The Zhitong Finance App learned that Huatai Securities released a research report saying that it maintains the “increase in holdings” rating of Gaoxin Retail (06808). Since offline consumption has not recovered in FY2023, the EPS for the 2023-25 fiscal year is expected to be 0.002/0.1/0.16; taking into account its continued restructuring of the offline business format and optimization of epidemic measures or a recovery in passenger flow, there is still an impairment impact, with a target price of HK$2.82. During the first half of fiscal year 2023, the company achieved net profit of -67 million yuan, or -150.9% year-on-year, mainly due to impairment of store buildings and leases, decoration, equipment and usage rights of 142 million yuan.

According to the report, the company's offline retail business has yet to fully recover, actively promoted the restructuring of hypermarkets to increase the appeal of offline consumers, and the East China store transformation reaped initial results (store receivables increased by double digits after the transformation). Meanwhile, the online sales portfolio continues to be optimized, customer unit prices continue to rise, and double-digit revenue growth has been achieved. Considering that the profit model is still being restructured offline, Gaoxin's retail showroom plans are still relatively cautious.