Zhitong Financial APP learned that China Bank International released a research report saying it maintained its "buy" rating of 00520, and lowered its target price to HK $11.20. The company issued a profit warning that sales in 22 years are expected to fall 23% year-on-year to about 4.7 billion yuan, 14% less than the agency / China Bank International expected, and made a loss of about 330 million yuan, which is higher than the 190 million yuan loss expected by the agency / bank. Management believes that it is mainly due to the suspension of restaurant meals and negative operating leverage in fiscal year 22. However, due to the improvement of the company's strategy, management and cost control, the net loss in the second half of fiscal year 22 improved significantly to about 4200-62 million yuan.

The bank believes that the lower-than-expected performance is mainly due to sales performance, and driven by effective cost control and a strong rebound since the beginning of 23 years, it is still optimistic about the prospects for fiscal year 23: 1) sales in 22 years are mainly due to the reduction of operating days, and the bank believes that the impact is only one-off. 2) the weakness in sales was mainly concentrated in November / December 2002, when the same-store sales of Yanchu recorded a decline of about 27% and 55% respectively, while those recorded a decline of about 20% and 55% respectively. This is far worse than the 17% decline in the same store from July to October and the 14% decline in the same store.

In addition, 3) the company has made excellent reforms in the second half of 22 years. Although the decline in same-store sales is similar to that in the first half of the year, the net profit margin has successfully narrowed to only-2.6% (- 12.8% in the first half), thanks to better gross margins and better cost control. 4) with a strong rebound in sales since the beginning of 23 years, the same-store sales growth has risen to 36% in January / February and 10% in January / February, thanks to a better turnaround rate (2.3 / 2.2 in January / February and 2.2 / 2.2 in January / February, up from 1.6 / 1.8 and 2 in January / February). Times / 2.2 times). In addition, the performance of the Hong Kong division has also improved significantly, and the turnaround rate has also increased from 3 times in January 23 to 4.2 times in February 2003, and the performance continues to be strong.