Investment Rating - The investment rating for Jiangnan Buyi (3306.HK) is "Buy" [1] Core Insights - The company reported a revenue of 3.376 billion yuan and a net profit of 676 million yuan for FY2026H1, representing a year-on-year growth of 7.0% and 11.9% respectively. After excluding government subsidies, the net profit increased by 15.5% to 626 million yuan [2] - The company declared an interim dividend of 0.52 HKD per share, resulting in a dividend yield of 5.18% [2] - The company's brands showed varied performance, with JNBY, LESS, and emerging brands experiencing growth, while the men's brand "Suxie" continued to face challenges [3] - The gross profit margin improved to 66.5%, up 1.4 percentage points year-on-year, while the net profit margin increased to 20.0%, up 0.9 percentage points [4] - Inventory at the end of FY2026H1 was 1.02 billion yuan, a 9.4% increase year-on-year, indicating growth in finished goods and raw materials [5] Financial Projections - Revenue forecasts for FY2026-2028 are 6.004 billion, 6.396 billion, and 6.806 billion yuan, with year-on-year growth rates of 8.21%, 6.53%, and 6.41% respectively. Net profit forecasts for the same period are 971 million, 1.040 billion, and 1.115 billion yuan, with growth rates of 8.72%, 7.08%, and 7.24% [6][8] - The estimated earnings per share (EPS) for FY2026-2028 are 1.86, 1.92, and 2.09 yuan, with corresponding price-to-earnings (PE) ratios of 9.4, 9.1, and 8.3 [6][8]
江南布衣（03306）：业绩靓丽，剔除政府补助后净利增速更高