The Zhitong Finance App learned that Guosheng Securities released a research report saying that the total operating revenue of Jiangnan Puyi (03306) FY2027-2029 is expected to be 64.7/68.8/7.29 billion yuan, up 7%/6% year on year, respectively. The estimated net profit to mother is 10.7/11.5/1.23 billion yuan, up 8%/7% year on year; as of September 25, 2026, the corresponding FY2027 PE is 9.3 times. It is believed that the company's reasonable stock price range is HK$25.4 to 27.2, corresponding to FY2027 PE 10.811.6 times, with 16% to 24% of space, for the first time, giving it a “buy” rating; the bank believes that the company is a high-end women's clothing group with a unique brand tone and attractive dividends. The dividend payment rate is expected to remain above 70% in the future, corresponding to the FY2027 dividend rate of 7% +.
Guosheng Securities's main views are as follows:
The company is a high-end clothing brand group with excellent profitability and continuous high-quality growth
1) The company has a number of designer brands. In the past, the main brand JNBY was the core, and the sketch, jnby by JNBY, and LESS brands were used as an aid to differentiate the layout of high-end men's and women's clothing tracks. Through store expansion and improved store efficiency, the business scale continued to expand. At the end of the FY2026 period, the total number of Group stores exceeded 2,000. 2) In terms of financial performance: FY2026's revenue reached 6.05 billion yuan, up 9.0% year on year; net profit to mother reached 1.0 billion yuan, up 11.7% year on year. The profit growth rate was faster than revenue growth for four consecutive years, and continued to show high-quality growth; gross margin/net margin reached 66.6%/16.5% respectively, with excellent profitability.
The main brand is stable and stable, the LESS brand is growing rapidly, and the differentiated layout of other brands is clear
The company has a number of designer brands with differentiated positions, which balance art and commerciality to form a unique competitive advantage. The FY2026 JNBY/Sketch/JNBY by JNBY (children's wear) /LESS brand revenue was 32.4/7.1/8.8/7.3 billion yuan respectively, +8%/-1%/+7%/+17% year-on-year, with sales accounting for 54%/12%/15%/12%, respectively, gross margins of 69.9%/67.6%/60.8%/70.2%, respectively. At the end of the period, there were 982/283/505/271 stores respectively. 1) JNBY's main brand targets middle-class urban women between the ages of 25 and 40, using nature as artistic inspiration, using a wide range of high-quality natural fabrics and natural colors, emphasizing three-dimensional design and tailoring to preserve artistic design while increasing product applicability and public purchasability; 2) LESS targets women in first-tier and second-tier workplaces. The customer profile is more focused, emphasizes minimalism and high quality. Driven by the “quiet luxury style” trend and increased brand power, the business scale is growing rapidly; 3) jnby by JNBY is a children's clothing brand that continues the artistic genes of the main brand and grasps the artistic genes of the main brand. Family scene consumption; 4) Sketch is the only mature menswear brand under the company. The business scale is steady, the customer base is small, and the stickiness is high.
Direct management focuses on brand reach, high quality franchise, steady expansion, and rapid e-commerce growth
Currently, the proportion of direct-run and franchise stores is basically balanced, contributing to the company's core revenue; e-commerce has basically maintained double-digit growth over the past few years, and the share of channels has continued to rise to more than 20%. FY2026 self-operated store/dealer/online channel sales revenue was 23.0/23.0/1.45 billion yuan respectively, +11%/+1%/+21% year-on-year, accounting for 38%/38%/24%, respectively. 1) Compared with other high-end brands, the company's sinking market penetration rate is high, and its business is mainly in East China. Retail sales in first-tier to fourth-tier FY2026 and other cities accounted for 13.9%/38.4%/28.6%/19.1% respectively (nearly 50% of retail sales come from third- and fourth-tier cities and below), and the number of stores accounted for 11%/33%/32%/24%, respectively. 2) Judging from the number of channels, the number of the company's own/dealer stores at the end of the FY2026 period was 500/1,600 (539/1284 in FY2020, respectively). The bank believes that the overall scale of direct-run stores is stable, focuses on consumer reach and brand maintenance, and the number of franchise channels is steadily expanding, driving the high-quality growth of the company's overall business.
The membership system is mature, the customer base is highly sticky, and active members contribute more than 80% of retail sales
The company transforms clothing consumption and purchases into an integrated lifestyle expression, and strengthens customer base stickiness with meticulous membership maintenance and a deep brand concept. 1) The Group's brands have a strong customer base and a high proportion of member contributions. At the end of the FY2026 period, the number of active members of the company group exceeded 610,000 (more than 420,000 in FY2022), accounting for more than 80% of retail sales. Among them, the number of core members who purchased more than 5,000 yuan a year exceeded 360,000 yuan (FY2022 was more than 210,000), and the average retail sales reached 14,000. 2) The bank believes that the high stickiness of the customer base comes from recognition of product quality and brand tone. At the same time, the company differentiates the brand matrix, so that a single customer can move between different brands to meet the needs of various scenarios such as personal clothing, parent-child and partner consumption, and home life.
High quality growth in performance, attractive dividend ratio
1) Profit side: The bank expects the company's total revenue for FY2027-2029 to be 64.7/68.8/7.29 billion yuan, up 7%/6% year on year; net profit to mother is 10.7/11.5/1.23 billion yuan, respectively, up 8%/7%/7% year on year, respectively. The overall profit growth rate is slightly faster than revenue. 2) In terms of dividends: In the past, the company maintained a dividend ratio of 70% or more, and implemented special dividends in some years. The dividend payment rates for FY2021-2026 were 99%/79%/73%/95%/73%/108%, respectively. Considering the company's mature business scale, solid profitability, and stable operation, the bank expects the company's dividend payment ratio to remain above 70% in the future, corresponding to the FY2027 dividend rate of 7% +.
Risk Alerts
Risk of fluctuations in the consumer environment; channel performance falls short of expectations; brand management falls short of expectations.