Core Viewpoint - The company is experiencing operational pressure but has significantly reduced losses in H1 2025, with a focus on brand adjustments and internal partnership models to stabilize and expand store presence [1][2] Group 1: Financial Performance - In H1 2025, the company achieved revenue of 1.942 billion yuan, a year-on-year decrease of 18.88%, with the brand "Xiabuxiabu" generating 1.135 billion yuan (down 13.5%) and "Coucou" generating 745 million yuan (down 25.8%) [1] - The net profit attributable to the parent company was -84 million yuan, a significant reduction from -272 million yuan in the same period last year, primarily due to improved raw material costs and reduced asset impairment losses [1] Group 2: Store Operations - As of H1 2025, "Xiabuxiabu" had a total of 763 stores, with a distribution of 42.6% in first-tier cities, 41.0% in second-tier cities, 16.0% in third-tier and below, and 0.4% overseas; the number of stores decreased by 63 year-on-year but increased by 3 compared to the end of 2024, indicating stabilization [1] - The company has implemented improvements in "Xiabuxiabu" stores, including promoting a small store model and controlling engineering costs, resulting in an overall turnover rate of 2.6 times, up from 2.3 times last year [1] - The "Coucou" brand had a total of 174 stores, with a year-on-year decrease of 71 stores, indicating it is still in a closure phase; the turnover rate for "Coucou" was 1.4 times, down from 1.6 times last year [2] Group 3: Strategic Initiatives - The company began implementing an internal partnership system for "Xiabuxiabu" in July 2025, with 5 partnership stores currently operating, showing better operating profit margins compared to regular stores; the company plans to add 60 partnership stores by the end of 2026 [1] - "Coucou" is undergoing a painful adjustment phase, with a new "dual-point" model being tested, which has shown significantly better performance than regular stores, and plans to roll it out to all mainland stores [2] Group 4: Ratings and Future Outlook - The company maintains a "Hold" rating with a target price of 1.15 HKD per share, reflecting a potential upside of 17.3% from the current price; projected net profits for 2025-2027 are expected to be -242 million yuan, -21 million yuan, and 11 million yuan respectively [2]
呷哺呷哺(0520.HK)：亏损大幅收窄 期待经营调整效果