CLSA has released a research report indicating that JNBY (03306) achieved revenue and net profit of RMB 6 billion and RMB 1 billion respectively for the fiscal year ending June 30, 2026. These results align with the firm's expectations and surpass management's guidance. The brokerage maintains its "Outperform" rating with a target price of HK$25, while also raising its sales forecasts for fiscal years 2027 to 2028 by 2% to 4%.

The company's full-year dividend per share stands at HK$2.33, 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%.

According to the report, online performance has outpaced offline channels, with same-store sales growing 2.4% year-on-year as a key highlight. The LESS brand recorded a 17% year-on-year increase, outperforming the core JNBY brand's 7.6% growth.

Management targets maintaining year-on-year growth in both revenue and net profit for fiscal 2027, with the firm 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 firm has raised its sales forecasts for fiscal 2027 to 2028 by 2% to 4% to reflect sales resilience driven by its multi-brand portfolio and member retention and expansion efforts. Considering solid underlying demand, strong execution capabilities, exceptional shareholder returns, and an undemanding valuation, the firm views JNBY as one of its top picks in China.