Guoxin Securities expects the net profit of Jiangnan Puyi FY2024-2026 to be 8.3/9.4/1.04 billion yuan, respectively.
The Zhitong Finance App learned that Guoxin Securities released a research report saying that maintaining the Jiangnan Puyi (03306) “buy” rating, based on FY2024H1's performance exceeding expectations and raising profit forecasts, the net profit for FY2024-2026 is expected to be RMB 8.3/9.4/1.04 billion, respectively, and the target price rises to HK$17.5-19.2. It is recommended to actively pay attention to allocation opportunities for undervalued, high-dividend, and high-quality targets. The company's performance has continued to surpass the industry's rapid and steady growth for a long time. The company's brand strength, product innovation, channel operation and supply chain advantages are remarkable, and FY2023 has shown high resilience to recovery since the second half of 2023. At the same time, the company has abundant cash flow and is willing to maintain an annual dividend rate of no less than 75% for the next 3 years.
According to the report, both online and offline channels have achieved high-quality growth, and the same store's growth rate is impressive. 1) With the recovery of offline customer flow, offline growth was mainly driven by same-store growth. In the first half of the fiscal year, retail stores increased by 23.9% compared to the same store, mainly based on incremental retail sales brought about by upgrading stores of various brands, building multi-brand integrated stores, inventory sharing and distribution systems, and the increase in the contribution of digital smart retail channels. At the same time, the number of offline stores increased by 46 to 2,036 compared to the end of June. 2) The online channel is based on the active layout of multiple platforms. Revenue grew rapidly by 24.2%, while gross margin increased by 1.4 percentage points. 3) Based on the continuous strengthening of brand strength and refined membership operations, the number of members increased by 0.5 million to 7.4 million compared to the end of June, and members contributed 80% of total retail sales; the number of active members and members with total purchases exceeding 5,000 yuan all increased significantly over the same period last year.