Dongwu Securities: First gives Jiangnan Cloth (03306.HK) a "buy" rating, decoding Jiangnan Cloth's operational resilience.

According to the Zhitong Financial APP, Dongwu Securities released a research report, initiating a "Buy" rating for Jiangnan Bubu (03306.HK). The company is expected to achieve a net profit attributable to shareholders of 9.69/10.46/11.25 billion yuan in FY2026-2028, with year-on-year increases of +8.5%/8.0%/+7.6%, and corresponding P/E ratios of 9/8/8 times, which are relatively low in the industry with a high dividend yield, providing a sufficient margin of safety. Jiangnan Bubu is a rare counter-cyclical growth target in the mature and diversified women's clothing sector, built on relatively affordable prices, unified design styles, strong member operations, and a fan economy, as well as the support of the most robust distribution model in the industry through a four-year lifecycle, shared inventory, and returnable goods safety net mechanism effectively managing risks and demonstrating strong operational resilience.