Lyon: Maintaining Gangnam's (03306) “Outperform the Market” rating, the target price of HK$25 is expected to increase sales and net profit by 8% and 9% respectively in FY2027

The Zhitong Finance App learned that Lyon released a research report stating that it will maintain the “outperform the market” rating and target price of HK$25 for Jiangnan Puyi (03306). The bank expects the company's sales and net profit to increase by 8% and 9% respectively in the 2027 fiscal year.

According to the report, management said that target Jiangnan clothing brands recorded positive growth in the 2027 fiscal year, young brands recorded high unit growth, and LESS was still the main growth engine. Furthermore, since July, retail sales have recorded a high year-on-year increase in the number of units, with online performance continuing to outperform offline performance. The company prioritizes store productivity over expansion. Every year, it opens about 200 stores and closes about 200 stores to optimize the network, and more than 70% of stores record profits.