February this year. The company continues to enhance member operations, brand value, and digitalization to drive growth. In 2025, the number of active members and annual spending per member, exceeding RMB 5,000, both reached record highs.
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