Investment Rating - The report maintains a neutral rating for the company, with a target price adjusted to HKD 2.79, indicating a potential decline of 3.1% from the current price of HKD 2.88 [2][17]. Core Insights - The company continues to face operational pressures in Q2, leading to a downward revision of profit forecasts for 2025-2027. The same-store sales for key brands have shown a decline, with the company adjusting its strategies to stabilize performance [6][19]. - Despite the challenges, there are signs of improvement in the core brand's performance, with expectations for marginal recovery in the second half of the year as store adjustments take effect [6][19]. - The company has reduced its store count by 51 in Q2, primarily due to structural adjustments of underperforming locations, which is expected to enhance operational efficiency moving forward [6][19]. Financial Overview - Revenue projections for 2025 have been revised down to RMB 5,615 million, reflecting a decrease of approximately 6.6% from previous estimates. Net profit forecasts have also been adjusted down to RMB 153 million for 2025, a reduction of 31.3% [5][7][19]. - The company’s financial metrics indicate a significant drop in earnings per share (EPS) for 2024, with a forecast of RMB 0.04, down from RMB 0.31 in 2023. The EPS is expected to recover gradually in subsequent years [5][19]. - The report highlights a stable gross margin of around 64.3% for 2025, although operating and net profit margins are projected to decline slightly [7][21].
九毛九（09922）：九毛九（9922HK）