Investment Rating - The investment rating for the company is "Buy" with a current price of 21.52 HKD and a target value of 24.67 HKD [4]. Core Insights - The company reported strong performance in FY2026H1, achieving revenue of 3.376 billion RMB (up 7.0% YoY) and a net profit of 674 million RMB (up 12.5% YoY) [9]. - Active membership continues to grow, with 590,000 active accounts (up 9.3% YoY), contributing over 80% of retail sales [9]. - The company declared a dividend of 0.52 HKD per share, representing 36.4% of net profit [9]. Financial Performance Summary - Revenue projections for the company are as follows: - 2024A: 5.303 billion RMB - 2025A: 5.548 billion RMB - 2026E: 6.064 billion RMB - 2027E: 6.560 billion RMB - 2028E: 7.070 billion RMB - The expected growth rates for revenue are 18.8% in 2024, 4.6% in 2025, 9.3% in 2026, 8.2% in 2027, and 7.8% in 2028 [2]. - The projected EPS for the next few years is as follows: - 2026E: 1.82 RMB - 2027E: 1.97 RMB - 2028E: 2.16 RMB [9]. - The company maintains a high ROE of 39.1% in 2024, gradually decreasing to 33.8% by 2028 [2][9]. Brand and Channel Performance - Revenue growth by brand for FY2026H1 is as follows: - JNBY: +5.7% - Suxie: +0.4% - jnby by JNBY: +4.1% - LESS: +16.3% - Other brands: +22.4% [9]. - Revenue growth by channel shows: - Self-operated: +5.7% - Distribution: +0.3% - Online: +25.1% [9]. Profitability Metrics - The company's gross margin improved to 66.5% (up 1.4 percentage points YoY) [9]. - The net profit margin for FY2026H1 is reported at 20.0% (up 0.9 percentage points YoY) [9]. - The company’s operating expenses are well managed, with selling, administrative, and financial expense ratios remaining stable [9].