According to a research report released by Guosheng Securities Inc., the firm estimates that JNBY (HKEX: 03306) will record total revenue of RMB 6.47 billion, RMB 6.88 billion, and RMB 7.29 billion in FY2027-FY2029, representing year-on-year growth of 7%, 6%, and 6%, respectively, while net profit attributable to shareholders is projected at RMB 1.07 billion, RMB 1.15 billion, and RMB 1.23 billion, up 8%, 7%, and 7% year on year. Based on the share price as of September 25, 2026, the stock trades at 9.3 times FY2027 PE. The brokerage considers a reasonable price range of HKD 25.4 to HKD 27.2 per share, corresponding to 10.8 to 11.6 times FY2027 PE, implying 16% to 24% upside, and initiates coverage with a "Buy" rating. In the view of the brokerage, the company is a mid-to-high-end womenswear group with a distinctive brand identity and attractive dividends, and its future dividend payout ratio is expected to remain above 70%, corresponding to a FY2027 dividend yield of over 7%.
The main points of the Guosheng Securities Inc. report are as follows. The company is a mid-to-high-end apparel brand group with excellent profitability and sustained high-quality growth.
1) The company owns multiple designer brands, historically centered on the main JNBY brand, supplemented by CROQUIS, jnby by JNBY, and LESS, with a differentiated layout across the mid-to-high-end menswear and womenswear segments, driving continuous business expansion through store network growth and store efficiency improvement. At the end of FY2026, the group operated more than 2,000 stores in total.
2) In terms of financial performance, the company's revenue reached RMB 6.05 billion in FY2026, up 9.0% year on year, while net profit attributable to shareholders reached RMB 1.0 billion, up 11.7% year on year, marking the fourth consecutive year in which profit growth outpaced revenue growth and continuing to demonstrate high-quality growth. Gross margin and net margin stood at 66.6% and 16.5%, respectively, reflecting outstanding profitability.
The main brand advances steadily, LESS grows rapidly, and the differentiated layout of other brands is clear. The company owns multiple designer brands with differentiated positioning that balance artistry and commercial viability, forming a unique competitive advantage. In FY2026, revenue from JNBY, CROQUIS, jnby by JNBY (childrenswear), and LESS reached RMB 3.24 billion, RMB 710 million, RMB 880 million, and RMB 730 million, respectively, up 8%, down 1%, up 7%, and up 17% year on year, accounting for 54%, 12%, 15%, and 12% of sales, with gross margins of 69.9%, 67.6%, 60.8%, and 70.2%, respectively, and 982, 283, 505, and 271 stores at period end.
1) The main JNBY brand targets urban middle-class women aged 25 to 40. Drawing artistic inspiration from nature, it extensively uses high-quality natural fabrics and natural color palettes, emphasizes three-dimensional design and tailoring, and retains artistic design while enhancing product applicability and mass purchasability.
2) LESS targets middle-class women in first- and second-tier workplace settings, with a more focused customer profile, emphasizing minimalism and high quality. Driven by the popular "quiet luxury" trend and rising brand power, its business scale has grown rapidly.
3) jnby by JNBY is a childrenswear brand that continues the artistic DNA of the main brand, capturing parent-child consumption scenarios.
4) CROQUIS is the company's only successfully incubated menswear brand, with a stable business scale, a niche customer base, and high loyalty.
Directly operated stores focus on brand reach, franchised stores expand steadily with high quality, and e-commerce grows rapidly. At present, the proportion of directly operated and franchised stores is basically balanced, and these channels are the company's core revenue contributors, while e-commerce has basically maintained double-digit growth for many years, with its channel share continuing to rise to more than 20%. In FY2026, sales revenue from self-operated stores, franchise stores, and online channels reached RMB 2.30 billion, RMB 2.30 billion, and RMB 1.45 billion, respectively, up 11%, up 1%, and up 21% year on year, accounting for 38%, 38%, and 24%, respectively.
1) Compared with other mid-to-high-end brands, the company has high penetration in lower-tier markets, with business mainly concentrated in East China. In FY2026, retail sales from first-tier to fourth-tier and other cities accounted for 13.9%, 38.4%, 28.6%, and 19.1%, respectively (nearly 50% of retail sales came from third- and fourth-tier cities and below), while store counts accounted for 11%, 33%, 32%, and 24%, respectively.
2) In terms of channel numbers, at the end of FY2026 the company had 500 self-operated stores and 1,600 franchised stores (compared with 539 and 1,284, respectively, in FY2020). The brokerage believes that the scale of directly operated stores has remained broadly stable, with a focus on consumer reach and brand maintenance, while the number of franchised channels has expanded steadily, driving high-quality growth across the company's overall business.
The membership system is mature, customer loyalty is strong, and active members contribute more than 80% of retail sales. The company transforms apparel purchases into an integrated lifestyle expression and strengthens customer loyalty through meticulous member maintenance and deep brand philosophy.
1) Brands under the group enjoy strong customer loyalty, with members contributing a high proportion of sales. At the end of FY2026, the group had more than 610,000 active members (compared with more than 420,000 in FY2022), contributing more than 80% of retail sales. Among them, the number of core members who purchased more than RMB 5,000 annually exceeded 360,000 (compared with more than 210,000 in FY2022), with average retail sales reaching RMB 14,000.
2) The brokerage believes that this high customer loyalty stems from recognition of product quality and brand identity. At the same time, the company's differentiated brand matrix allows a single customer to move between different brands, satisfying multi-scenario needs including personal dressing, parent-child and partner consumption, and home life.
Performance grows with high quality, and the dividend yield is attractive.
1) In terms of profitability, the brokerage estimates that the company's total revenue in FY2027-FY2029 will be RMB 6.47 billion, RMB 6.88 billion, and RMB 7.29 billion, up 7%, 6%, and 6% year on year, respectively, while net profit attributable to shareholders is expected to be RMB 1.07 billion, RMB 1.15 billion, and RMB 1.23 billion, up 8%, 7%, and 7% year on year, respectively, with overall profit growth slightly faster than revenue.
2) In terms of dividends, the company has maintained a payout ratio above 70% in the past, with special dividends implemented in certain years. From FY2021 to FY2026, the dividend payout ratios were 99%, 79%, 73%, 95%, 73%, and 108%, respectively. Considering the company's mature business scale, solid profitability, and sound operating stability, the brokerage expects the future dividend payout ratio to remain above 70%, corresponding to a FY2027 dividend yield of over 7%.
Risk warnings include volatility in the consumption environment, channel performance falling short of expectations, and brand management falling short of expectations.
Comments