CICC: Raises target price of Jiangnan Cloth to 23.7 Hong Kong dollars, maintains "outperform" rating.

The study report released by CICC pointed out that Jiangnan Chunyi's revenue at the end of June this year will reach 5.55 billion yuan for the 2025 fiscal year, an annual increase of 4.6%; the net profit attributable to the parent company will be 890 million yuan, an annual increase of 5.3%. This is in line with the bank's expectations. The company reiterated its retail target of 10 billion yuan for the 2026 fiscal year, and CICC expects the company's terminal turnover to outperform the industry in July and August. The strong member stickiness and multi-brand cultivation capabilities of the company are expected to drive steady growth in performance. The report stated that Jiangnan Chunyi plans to build its own logistics center, which is expected to reduce financial income net amount, resulting in faster revenue growth in the 2026 fiscal year than profit growth. Considering the continuous improvement of the company's brand strength, the bank raised its target price by 18% to 23.7 Hong Kong dollars, corresponding to 12 times and 11.6 times the price-to-earnings ratios for the next two years, respectively, with a 19% upside potential compared to the current price, maintaining a "outperform the industry" rating.