According to a research report released by Morgan Stanley, the target price was lowered from HK$4.3 to HK$2.4, according to the “same as the market” rating for Xiabuxiabu (00520).
The bank believes that the company's stock price within the next 15 days will outperform its peers. It is estimated that the probability of a related situation occurring is 80%, mainly related to the company's announcement of earnings. The company issued a profit warning for 2023 last week. The net loss for three consecutive years was 180 million yuan to 200 million yuan due to excessive store closures and operational deleveraging. The bank believes that the performance was mainly due to continued expansion in the industry and the slowdown in net store opening in 2024, causing the company to lose market share.