Investment Rating - The investment rating for the company is downgraded to Neutral with a target price of HKD 2.60, reflecting a cautious outlook on the industry and the company's performance challenges [2][5]. Core Insights - The company's revenue for the first half of 2024 was RMB 3.064 billion, a year-on-year increase of 6.4%. However, operating profit decreased by 32% to RMB 392 million, resulting in an operating profit margin of 12.8%, down from 20.0% in the same period of 2023 [1]. - Net profit attributable to shareholders fell by 67.5% to RMB 72.29 million, with a net profit margin dropping over 5 percentage points to 2.36% [1]. - Despite the opening of 59 new restaurants in the first half of 2024, the overall performance remained under pressure, particularly for the main brand, which saw declines in key metrics such as table turnover rate and same-store sales [1][2]. Summary by Sections Financial Performance - Revenue for 2024 is projected to be RMB 6.499 billion, with a growth rate of 8.6%. Net profit is expected to be RMB 257 million, a decrease of 43.3% compared to the previous year [4][6]. - The company has decided not to distribute an interim dividend due to the significant drop in net profit [1]. Store Expansion and Guidance - The company has adjusted its store opening guidance, planning to open only 80 new restaurants in mainland China and 13 overseas, down from previous targets of 80-100 and 15-20 respectively [1][2]. - The performance of the main brand, which accounts for 73% of revenue, has been negatively impacted by a decline in table turnover rate from 4.3 to 3.8, marking the lowest since 2019 [1]. Market Context - The report reflects a cautious stance on the restaurant industry, noting that competition remains intense and the overall consumer environment is weak, which has contributed to the downward revision of performance expectations [2][5].
九毛九：持续门店扩张未缓解业绩压力，并下调开店指引；评级下调至中性