JNBY (03306) continued its upward momentum today, with shares rising 2.72% to HK$21.88 at the time of writing, on trading volume of HK$85.62 million.

CLSA issued a research note stating that JNBY's fiscal 2026 revenue and net profit, for the period ending June 30, reached RMB 6 billion and RMB 1 billion respectively. These figures align with the broker's expectations and exceed management's guidance. The firm maintained its "Outperform" rating with a target price of HK$25, while raising its fiscal 2027-2028 sales forecasts by 2% to 4%.

The company declared a full-year dividend of HK$2.33 per share, which includes a special dividend of HK$0.75 per share to commemorate the 10th anniversary of its listing. This brings the full-year dividend yield to approximately 12%.

CLSA noted that online performance has outpaced offline channels, with same-store sales rising 2.4% year-on-year as a key highlight. The brand LESS posted a 17% year-on-year increase, outperforming the core brand JNBY's 7.6% growth.

Management targets maintaining year-on-year revenue and net profit growth in fiscal 2027, with CLSA forecasting increases of 8% and 9%, respectively. Looking ahead to the next decade, management aims to transform JNBY into an evergreen brand with global influence.

The broker raised its fiscal 2027-2028 sales forecasts by 2% to 4%, reflecting sales resilience driven by its multi-brand portfolio and member retention and expansion efforts. Considering resilient underlying demand, strong execution, exceptional shareholder returns, and undemanding valuations, CLSA views JNBY as one of its top picks in China.