GF SECURITIES·2026-03-27 04:47Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on a 30x PE valuation for 2026, resulting in a reasonable value of 40.34 CNY per share for A-shares and 36.66 HKD per share for H-shares [7]. Core Insights - The company reported a revenue of 288.7 billion CNY for 2025, representing a year-on-year growth of 7.3%, and a net profit attributable to shareholders of 70.4 billion CNY, up 11.0% year-on-year [7]. - In Q4 2025, the company achieved a revenue of 72.5 billion CNY, with a year-on-year increase of 11.4%, and a net profit of 17.2 billion CNY, reflecting a growth of 12.3% [7]. - The company continues to enhance its market share amidst a recovering restaurant sector, with significant growth in online sales, which increased by 31.9% in 2025 [7]. - The company announced a total dividend of 79.5 billion CNY for the year, exceeding expectations with a dividend payout ratio of 113% [7]. - A new employee stock ownership plan was introduced, aiming for a compound annual growth rate of no less than 11.5% in net profit from 2025 to 2027, enhancing earnings visibility [7]. Financial Projections - Revenue projections for 2026 to 2028 are 312 billion CNY, 337 billion CNY, and 363 billion CNY, respectively, with growth rates of 8.2%, 7.9%, and 7.7% [2]. - Net profit attributable to shareholders is expected to reach 79 billion CNY, 88 billion CNY, and 97 billion CNY for the same period, with growth rates of 11.8%, 11.6%, and 10.5% [2]. - The report forecasts an EPS of 1.34 CNY, 1.50 CNY, and 1.66 CNY for 2026 to 2028, with corresponding PE ratios of 27.5, 24.6, and 22.3 [2].