CLSA: Maintains "Outperform" rating on JNBY (03306), target price HK$25, expects FY2027 sales and net profit to increase by 8% and 9% respectively.

CLSA issued a research report maintaining its "Outperform" rating on JNBY (03306) with a target price of HK$25. The bank expects the company's sales and net profit to grow by 8% and 9% respectively in FY2027. The report noted that management stated the goal is for the JNBY brand to record positive growth in FY2027, with younger brands recording high single-digit growth, while LESS remains the primary growth engine. In addition, retail sales have recorded high single-digit year-on-year growth from July to date, with online performance continuing to outperform offline. The company prioritizes store productivity over expansion, opening approximately 200 stores and closing approximately 200 stores annually to optimize its network, with over 70% of stores recording profitability.