JNBY Design Ltd (03306) shares advanced more than 7% during morning trading, reaching HK$21, with turnover of HK$34.511 million, driven by robust fiscal first-half results for 2026 and a high-dividend strategy.

For the 2026 fiscal year first half, JNBY reported a 7.0% year-on-year revenue increase to 3.376 billion yuan, with net profit rising 11.9% to 676 million yuan. The company's gross profit margin stood at 66.5%. According to a previous note from Guoyuan International, management reaffirmed its fiscal 2026 "100 billion retail target," which corresponds to approximately 6 billion yuan in revenue. Due to stronger-than-expected first-half performance, the company now expects full-year net profit to exceed its initial forecast, potentially reaching 950 million yuan, while maintaining its 75% dividend payout plan.

In a July 29 research report, Zheshang Securities highlighted that JNBY's unique positioning and highly loyal core customer base provide strong growth stability. The broker noted that as a leading Chinese women's apparel company, the firm benefits from sticky clients, rising brand power, and positive operating leverage that boosts margins each year. Combined with ample cash flow and a consistent 75% dividend yield, Zheshang assigned a target PE of 11x for FY2027, implying a market capitalization of HK$13.8 billion and potential share price upside of over 30%.