Lyon: Raise JNBY's target price to 25 Hong Kong dollars and rate it as "outperforming the market".

Lyon released a research report, stating that the target price of JNBY (03306) has been raised from HK$17 to HK$25, with a rating of "outperform". Last Friday (February 27th), the stock price rose by 7%, benefiting from better-than-expected net profit in the first half of the 2026 fiscal year ending December last year, as well as steady progress towards the sales and net profit targets for the 2026 fiscal year (60 billion yuan and 9 billion yuan respectively). The gross profit margin expanded by 1.4 percentage points, benefiting from well-controlled discounts, as well as the favorable brand and channel mix. The bank expects the group's sales and net profit for the 2026 fiscal year to increase by 9% and 13% year-on-year, while raising sales and net profit forecasts for the period from 2026 to 2027 by 0% and 2% to 3%, respectively. The valuation basis has been raised, with the target P/E ratio for the next 12 months increased from 8 times to 10 times.