Investment Rating - The investment rating for Jiangnan Buyi (03306.HK) is "Outperform the Market" [1][4][16]. Core Views - The company is experiencing rapid growth in fiscal year 2024, with a revenue increase of 17.3% to 5.24 billion yuan and a net profit increase of 36.7% to 850 million yuan, driven by multiple brand stages and strong online and offline sales [1][16]. - The company maintains a high dividend payout ratio of 96.8%, with total dividends per share amounting to 1.71 HKD, supported by robust cash flow [1][16]. - Despite a challenging macroeconomic environment, the company achieved a steady revenue growth of 7.5% in the second half of the fiscal year, with improvements in gross margin and sales expense ratio [1][16]. Summary by Relevant Sections Financial Performance - For the fiscal year ending June 30, 2024, the company reported a revenue of 5.24 billion yuan, a year-on-year increase of 17.3%, and a net profit of 850 million yuan, up 36.7% [1][17]. - The gross margin improved by 2.4 percentage points to 66.2%, reflecting stable retail discounts and healthy inventory management [1][16]. - The operating cash flow was robust at 1.6 billion yuan, with a net cash ratio of 1.9 [1][16]. Revenue Breakdown - Online revenue grew by 18.4% to 1.01 billion yuan, while offline self-operated and distribution revenue increased by 16.4% and 17.7% to 2.16 billion yuan and 2.07 billion yuan, respectively [1][16]. - The main brand's revenue increased by 17.1%, while the emerging brand saw a significant growth of 28.7% [1][16]. Future Outlook - The company plans to maintain a dividend payout ratio of no less than 75% over the next three years, indicating strong confidence in future earnings [1][16]. - The net profit forecasts for FY2025-2027 are adjusted to 870 million, 940 million, and 990 million yuan, reflecting a growth of 2.4%, 8.0%, and 6.2% respectively [1][16]. Valuation - The target price is maintained at 17.5-19.2 HKD, corresponding to a PE ratio of 9.5-10.5x for FY2025 [1][16].
江南布衣：2024财年收入增长17%，现金流充裕分红率高