Core Viewpoint - The company's 1HFY25 performance met expectations, with revenue of 3.156 billion yuan and a net profit of 600 million yuan, reflecting year-on-year growth of 5.0% and 4.7% respectively [1] Performance Review - The company declared an interim dividend of 0.45 HKD per share, corresponding to a payout ratio of approximately 37% [1] - Revenue breakdown by channel for 1HFY25 showed a decline in direct sales by 7.7% to 1.117 billion yuan, while distribution and e-commerce channels grew by 14.2% and 11.9% to 1.437 billion yuan and 602 million yuan respectively [1] - The number of direct stores decreased by 24 to 491, while distribution stores increased by 126 to 1,614, indicating a strategic channel optimization [1] - Comparable store sales showed a modest increase of 0.1% year-on-year, indicating stability in sales performance [1] Brand Performance - Revenue from the mature brand JNBY increased by 3.6% to 1.760 billion yuan, demonstrating strong growth resilience [2] - The emerging brands saw significant growth, with revenue increasing by 147.3% to 194 million yuan, albeit from a low base [2] - Active membership accounts slightly declined to 540,000, attributed to reduced foot traffic, while high-value members (spending over 5,000 yuan) increased by 30,000 to over 330,000 [2] Cost and Profitability - The gross profit margin remained stable at 65.1%, while the selling expense ratio increased by 1.1 percentage points to 32.3% due to marketing activities for the brand's anniversary [2] - The management expense ratio rose by 0.4 percentage points to 8.6%, but government subsidies increased and the effective tax rate decreased, keeping the net profit margin stable at 19.0% [2] Development Trends - The company has been focusing on brand strength, successfully launching multiple "JNBY+" concept stores and investing in digital retail channels [2] - The company completed acquisitions of a children's clothing brand and a 100% stake in a department store brand, expanding its multi-brand portfolio [2] Earnings Forecast and Valuation - The earnings forecasts for FY25 and FY26 are maintained at 870 million yuan and 930 million yuan respectively, with the current stock price corresponding to 10 and 9 times the FY25 and FY26 earnings [3] - The target price has been raised by 16% to 20.00 HKD, reflecting an expected upside of 13% from the current stock price [3]

Core Viewpoint - Jiangnan Buyi reported a steady performance in FY2025 H1 with total revenue of 3.156 billion yuan, up 5% year-on-year, and net profit of 604 million yuan, up 5.5% year-on-year, while proposing an interim dividend of 0.45 HKD per share [1][2] Financial Performance - FY2025 H1 total revenue reached 3.156 billion yuan, with a year-on-year increase of 5% and net profit of 604 million yuan, reflecting a 5.5% year-on-year growth [1] - The overall gross margin slightly declined to 65.1%, down 0.1 percentage points year-on-year, while the net profit margin increased to 19.1%, up 0.1 percentage points year-on-year [1][2] - Revenue breakdown by brand shows JNBY at 1.76 billion yuan (up 3.6%), Sketch at 388 million yuan (down 6%), jnby by JNBY at 476 million yuan (down 0.6%), LESS at 338 million yuan (up 0.8%), and emerging brands at 194 million yuan (up 147.3%) [1] Channel Performance - Revenue by channel indicates direct sales at 1.117 billion yuan (down 7.7%), distributor channel at 1.437 billion yuan (up 14.2%), and online channel at 602 million yuan (up 11.9%) [1] - The overall expense ratio increased, with sales and marketing expenses at 32.35% (up 1.1 percentage points) and administrative expenses at 8.62% (up 0.4 percentage points) [2] Store Expansion and Brand Development - As of December 31, 2024, the group operated 2,126 independent retail stores globally, an increase of 101 stores since June 30, 2024, with JNBY having 960 stores [3] - The company upgraded store images and optimized supply chain management, contributing to retail performance improvement, alongside the acquisition of Hangzhou Muli Brand Management Company to expand its brand matrix [3] Future Outlook - The company is expected to achieve revenues of 5.53 billion, 5.96 billion, and 6.42 billion yuan for FY2025-2027, with net profits of 880 million, 930 million, and 1 billion yuan respectively, indicating a positive growth trajectory [4] - The current closing price corresponds to a PE ratio of 8.0, 7.5, and 7.0 for the respective years, suggesting the company is a low-valuation, high-dividend quality stock [4]

Core Viewpoint - The company reported stable growth in FY2025 H1, with a mid-term dividend of 0.45 HKD per share, and is expected to maintain its leading designer brand advantage in FY2025 H2, resulting in steady performance [1][2]. Financial Performance - In FY2025 H1, the company achieved revenue of 3.156 billion RMB, a year-on-year increase of 5.0%, and a net profit of 604 million RMB, up 5.5% year-on-year, meeting expectations [1]. - The company's gross margin remained stable during this period [1]. Brand Performance - The mature brand JNBY generated revenue of 1.76 billion RMB in H1, growing by 3.6% year-on-year, while emerging brands saw significant growth with a total revenue of 190 million RMB, up 147% year-on-year [2]. - The growth rates for other brands were as follows: Su Xie at 390 million RMB (-6.0%), jnby by JNBY at 480 million RMB (-0.6%), and LESS at 340 million RMB (+0.8%) [2]. Channel Performance - Revenue from self-operated, distribution, and online channels in H1 was 1.12 billion RMB (-7.7%), 1.44 billion RMB (+14.2%), and 600 million RMB (+11.9%) respectively [2]. - The company has a total of 491 self-operated stores and 1614 distribution stores in China, with a net decrease of 24 self-operated stores and a net increase of 126 distribution stores in H1 [2]. Membership and Consumer Engagement - Membership sales accounted for over 80% of total sales, with active members spending over 5000 RMB increasing to 330,000, contributing to a sales increase of 8% to 4.68 billion RMB [2]. - The company is focusing on enhancing brand strength and refining membership management for steady growth in FY2025 [2]. Dividend and Shareholder Returns - The company announced a mid-term dividend of 0.45 HKD per share, with an expected annual dividend yield of approximately 8% [2].

Summary of Jiangnan Buyi Conference Call Company Overview - **Company**: Jiangnan Buyi - **Industry**: Retail, specifically in apparel and fashion Key Points and Arguments Retail Performance - Retail sales in April and May showed significant growth, driven by the May Day holiday and promotional activities with Xiaohongshu, particularly involving core brands such as Suxie and Less, as well as the early 618 promotion effect [2][3] - Women's apparel performed the best, followed by children's wear and men's wear [2][5] - Online sales adopted a unified inventory strategy, focusing on self-management and a comprehensive membership strategy, leading to an increase in the proportion of new products contributing to overall GPA [2][3] Sales Strategy and Discounts - The overall discount strategy remained stable, with discounts on seasonal products steady and discounts on out-of-season products narrowing [2][3] - The company reported a significant improvement in offline retail in May, with high single-digit growth and positive same-store sales [2][3][10] Store Operations and Channel Strategy - High-tier city direct-operated stores showed significant improvement, contributing greatly to overall performance [2][9] - The transition from self-operated to distribution model has been implemented in the first half of the fiscal year, primarily in cities like Wenzhou, Qingdao, and Wuxi, which may temporarily affect revenue recognition but is expected to have a positive long-term impact if business scales up [2][13] Future Outlook and Product Strategy - The autumn/winter ordering meeting indicated stable growth expectations, with a growing importance of fast-response ordering models [2][14] - Two women's brands have different expansion strategies: GENNBIO focuses on increasing single-store output, while Max has significant expansion potential [2][15] Membership and Customer Engagement - The total membership exceeded 12 million, with continuous growth through member activities and data accumulation to enhance customer conversion rates [3][22] - The company maintains its annual performance guidance, expecting revenue close to 500 million yuan, with profits potentially exceeding previous guidance due to better-than-expected first orders and effective budget management [3][23][25] Inventory Management - The company is not overly concerned about the slightly lower sell-through rate of autumn/winter products, as the product lifecycle is long, allowing for continued sales through online channels and outlet stores [3][26] Children's Wear Expansion - The children's wear segment shows significant potential, with plans to open offline stores for the newly acquired functional children's wear brand On My Game and explore multi-brand children's wear collection stores [3][19][21] Digital Retail Contribution - The mini-program has made a significant contribution to YPD, with high single-digit retail sales growth attributed to this digital channel [3][17] Promotional Campaigns - The 618 promotion strategy this year differed from previous years, focusing on self-management without exclusive e-commerce products or influencer marketing, which has benefited online sales [3][7] Additional Important Insights - The company is exploring new electronic products, with specific developments expected in the next fiscal year [3][21] - The overall health of inventory turnover remains positive, with the company confident in its ability to manage unsold seasonal products effectively [3][26]

Core Insights - Jiangnan Buyi, a fashion brand, has expanded its brand matrix to include nine brands, achieving a revenue of 3.156 billion yuan with a year-on-year growth of 5.0% in the first half of the 2025 fiscal year [1][2] - The company faces challenges such as sales pressure and extended payment cycles, while its higher price point products are not considered essential by consumers [2][9] - Jiangnan Buyi is focusing on a complementary brand matrix strategy to mitigate single-brand dependency and enhance growth potential [5][10] Financial Performance - For the six months ending December 31, 2024, Jiangnan Buyi reported a net profit of 604 million yuan, reflecting a year-on-year increase of 5.5% [1] - The revenue from the JNBY brand grew by 3.6% to 1.76 billion yuan, while non-JNBY brand revenue accounted for 44.2% of total revenue, with emerging brands seeing a 147.3% increase [5][7] Membership Strategy - Jiangnan Buyi's core members, approximately 30-40% of the total, contribute to 70-80% of the company's revenue, with 540,000 active members generating over 80% of retail sales [9][10] - The company has implemented a VIP system that allows members to enjoy shared benefits across its nine brands, enhancing customer loyalty [10][11] - Jiangnan Buyi is also exploring SVIP services, offering personalized styling advice to enhance customer engagement and sales opportunities [11][14] Marketing and Brand Development - The company has increased its marketing expenditure by 8.62% to 1.021 billion yuan, representing 32.3% of total revenue, which is seen as a necessary investment for brand enhancement [14] - Jiangnan Buyi is leveraging partnerships with various online platforms to track consumer behavior and optimize advertising strategies, achieving a return of 7 times on advertising spend [11][14]