CMB International Securities analyst Walter Woo maintained a Buy rating on JNBY Design yesterday and set a price target of HK$23.30.
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Walter Woo has given his Buy rating due to a combination of factors that suggest potential growth for JNBY Design. Despite concerns about sluggish core brand sales growth and high inventory levels, the company has shown encouraging retail sales growth in July and August 2025. This improvement is attributed to several factors, including a low base, strong performance in outlet channels, and enhancements in member management and customer services.
Additionally, the company’s conservative guidance for FY26E, particularly regarding net profit margins, is seen as achievable. The long-term sales targets remain ambitious, but the potential for high single-digit sales growth in FY26E is supported by various drivers such as new brand launches and strategic discounts. While the macroeconomic environment in China poses challenges, the potential for accelerated net profit growth exists if same-store sales growth increases and operating leverage is realized.
JNBYF’s price has also changed moderately for the past six months – from $2.493 to $2.090, which is a -16.17% drop .