Zhitong Financial APP learned that CICC issued a research report saying that Gao Xin Retail (06808) "outperform industry" rating, profit forecast remained unchanged, because it is in the profit turnaround period, Pamp E valuation is volatile, using Pamp S valuation. Considering the recovery of passenger flow after the epidemic and the transformation and upgrading of Gao Xin, the profit continued to improve, and the target price was raised by 54% to HK $3.7.

The report said that since the beginning of this year, the company's offline passenger flow has gradually improved, the online business has continued to grow rapidly, and the advantages of omni-channel operation have been continuously consolidated. At the same time, actively promote offline store restructuring, home business efficiency, fresh supply chain construction and new business type expansion, the pace of transformation and upgrading industry leading, the bank believes that it is expected to drive its profitability to repair steadily, and continue to expand market share.

The bank mentioned that Gao Xin Retail positioned Runfa as an offline experience center plus an online compliance center to support omni-channel operations.1) store reconstruction attracts offline reflux:Define the positioning of the customer base, simplify SKU, optimize the functional area and moving line design of stores, and enhance the consumer experience. The number of customers in the first half of the transformation of benchmarking stores has increased by 20%. The bank expects that with the promotion of the model, offline backflow is expected to lead to profit repair of stores.2) improve the efficiency of online business:At present, about 80% of the stores in Darunfa have installed suspension chains, and the transformation of stores is committed to realizing the quick pick-up of multi-platforms and supporting the increase of online order carrying capacity of stores.3) Construction of fresh warehouse:The company FY23 accelerates the construction of fresh processing warehouse and has achieved the coverage of most stores, which is conducive to improving gross profit through supply chain standardization. With the release of the above results, the bank expects that the company's FY23 is expected to reverse losses after excluding store impairment, followed by a gradual improvement in profit margins.