Investment Rating - The investment rating for Jiangnan Buyi (03306.HK) is "Outperform the Market" (maintained) [1] Core Views - Jiangnan Buyi demonstrated resilient growth in the first half of 2025, achieving revenue of 3.156 billion HKD, a year-on-year increase of 5.0%, showcasing operational resilience amid a challenging consumer environment [2][4] - The company maintains a high profitability level with a net profit of 604 million HKD, reflecting a year-on-year growth of 5.5% and a net profit margin of 19.1% [2][4] - The online channel outperformed, with revenue growth of 11.9% to 680 million HKD, contributing to 21.5% of total revenue, and an improved gross margin of 68.4% [3][4] Summary by Sections Financial Performance - For the first half of 2025, Jiangnan Buyi's revenue reached 3.156 billion HKD, with a gross margin of 65.1%, slightly down by 0.1 percentage points [2] - Operating cash flow was 823 million HKD, despite a year-on-year decline of 22.2% due to increased inventory, maintaining a solid net cash ratio of 1.36 [2][4] Channel Performance - Online revenue increased by 11.9% to 680 million HKD, while offline revenue grew by 3.5% to 2.55 billion HKD, with self-operated channels experiencing a decline of 7.7% [3] - The main brand, JNBY, accounted for 55.8% of total revenue, growing by 3.6%, while emerging brands saw significant growth of 147.3% [3] Profitability and Valuation - The company has a target price range of 17.5 to 19.2 HKD, corresponding to a FY2025 PE ratio of 9.5 to 10.5 times [4] - Profit forecasts for FY2025-2027 are adjusted to 889 million, 960 million, and 1.022 billion HKD, reflecting year-on-year growth rates of 5.2%, 8.1%, and 6.2% respectively [4][5]
江南布衣：2025上半财年稳健增长，线上渠道表现出色-20250305