JNBY (3306.HK) isn’t exactly a household dividend payer, not at least outside of China.
But that’s why this caught my attention. Over the last five years shares have grown 126%.
When institutional investors start circling an “under-the-radar” company like JNBY after years of ignoring it… it’s worth asking why:
What changed?
And is JNBY a buy at 8% dividend yield?
At HK$8.8 billion market cap, JNBY is a designer brand in China. Unlike Anta Sports or Li-Ning that sells mainly sportswear, JNBY is a low-profile player offering high-end fashion products.
I visited their stores in Hong Kong, and their products are significantly more expensive than those of sports brands.
Today, JNBY operates several brands, with its core brand, JNBY, generating over 50% of its revenues. Other smaller brands include 速写, jnby by JNBY, JNBYHOME, and B10CK. The company is working to grow these newer brands, hoping to replicate the success of the core brand.
Today, JNBY has over 2,100 stores in China, most located in Eastern China. This geographic focus aligns with other consumer brands, as disposable income levels are higher in Eastern China.
One interesting thing about JNBY — Its membership system. The fashion giant has built an impressive fanbase, reaching 9.5 million members.
In fact, there are over 333,000 members spending more than CNY5,000 a year, accounting for 60% of offline sales—an impressive figure. This makes JNBY’s system highly effective, which tracks customers buying behaviour.
And help boost revenues over time.
JNBY’s dividends are backed by a good track record since IPO
Between 2020 and 2024, its revenue, gross profits, and net profits grew at a compounded annual growth rate of 14%, 17%, and 25%, respectively.
Despite these results, it’s shares are still overlooked. Two reasons.
First, over the past year, JNBY’s shares have bounced between HK$12 and HK$17 per share. Earlier in March, shares were hit because there was a drop in operating cash flow…
And an increase in inventories….
JNBY explained this was due to expansion of its China distribution network. During the first half of 2025, the company aggressively opened over 100 new stores, compared to only 34 in the previous year.
However, I believe the current price already reflects these concerns.
Next, JNBY’s figures are still lower than those of Anta Sports. However, a closer look tells me Anta Sports already has a high valuation. On the other hand, JNBY trades at a P/E ratio of less than 10x.
JNBY’s cash rich position sustains its dividends
Since its listing in 2016, JNBY has paid out at least 75% of its profits as dividends. This is a generous policy for a growing company.
To date, the company has paid around HK$4.2 billion in dividends. What’s more important is JNBY has a cash of approximately HK$1.4 billion. And has no bank borrowing. This means JNBY has little pressure to reduce its dividends even if interest rates were to jump back up.
Today, if we exclude its special dividends last year, shares of JNBY sit at over 8% dividend yield per year.
What I’m concerned with JNBY
Over the last three years, China’s retail market has faced challenges. Its economy has slowed and luxury fashion is subjected to shifts in customer’s tastes. Although there are signs China’s economy is improving, trade tensions are making consumers cautious. This could reduce people’s spending on luxury clothing, which could impact JNBY.
What’s more, some critics have noted that JNBY’s designs can be too edgy.
There have been online complaints about violent themes in JNBY’s products. I am not sure if these complaints may draw attentions from the government, ultimately affecting JNBY’s operations.
My final thoughts
JNBY is one of the most interesting retail stocks I’ve seen in a while. Considering JNBY 1) is a fast-growing stock in the consumer sector, 2) being traded at less than 10x PE and 3) offers 8% dividend yield without any bank borrowings, the company is so tempting.
My take is: this looks like a dividend bet on China’s consumption market with an attractive yield.
What is the stock ticker for JNBY?