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 the full year 2025, representing a year-over-year increase of 2.6%, and a net profit of RMB 715 million, up 23.2% year-over-year [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 significant acceleration in new store openings in the second half of 2025 [3]. Summary by Sections Financial Performance - The company achieved a gross margin of 70.4% in 2025, an increase of 2.3 percentage points year-over-year, attributed to improved supply chain efficiency and cost control [2]. - The adjusted net profit for 2025 was RMB 699 million, with an adjusted net profit margin of 13.1%, reflecting a year-over-year increase of 1.8 percentage points [1][2]. Strategic Adjustments - The company plans to lower menu prices and adjust its delivery product structure to maintain its competitive edge of "good food at reasonable prices" [1]. - By the end of 2025, the company's dine-in and delivery revenues were RMB 3.261 billion and RMB 2.065 billion, respectively, with dine-in accounting for 61.0% of total revenue [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 projected net profit for 2026 and 2027 has been adjusted to RMB 588.83 million and RMB 707.03 million, reflecting reductions of 25% and 24% from prior estimates [4].
小菜园（999 HK）：期待战略调整后的经营改善