CSC Financial has issued a research report maintaining a "Buy" rating on JNBY (03306), projecting the company's FY2027-FY2029 revenue at 6.44 billion, 6.83 billion, and 7.21 billion yuan respectively, with net profit attributable to shareholders of 1.068 billion, 1.141 billion, and 1.218 billion yuan.
The company released its fiscal year 2026 annual results announcement (corresponding to the period from July 1, 2025 to June 30, 2026): FY2026 revenue reached 6.046 billion yuan, up 9.0% year on year; operating profit and net profit attributable to shareholders were 1.334 billion yuan (+11.4%) and 997 million yuan (+11.7%) respectively. FY2026 net cash flow from operating activities was 1.433 billion yuan, up 26.5%. The company declared a final dividend of HK$1.06 per share and a special dividend of HK$0.75 per share. Together with the interim dividend of HK$0.52, the full-year dividend per share amounted to HK$2.33, corresponding to a payout ratio of approximately 110%.
CSC Financial's key observations are as follows.
FY26H2 Revenue Growth Accelerated, Driven by Online Channels and Offline Same-Store Sales; JNBY Grew Steadily While LESS Accelerated
FY2026 revenue was 6.046 billion yuan, up 9.0%, achieving steady growth despite pressure on the apparel industry. FY26H1 and FY26H2 revenue came in at 3.376 billion yuan (+7%) and 2.67 billion yuan (+11.6%) respectively.
By channel, FY2026 online, self-operated, and franchised store revenue was 1.448 billion yuan (+20.5%), 2.299 billion yuan (+10.7%), and 2.299 billion yuan (+1.3%) respectively. Corresponding FY2026H2 online, self-operated, and franchised store revenue was 695 million yuan (+16%), 1.118 billion yuan (+16.4%), and 857 million yuan (+3%). According to company disclosures, FY2026 comparable same-store sales at physical stores rose 2.4% year on year, achieving counter-trend growth amid pressure on foot traffic. As of the end of June 2026, the company operated 2,118 independent physical retail stores globally, a net increase of 1 store compared with the end of June 2025, including 501 self-operated stores (a net increase of 9 from 492 last year) and 1,617 franchised stores (a net decrease of 8 from 1,625 last year). The company maintained a rational pace of store expansion, focusing on channel quality and efficiency improvement, continuously optimizing store locations and closing underperforming outlets.
By brand, the company is a leading domestic designer apparel brand, precisely capturing the middle class's demand for artistic aesthetics in clothing. It deeply implements three major strategies driven by design, brand power, and fan loyalty, building a mature-plus-growth-plus-emerging multi-brand matrix. First, the mature brand (JNBY) is a designer brand focused on empowering the brand with original designs featuring artistic aesthetics. Its product design is distinctive and highly recognizable, serving as an important support for high fan loyalty. FY2026 revenue from the mature brand was 3.241 billion yuan, up 7.6%, accounting for 53.6% of revenue, maintaining steady growth resilience on a high base. FY26H2 revenue was 1.381 billion yuan, up 10.2%.
Second, the growth brand matrix (including CROQUIS, jnby by JNBY, and LESS brands) generated FY2026 revenue of 2.328 billion yuan, up 7.1%, accounting for 38.5% of revenue and serving as an important growth driver. Among these, FY26 revenue for CROQUIS, jnby by JNBY, and LESS was 712 million, 885 million, and 731 million yuan respectively, changing by -1.1%, +6.5%, and +18.6% year on year. FY26H2 revenue for CROQUIS, jnby by JNBY, and LESS was 322 million, 389 million, and 338 million yuan respectively, changing by -2.9%, +9.7%, and +17.4% year on year. All brands except CROQUIS visibly accelerated, while CROQUIS saw growth fall into decline on a sequential basis due to intense competition in its segment.
Third, FY2026 revenue from emerging brands was 478 million yuan, up 32.2%, accounting for 7.9% of revenue and becoming a new growth momentum. On the store front, as of the end of June 2026, the number of stores for JNBY, CROQUIS, jnby by JNBY, LESS, and emerging brands stood at 982, 283, 505, 271, and 55 respectively, changing by +21, -25, -8, +10, and +3 compared with the end of June 2025.
Profitability Continued to Improve on Channel Mix Changes and Discount Management, With Double-Digit Net Profit Growth in FY2026
FY2026 operating profit and net profit attributable to shareholders were 1.334 billion yuan (+11.4%) and 997 million yuan (+11.7%) respectively.
On gross margin, FY2026 gross margin was 66.6%, up 1.0 percentage point. Gross margins for JNBY, CROQUIS, jnby by JNBY, LESS, and emerging brands were 69.9%, 67.6%, 60.8%, 70.2%, and 48.8% respectively, changing by +1.3, +1.4, +2.9, +1.2, and -2.7 percentage points year on year. Gross margins for direct-operated, franchised, and online channels were 73.2%, 60.3%, and 66.4% respectively, changing by -0.7, +1.5, and +2.4 percentage points year on year. The gross margin improvement was mainly attributable to the core product competitiveness driven by design as well as the company's retail discount management strategy under a healthy merchandise management system.
On expense ratios, FY2026 selling and administrative expense ratios were 36.0% and 10.7% respectively, up 0.4 and 1.1 percentage points year on year. The rise in the selling expense ratio was mainly affected by changes in the channel revenue mix, while the increase in the administrative expense ratio was mainly due to higher spending by the product design and R&D departments.
On profit margins, FY2026 operating margin and net margin attributable to shareholders were 22.1% (+0.5 percentage point) and 16.5% (+0.4 percentage point) respectively.
Active Members and High-Value Users Further Expanded, With Sound Inventory Management
As of June 30, 2026, the company's annual active member accounts exceeded 610,000, up 9%. Among them, members with annual purchases exceeding 5,000 yuan numbered more than 360,000 (compared with 330,000 in the prior fiscal year), with retail sales reaching 5.20 billion yuan, up 7.0%, contributing over 60% of offline channel retail sales and serving as the core support for offline retail. Retail sales contributed by members accounted for more than 80% of total retail sales. The company continued to strengthen the connection between brands and consumers through data-driven and refined operations, achieving continuously deepened user loyalty.
The company's FY2026 net inventory was 910 million yuan, down 2.9%. Inventory turnover days stood at 166.3 days, an increase of 5.4 days from 160.9 days in the same period last year, remaining within a healthy range.
Risk Warnings
1) Risk of product strength falling short of expectations; 2) risk of intensifying industry competition; 3) risk of new brand growth falling short of expectations.
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