Core Viewpoint - The report from CICC indicates that Jiangnan Buyi achieved a revenue of 5.55 billion yuan for the fiscal year ending June 2025, representing a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 890 million yuan, up 5.3%, aligning with expectations [1] Group 1: Financial Performance - Jiangnan Buyi's revenue for the fiscal year ending June 2025 reached 5.55 billion yuan, marking a 4.6% increase year-on-year [1] - The company's net profit attributable to shareholders was 890 million yuan, reflecting a year-on-year growth of 5.3% [1] Group 2: Future Outlook - The company reiterated its retail target of 10 billion yuan for the fiscal year 2026 [1] - CICC anticipates that the company's terminal cash flow in July and August will outperform peers, driven by strong member loyalty and multi-brand cultivation capabilities [1] Group 3: Strategic Initiatives - Jiangnan Buyi plans to establish its own logistics center, which is expected to reduce financial income net of capital occupation, leading to a faster revenue growth rate compared to profit growth in fiscal year 2026 [1] Group 4: Valuation and Rating - CICC raised the target price for Jiangnan Buyi by 18% to 23.7 HKD, corresponding to a price-to-earnings ratio of 12 times for this year and 11.6 times for next year, indicating a 19% upside potential from the current price [1] - The rating of "outperforming the industry" is maintained [1]

Summary of Jiangnan Buyi Conference Call Company Overview - **Company**: Jiangnan Buyi - **Industry**: Fashion Retail Key Points Business Strategy - Jiangnan Buyi maintains a high dividend policy with a payout ratio of 75% [2][3] - The company operates on three core strategies: dual-driven design and branding, multi-brand scaling, and a high-engagement fan economy [2][4] - The gross margin for the fiscal year remains above 65%, with discounts narrowing by 2-3 percentage points [2][4] Financial Performance - For the fiscal year 2025, revenue exceeded 5.5 billion RMB, a year-on-year increase of 4.6%, while profit approached 900 million RMB, growing by 6% [3][4] - The company aims for a retail revenue target of 10 billion RMB by fiscal year 2026, with mature brand JNBY expected to grow in low to mid-single digits [6][4] - Growth brands are projected to achieve double-digit growth, while emerging brands focus on product refinement [6][4] Sales and Inventory Management - Strong sales performance in July and August, with high single-digit growth in July and over 10% growth in August [7][4] - Inventory increase attributed to business growth support and new brand acquisitions, with a future healthy inventory turnover expected to be between 150-200 days [7][8] - The company manages excess inventory through strict discount controls and channels for clearing out-of-season products [7][4] Membership and Customer Engagement - The number of high-value members (annual spending over 5,000 RMB) exceeded 337,000, contributing nearly 4.9 billion RMB in retail sales [5][4] - The company emphasizes maintaining core high-value members while also attracting new members through rich benefits and highly customized services [12][4] - A fan-centric operational system is established to enhance member loyalty and engagement [10][11] New Brand Development - The newly acquired brand On My Game saw a growth rate of approximately 70% and plans to open physical stores in Beijing and Hangzhou in fiscal year 2026 [13][4] - Another acquisition, Block, experienced nearly 50% growth, with a cautious approach to store expansion due to high space requirements [13][4] Future Outlook and Challenges - Despite a complex environment, the company achieved stable growth, with highlights including stable gross margins and active member growth [14][4] - Key future investments include the construction of a logistics center, with an estimated investment of 280 million RMB for land acquisition [14][4] - The company plans to maintain a dividend payout ratio of 75% despite ongoing investments [22][4] Online and Offline Sales Performance - Online sales surpassed 20% of total sales in fiscal year 2025, driven by the performance of On My Game [15][4] - Future online and offline sales ratios will be adjusted based on brand development stages [15][4] Pricing and ASP Trends - The average selling price (ASP) increased from 2,130 RMB to approximately 2,200 RMB in fiscal year 2025 [17][4] - High-value customers demonstrate strong purchasing power, with total spending nearing 4.9 billion RMB [17][4] AI and Technology Integration - The company has made systematic progress in AI applications across various operational aspects, enhancing efficiency and decision-making [18][19][4] Shareholder Returns - The company engages in annual share buybacks for employee stock incentives, maintaining a generous dividend policy [23][24][4] Market Position - Jiangnan Buyi's performance is noted as exceptional among apparel companies, with attractive dividend yields amidst market fluctuations [24][4]

Core Viewpoint - The company reported FY25 results that met expectations, with revenue of 5.55 billion yuan and a net profit of 890 million yuan, reflecting year-on-year growth of 4.6% and 5.3% respectively [1][2] Financial Performance - The company declared a final dividend of 0.93 HKD per share, alongside an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [1] - FY25 gross margin decreased by 0.3 percentage points to 65.6%, primarily due to an increase in revenue contribution from distribution and online channels [2] - FY25 net profit margin increased by 0.1 percentage points to 16.1% [2] Membership and Sales Channels - The number of high-value members (those with purchases exceeding 5,000 yuan) increased by approximately 20,000 to over 330,000 [1] - Revenue from direct sales, distribution, and e-commerce channels for FY25 was 2.08 billion, 2.27 billion, and 1.20 billion yuan respectively, with year-on-year changes of -6%, +10%, and +18% [1] - The company reduced its direct store count by 24 to 492, while increasing its distribution stores by 116 to 1,625 [1] Brand Performance - Revenue from the JNBY, jnby by JNBY, LESS, and Su Xie brands for FY25 was 3.01 billion, 830 million, 620 million, and 720 million yuan respectively, with year-on-year changes of +2.3%, +2.9%, +0.2%, and -4.6% [1] - New emerging brands saw a revenue increase of 107.4% to 360 million yuan, driven by the consolidation of newly acquired brands onmygame and B1OCK [1] Future Outlook - The company reiterated its goal of achieving 10 billion yuan in retail sales for FY26, with expectations of better terminal sales performance compared to peers [2] - Plans to establish a logistics center are anticipated to reduce capital occupation and improve financial returns, leading to faster revenue growth than profit growth in FY26 [2] Earnings Forecast and Valuation - The FY26 profit forecast is maintained at 926 million yuan, with an introduction of FY27 profit forecast at 983 million yuan [2] - The current stock price corresponds to 10.1 and 9.7 times FY25 and FY26 price-to-earnings ratios, with an 18% increase in target price to 23.70 HKD, implying a 19% upside potential [2]

Core Viewpoint - The clothing industry in 2025 is experiencing a dichotomy, with outdoor sports brands thriving while traditional fashion apparel faces significant challenges. Jiangnan Buyi has reported a unique performance amidst this landscape, showcasing growth in revenue and net profit despite industry headwinds [2][3]. Financial Performance - Jiangnan Buyi's revenue for the fiscal year ending June 30, 2025, increased by 4.6% to 5.548 billion yuan, with net profit rising by 6.0% to 898 million yuan. The gross margin remained high at 65.6%, indicating strong brand premium and cost control capabilities [2][3]. - The mature brand JNBY saw a revenue increase of 2.3% to 3.013 billion yuan, accounting for 54.3% of total revenue. The growth brand segment experienced a slight decline of 0.5% to 2.174 billion yuan, representing 39.2% of total revenue. Newly acquired emerging brands reported a remarkable revenue increase of 107.4% to 361 million yuan, rising from 3.3% to 6.5% of total revenue [2][3]. Membership System - Jiangnan Buyi's core membership system is a key driver of high-quality growth, contributing over 80% of total retail sales. Active membership accounts increased to over 560,000, with those spending over 5,000 yuan exceeding 330,000 [3][6]. - The retail sales from members reached 4.86 billion yuan, contributing over 60% of offline retail sales [3]. Strategic Direction - The company aims to achieve a sales target of 10 billion yuan by 2026, aligning with its strategic planning despite the changing industry landscape [3][4]. - Jiangnan Buyi plans to continue optimizing its designer brand and product mix through self-incubation and acquisitions, enhancing design and R&D capabilities [3][4]. Channel Expansion - As of June 30, 2025, Jiangnan Buyi operated 2,117 independent retail stores globally, up from 2,025 the previous year, with the majority located in mainland China, Hong Kong, and Taiwan [4]. - The company has successfully established 22 multi-brand collection stores to increase brand exposure and provide more growth services [5]. Inventory Management - Inventory increased by 24.2% to 932.6 million yuan, attributed to supporting business growth and increased new product stocking, as well as the impact of last year's warm winter on sales [13][14]. Future Growth Engines - The company anticipates that the primary growth drivers over the next three years will stem from existing brands, particularly emerging brands, while maintaining a cautious approach to acquisitions [16][17].

Core Viewpoint - CICC maintains the FY26 profit forecast for Jiangnan Buyi (03306) at 926 million yuan and introduces the FY27 profit forecast at 983 million yuan, with the current stock price corresponding to 10.1/9.7 times FY25/26 P/E ratio, maintaining an outperform rating for the industry [1] Financial Performance - The company reported FY25 (July 2024 - June 2025) performance: revenue of 5.55 billion yuan, up 4.6% year-on-year; net profit attributable to shareholders of 890 million yuan, up 5.3% year-on-year, in line with CICC's expectations [2] - The company declared a final dividend of 0.93 HKD per share, along with an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [2] Membership and Brand Growth - The number of members with total purchases exceeding 5,000 yuan increased by about 20,000 to over 330,000 in FY25. Revenue from direct sales, distribution, and e-commerce channels grew by -6%/+10%/+18% to 2.08 billion, 2.27 billion, and 1.20 billion yuan respectively, with strong growth in online sales driven by onmygame [3] - The number of direct stores decreased by 24 to 492, while the number of distribution stores increased by 116 to 1,625, as the company converted some non-core city direct stores to distribution [3] - Revenue from brands JNBY, jnby by JNBY, LESS, and Su Xie grew by 2.3%/2.9%/0.2%/-4.6% to 3.01 billion, 830 million, 620 million, and 720 million yuan respectively, while revenue from emerging brands surged by 107.4% to 360 million yuan, mainly due to the consolidation and rapid growth of newly acquired brands onmygame and B1OCK [3] Profitability and Inventory Management - FY25 gross margin decreased by 0.3 percentage points to 65.6%, mainly due to the increased proportion of revenue from distribution and online channels [4] - FY25 selling expense ratio increased by 0.6 percentage points to 35.6%, primarily due to increased brand investment and expenses related to the 30th anniversary activities; management expense ratio rose by 0.1 percentage points to 9.6% [4] - The effective tax rate for FY25 decreased by 3.8 percentage points to 26.3%, mainly due to reduced withholding tax on dividends; overall, the net profit margin attributable to shareholders increased by 0.1 percentage points to 16.1% [4] - The inventory turnover days at the end of FY25 increased by 5 days to 161 days, mainly due to increased inventory and stocking for the 2024 autumn and winter seasons [4] Development Trends - The company reiterated its target of 10 billion yuan in retail sales for FY26, with expectations of better terminal sales in July-August compared to peers, driven by strong member loyalty and multi-brand cultivation capabilities [5] - The company plans to build its own logistics center, which is expected to reduce capital occupation and improve financial income net, leading to faster revenue growth than profit growth in FY26 [5]

Core Viewpoint - The report from CICC maintains the FY26 profit forecast for Jiangnan Buyi (03306) at 926 million yuan and introduces the FY27 profit forecast at 983 million yuan, with the current stock price corresponding to 10.1/9.7 times FY25/26 P/E ratio, maintaining an outperform rating for the industry [1] Group 1: Financial Performance - The company's FY25 (July 2024 - June 2025) performance met CICC's expectations, with revenue of 5.55 billion yuan, a year-on-year increase of 4.6%, and a net profit attributable to shareholders of 890 million yuan, up 5.3% year-on-year [2] - The company declared a final dividend of 0.93 HKD per share, along with an interim dividend of 0.45 HKD per share, resulting in an annual payout ratio of approximately 75% [2] Group 2: Membership and Brand Growth - The number of member accounts with total purchases exceeding 5,000 yuan increased by about 20,000 to over 330,000 in FY25 [3] - Revenue from direct sales, distribution, and e-commerce channels in FY25 showed a year-on-year change of -6%, +10%, and +18%, respectively, with online sales benefiting from strong growth in the onmygame brand [3] - The company reduced its direct stores by 24 to 492, while increasing distribution stores by 116 to 1,625, converting some non-core city direct stores to distribution [3] - Revenue from the JNBY, jnby by JNBY, LESS, and Su Xie brands in FY25 showed year-on-year changes of +2.3%, +2.9%, +0.2%, and -4.6%, respectively, while new brands' revenue increased by 107.4% to 360 million yuan, mainly due to the consolidation and rapid growth of newly acquired brands onmygame and B1OCK [3] Group 3: Profitability and Inventory Management - The gross profit margin in FY25 decreased by 0.3 percentage points to 65.6%, primarily due to the increased proportion of revenue from distribution and online channels [4] - The selling expense ratio increased by 0.6 percentage points to 35.6% due to increased brand investment and expenses related to the 30th anniversary activities; the management expense ratio rose by 0.1 percentage points to 9.6% [4] - The effective tax rate decreased by 3.8 percentage points to 26.3% due to reduced withholding tax on dividends, resulting in a net profit margin attributable to shareholders increasing by 0.1 percentage points to 16.1% [4] - The inventory turnover days at the end of FY25 increased by 5 days to 161 days, mainly due to increased inventory and stocking for the 2024 autumn and winter seasons [4] Group 4: Future Development Trends - The company reiterated its goal of achieving 10 billion yuan in retail sales for FY26, with expectations of better terminal sales performance than peers in July and August [5] - The company is optimistic about its strong member loyalty and multi-brand cultivation capabilities, which are expected to lead to stable growth in performance [5] - The company plans to build its own logistics center, which is expected to reduce capital occupation and improve financial income net, leading to a faster revenue growth rate than profit growth in FY26 [5]

Core Insights - Jiangnan Buyi (03306) reported FY25 revenue and profit in line with expectations, with stable same-store sales and high member retention, alongside strong growth in emerging brands [1][2] Financial Performance - FY25 revenue increased by 4.6% year-on-year to 5.55 billion yuan, while net profit attributable to shareholders rose by 5.3% to 890 million yuan [1] - Gross margin decreased by 0.3 percentage points to 65.6%, with a maintained dividend payout ratio of 75% [1] - End-of-period inventory increased by 24% year-on-year to 930 million yuan, with good inventory turnover in outlet channels during July and August, and some inventory increase related to autumn/winter preparations for 2025 [1] Future Guidance - The company maintains a steady outlook, aiming for a retail target of 10 billion yuan for FY26, with corresponding revenue targets of 6 billion yuan and gross/net profit margin targets of over 65% and 15%, respectively [1] - The dividend yield is attractive, estimated at around 7% to 7.5% based on consensus expectations and closing prices [1] Growth Potential - The company demonstrates the ability to sustain growth and withstand cyclical fluctuations through design-driven and refined retail management, building a loyal and high-retention fan membership [2] - Despite pressure on customer traffic, the company managed to maintain flat same-store sales, with retail revenue in July and August showing positive growth compared to the previous year [2] - As a multi-brand designer group, the company possesses unique operational alpha and resilience, making it a noteworthy investment opportunity [2]

Core Viewpoint - The report from Minyin International indicates that Jiangnan Buyi (03306) has met revenue and profit expectations for FY25, with stable same-store sales and high member retention, alongside significant growth from emerging brands [1][2] Financial Performance - For FY25 (ending June 30, 2025), revenue increased by 4.6% year-on-year to 5.55 billion yuan, while net profit attributable to shareholders rose by 5.3% to 890 million yuan [1] - The gross profit margin decreased by 0.3 percentage points to 65.6%, and the dividend payout ratio remained at 75% [1] - Inventory at the end of the period increased by 24% year-on-year to 930 million yuan, with good inventory clearance in the outlet channels during July and August, and some inventory increase related to preparations for the autumn/winter season [1] Strategic Outlook - The company maintains a steady guidance, aiming for a retail target of 10 billion yuan for FY26, with corresponding revenue targets of 6 billion yuan and gross/net profit margin targets of over 65% and 15%, respectively, while keeping the dividend payout ratio at 75% [1] - The attractive dividend yield is estimated to be around 7% to 7.5% based on consensus expectations and closing prices [1] Growth Potential - The company demonstrates the ability to sustain growth and withstand cyclical fluctuations through design-driven and refined retail management, creating a loyal and high-retention fan membership base [2] - Despite pressure on customer traffic, the company managed to maintain flat same-store sales for FY25, with retail sales in July and August showing positive growth, outperforming the overall mid-to-high-end women's wear industry [2] - As a multi-brand designer group, the company possesses unique operational alpha and resilience, making it a candidate for active investment consideration [2]

Core Viewpoint - Jiangnan Buyi maintains its target of achieving 10 billion in retail by fiscal year 2026, focusing on domestic market expansion while viewing overseas markets as long-term opportunities for brand influence and lifestyle globalization [2][3]. Financial Performance - For the fiscal year 2025, Jiangnan Buyi reported total revenue of approximately RMB 5.548 billion, a year-on-year increase of about 4.6% [2]. - The company's gross profit reached RMB 3.64 billion, with a stable gross margin exceeding 65% [2]. - Net profit for the fiscal year was approximately RMB 897 million, reflecting a 6% year-on-year growth, resulting in a net profit margin of 16.2%, surpassing previous expectations [3][4]. Sales Channels - Online sales grew by 18.3% to RMB 1.201 billion, while the overall retail network expanded to 2,117 stores globally, covering all provinces in mainland China and 10 other countries [6][7]. - The contribution of online sales to total revenue surpassed 20% for the first time [7][8]. Multi-Brand Strategy - Jiangnan Buyi operates a multi-brand strategy with three tiers: mature brands, growth brands, and emerging brands, covering various segments including menswear, womenswear, and children's wear [4]. - The mature brand JNBY accounted for 54.3% of total revenue, while emerging brands generated RMB 361 million, a 107.4% increase year-on-year [4][5]. Operational Strategy - The company plans to enhance its retail network and optimize its direct sales team for better operational efficiency, focusing on key cities [5][8]. - Jiangnan Buyi aims to improve its supply chain and inventory structure through a shared inventory system and plans to establish a more intelligent distribution center [9]. Membership and Customer Engagement - Active membership accounts increased to over 560,000, contributing more than 80% of total retail revenue, with members spending over RMB 5,000 also rising to over 330,000 [8][9]. - The company is enhancing member benefits and experiences to drive further growth in online sales [8].

Core Viewpoint - The company is expected to achieve steady revenue growth in FY25 and maintain a high net profit margin, with a target of reaching 10 billion in sales by focusing on "fan economy" [1][3] Group 1: Financial Performance - In FY25, the company achieved revenue of 5.55 billion, a year-on-year increase of 5%, and a net profit of 890 million, also up 5% year-on-year [1] - For FY25, the revenue growth in H1 and H2 was 5% and 4% respectively, while net profit growth was 5% in H1 and 7% in H2, indicating a faster profit growth in the second half [2] - The company maintained a gross margin of -0.3 percentage points and an increase in sales expense ratio by 0.6 percentage points, primarily due to the rise in online revenue [2] Group 2: Brand and Channel Performance - Revenue growth by brand in FY25 showed mature brands up 2%, growing brands down 0.5%, and emerging brands up 107%, with corresponding gross margins varying [2] - Online revenue increased by 18%, while self-operated and distribution revenue decreased by 6% and increased by 10% respectively, with a net decrease in self-operated stores [2] Group 3: Membership and Retail Contribution - Membership contributed over 80% to retail sales, with active members reaching 560,000, and members with annual purchases exceeding 5,000 yuan increasing to over 330,000 [2] Group 4: Future Guidance and Dividends - The company maintains its FY26 retail sales target of 10 billion, with stable profitability expected [3] - The total dividend per share for FY25 is 1.38 HKD, corresponding to a dividend yield of over 6%, indicating a commitment to high dividends for shareholders [3]