Group 1 - The core viewpoint of the report is that despite a weak macro consumption trend, the company Jiangnan Buyi (03306) maintains an "outperform" rating, with slight downward adjustments to FY2026-2027 profit forecasts [1] - The expected net profits for FY2026-2028 are projected to be 900 million, 960 million, and 1.01 billion yuan respectively, reflecting year-on-year growth of 1.0%, 6.8%, and 4.8% [1] - The company demonstrates strong and steady growth that outpaces the industry, supported by significant brand strength, product innovation, channel operations, and supply chain advantages [1] Group 2 - The company is a leading designer brand group in China, with multiple brands at different stages of maturity: mature, growth, and emerging [2] - For the fiscal year ending June 30, 2025, the company reported a revenue increase of 4.6% to 5.548 billion yuan and a net profit increase of 5.3% to 893 million yuan, driven by online channel growth and expansion of offline stores [2] - The gross margin decreased by 0.3 percentage points to 65.6%, primarily due to a shift from a higher-margin self-operated model to a lower-margin distribution model [2] - The operating cash flow decreased by 29.2% to 1.133 billion yuan, influenced by increased inventory, but the net cash ratio remains at a healthy level of 1.27 [2] - The company maintains a high dividend payout ratio, with total dividends of 716 million Hong Kong dollars for the year, resulting in a dividend rate exceeding 75% [2]