Glonghui, November 15 丨 According to Daiwa Development Research Report, Tan Tsai International (2217.HK) announced interim results. Although its same-store sales fell 8.5% year on year, revenue increased 6.8% year-on-year to HK$1.3 billion. Management said that in Hong Kong, from the third quarter of this fiscal year until now, its sales recovery trend has continued to improve, and the same-store sales trend is also better than August to September, but considering the more cautious expansion of “POS” and the slow recovery in same-store sales, it has lowered its target price from HK$4 to HK$3.25, but maintained “Buy” Enter the “rating”.

The bank said that management mentioned that management tends to be cautious about recent expansion plans and expects to open a restaurant in the second half of this fiscal year and also expand its POS development plan beyond Guangzhou and Shenzhen. Its second-tier cities have achieved encouraging results so far, and management is still confident of long-term growth opportunities in the mainland. The bank lowered its earnings per share forecast for the 2023-2025 fiscal year by 20% to 38%.

The bank also mentioned that in the case of Singapore, management plans to launch a more cost-effective store model suitable for food court expansion, considering the encouraging recovery after the easing of dine-in restrictions and the expansion of POS that was hampered by labor shortages. In Japan, the establishment of a management team is still in the early stages.