Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 2.61, based on a 15x PE for 2024 [2][4]. Core Insights - The company has issued a mid-year earnings forecast indicating performance below expectations, with projected revenue of CNY 3.064 billion (+6.4%) and a net profit of no less than CNY 67 million (-69.8%) for H1 2024. This decline is attributed to high base effects from the previous year, changes in consumer habits due to external factors, and delayed cost control measures leading to negative operating leverage [1]. - The company is strengthening its partnership with Meituan by opening satellite stores, with plans to establish 50 new brand satellite stores in 2024. Meituan will provide commission rebates and operational support for these new stores [1]. - The company is introducing lower-priced menu items to attract a diverse customer base, significantly reducing prices for its signature dishes and rice to enhance value perception among consumers [1]. Financial Summary - The company’s revenue for 2024 is projected at CNY 6.065 billion, with a growth rate of 1.3%. The operating profit is expected to be CNY 429 million, reflecting a decline of 45.4% year-on-year. The net profit attributable to the parent company is forecasted at CNY 220 million, down 51.6% [3][7]. - Earnings per share (EPS) for 2024 is estimated at CNY 0.16, with subsequent projections of CNY 0.23 in 2025 and CNY 0.28 in 2026 [2][3]. - The gross margin is expected to be 62.5% in 2024, with a net margin of 3.6% [3][7].
九毛九：中报预告业绩低于预期，加强与美团合作吸引多元客群