CICC has issued a research report maintaining its "Outperform" rating and target price of HK$24.97 for JNBY (03306), implying 10.4x/10.3x FY27/28 P/E ratios and approximately 14% upside from the current share price.
The bank has kept its FY27/28 earnings forecasts unchanged at RMB1.07 billion and RMB1.13 billion, corresponding to 9.2x/9.1x FY27/28 P/E ratios.
On September 23, CICC attended the company's Fall/Winter 2026 new product preview and the fifth anniversary exhibition of its "Fabric Fully Utilized" initiative, and held discussions with the company to gain a deeper understanding of its design-driven approach, membership operation capabilities and barriers, as well as progress in building a second growth curve through its multi-brand matrix.
Artistic Exploration and Design-Driven Approach Build Product Moat
JNBY is a quintessential design-driven apparel company that insists on exploring the beautiful life through art. Its business process does not start from commercialization; instead, designers first propose themes and concepts, followed by merchandise planning and category-level execution. The company invested RMB243 million in design and R&D in FY26, accounting for 4% of revenue, far ahead of industry peers. It employs over 100 apparel designers and more than 300 R&D personnel, including pattern makers and craftspeople. The design and R&D departments occupy nearly half of the headquarters space, and the design team enjoys a high degree of creative freedom, resulting in a distinctive and highly consistent brand style.
Mature Membership System Drives Both Member Quantity and Quality Higher
The bank notes that the company's membership operation system is mature. Built on its products, it constructs a benefits system centered on privileges and services, including dedicated stylists, the "Not Just a Box" subscription model, and long-term accompaniment by shopping guides. Its underlying data assets are abundant, aggregating consumer purchasing profiles through product tags to serve each member across all channels. In FY26, the company had over 610,000 active members, including 360,000 high-value members who spent more than RMB5,000 annually. These high-value members contributed RMB5.2 billion in retail sales, accounting for over 60% of total offline retail sales, while members overall contributed more than 80% of total retail sales.
Multi-Brand Matrix Growth Logic Gradually Materializing as Marsell Partnership Explores Higher Price Tier
Over the five years from FY21 to FY26, the revenue share of the mature brand JNBY declined from 56% to 54%, while growth and emerging brands accounted for nearly half of revenue. Among them, LESS revenue grew 17% year-on-year in FY26, while emerging brands Onmygame and B1ock saw revenue rise 32% year-on-year, both outpacing the group's overall revenue growth of 9% and becoming new engines leading growth. In addition, the company officially announced it has permanently acquired the Greater China trademark of Italian handmade footwear and leather goods brand Marsell and will operate it exclusively. Its pricing ranges from EUR400 to EUR900, approximately RMB3,000 to RMB7,000, a price tier the group has not yet reached, and it can also fill the company's weak categories such as footwear and bags. The bank continues to be optimistic about the company's multi-brand matrix opening up long-term growth space.
Earnings Forecast and Valuation
CICC maintains its FY27/28 earnings forecasts unchanged at RMB1.07 billion and RMB1.13 billion, corresponding to 9.2x/9.1x FY27/28 P/E ratios. It maintains its "Outperform" rating and target price of HK$24.97, corresponding to 10.4x/10.3x FY27/28 P/E ratios, implying approximately 14% upside from the current share price.
Risks
Risks include intensifying competition, retail sales falling short of expectations, and slower-than-expected member expansion and consumption power.