Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> Citi Raises TP of GREEN TEA GROUP (06831.HK) to HKD13.4, Benefiting from Mainland Leisure Dining Recovery
Recommend 0 Positive 5 Negative 0 |
||||
|
||||
|
Citi published a research report stating that the operating profit margins of both new and existing stores of GREEN TEA GROUP (06831.HK) are similar, and the opening of new stores has not dragged down the profit margins. The rapid expansion of stores is expected to translate into strong profit growth. Management aims to achieve a net profit growth of over 30% and a sales growth of over 20% by 2026, with 30% of new stores to be opened in China. The firm noted that management has observed a continuous recovery in China's leisure dining industry since the beginning of this year, consistent with observations from the management of CHINA RESOURCES BEER (00291.HK). Citi holds a more positive view on leisure dining operators in China's dining industry by 2026 compared to Western fast-food chains. Citi raised the group's net profit forecasts for this year and next by 12% and 14%, respectively, to reflect better-than-expected performance in 2025. The firm forecasts the company's sales to grow by 21% YoY and net profit by 31% YoY in 2026. Based on a forecast P/E ratio of 13x for 2026, the TP is raised from HKD11.1 to HKD13.4, maintaining a "Buy/High Risk" rating. (hc/u) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
URL: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
