江南布衣（03306）：2026上半财年净利润增长双位数，毛利率稳步提升

Investment Rating - The investment rating for Jiangnan Buyi (03306.HK) is "Outperform the Market" [5][20]. Core Views - The company achieved a revenue of 3.376 billion yuan in the first half of FY2026, representing a year-on-year growth of 7.0%, demonstrating resilience and competitiveness in a challenging retail environment [1]. - The gross margin improved by 1.4 percentage points to 66.5%, driven by changes in channel structure, pricing strategies, and discount management [1]. - Net profit increased by 11.9% to 676 million yuan, with a net profit margin rising from 19.1% to 20.0% [1]. - The company reported a healthy operating cash flow of 999.6 million yuan, up 21.1% year-on-year, supporting its high dividend payout [1]. Summary by Sections Financial Performance - Online revenue grew by 25.1% to 750 million yuan, accounting for 22.3% of total revenue, with a gross margin increase of 1.6 percentage points to 65.8% [2]. - Offline revenue saw a modest growth of 2.7%, with self-operated channels growing by 5.7% and distributor channels remaining flat [2]. - Comparable store sales declined by 2.2%, primarily due to the impact of a warm winter and the timing of the Spring Festival [2]. Brand Performance - The main brand, JNBY, accounted for 55.1% of total revenue, growing by 5.7% with a gross margin increase of 1.8 percentage points to 69.4% [2]. - The growth brand segment accounted for 37.9% of revenue, showing a slight decline of 0.2%, while the LESS brand performed well with a revenue increase of 16.3% and a gross margin improvement of 1.7 percentage points to 70.5% [2]. - Emerging brands represented 7.0% of revenue, growing by 22.4%, although their gross margin faced pressure, decreasing by 3.6 percentage points to 48.8% [2]. Earnings Forecast - The earnings forecast for FY2026-2028 has been adjusted upwards, with expected net profits of 960 million, 1.02 billion, and 1.07 billion yuan, reflecting year-on-year growth rates of 7.3%, 6.5%, and 4.7% respectively [3][21]. - The target price is set between 21.8 and 25.8 HKD, corresponding to a price-to-earnings ratio (PE) of 11-13x for FY2026 [3][20].