Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 8.35, down from the previous HKD 11.41 [6][4]. Core Insights - The company reported a revenue of RMB 5.345 billion for 2025, a year-on-year increase of 2.6%, and a net profit of RMB 715 million, up 23.2% year-on-year, with a net profit margin of 13.4%, an increase of 2.2 percentage points [1]. - The company is focusing on improving its dine-in experience and has adjusted its strategy to enhance cost-performance ratio, with a shift back to dine-in services [1][3]. - The company has opened a total of 807 stores by the end of 2025, with a net addition of 140 stores during the year, indicating a significant acceleration in store openings in the second half of 2025 [3]. Summary by Sections Financial Performance - The gross profit margin reached 70.4% in 2025, an increase of 2.3 percentage points, attributed to improved supply chain efficiency and cost control [2]. - The adjusted net profit for 2025 was RMB 699 million, reflecting a 19.4% year-on-year increase, with an adjusted net profit margin of 13.1% [1][2]. Strategic Adjustments - The company has proactively reduced menu prices and adjusted its delivery product structure to maintain its competitive edge of "good food at reasonable prices" [1]. - By the end of 2025, dine-in revenue accounted for 61.0% of total revenue, while delivery revenue accounted for 38.6%, showing a strategic shift towards enhancing the dine-in experience [1]. Future Projections - Revenue forecasts for 2026 and 2027 have been revised down to RMB 5.526 billion and RMB 6.324 billion, representing decreases of 10.5% and 13.7% from previous estimates [4]. - The forecasted net profit for 2026 is adjusted to RMB 588.83 million, a decrease of 25% from prior estimates, with an expected EPS of RMB 0.50 [4][10].
小菜园（00999）：期待战略调整后的经营改善