Investment Rating - The report maintains a "Buy" rating for Jiangnan Buyi (03306) with a 6-month target price of 13.64 HKD [1] Core Views - Jiangnan Buyi's FY24 revenue reached 5.24 billion RMB, a 17.3% YoY increase, driven by comparable store sales growth, online channel expansion, and offline store network growth [1] - Net profit for FY24 was 850 million RMB, a 36.5% YoY increase [1] - The company's dividend payout ratio reached 75%, with a total annual dividend of 890 million HKD (approximately 830 million RMB) [1] - The report highlights the company's low valuation and high dividend attributes as key investment attractions [1] Financial Performance - FY24 gross margin improved to 66.3%, up 1.0 percentage point YoY [1] - Net profit margin reached 16.2%, a 2.3 percentage point increase YoY [1] - Total assets amounted to 7.08 billion HKD, with a debt-to-asset ratio of 49.42% [1] Brand Performance - JNBY brand contributed 2.94 billion RMB in revenue, accounting for 56.2% of total revenue, with a 17.1% YoY growth [1] - CROQUIS (速写) generated 750 million RMB, a 11.7% YoY increase, representing 14.4% of total revenue [1] - jnby by JNBY achieved 810 million RMB in revenue, a 21.4% YoY growth, contributing 15.4% to total revenue [1] - LESS brand recorded 620 million RMB in revenue, an 18.3% YoY increase, accounting for 11.9% of total revenue [1] Channel Performance - Offline channels contributed 81.5% of total revenue, with self-operated stores generating 2.16 billion RMB (41% of total) and franchised stores contributing 2.07 billion RMB (39.5% of total) [1] - Online channel revenue reached 1.01 billion RMB, an 18.4% YoY increase, representing 19.3% of total revenue [1] Store Network - As of June 30, 2024, the company operated 2,024 physical stores globally, including 515 self-operated stores and 1,509 franchised stores [1] - The retail network covers all provinces, autonomous regions, and municipalities in mainland China, as well as 9 other countries and regions [1] - Comparable store sales growth reached 11% in FY24, driven by store image upgrades, inventory sharing system improvements, and digital retail initiatives [1] Membership System - Member contribution accounted for over 80% of total retail sales, with active member accounts exceeding 550,000 (compared to 510,000 in FY23) [1] - Members with annual purchases exceeding 5,000 RMB reached 310,000 accounts (compared to 260,000 in FY23), contributing 4.49 billion RMB in retail sales, a 27% YoY increase [1] Future Projections - The report forecasts FY25-27 revenues of 5.5 billion RMB, 6.0 billion RMB, and 6.6 billion RMB respectively [2] - Net profit projections for FY25-27 are 880 million RMB, 900 million RMB, and 990 million RMB respectively [2] - EPS estimates for FY25-27 are 1.69 RMB, 1.74 RMB, and 1.91 RMB per share, with a consistent PE ratio of 7x [2]
江南布衣：低估值高分红属性加强