According to a report published by UBS, in an environment where the economy is weak, it is expected that Hendry's same-store sales growth will continue to slow to 8-10% in May and June. Net profit in the first half of the year is expected to fall by 7%, and it is unlikely that there will be a U-turn recovery in the second half of the year. The full-year same-store sales growth forecast was lowered from the original 13% to 8%. According to UBS, sales of the company's middle- and low-end brands increased by 15-20%, but there was almost no growth in high-end brands. It is estimated that gross margin in the first half of the year could reach 24.8% and 24.9% for the whole year. UBS believes that such gross margin can be maintained because the bargaining power of middle- and low-end brand customers is low. UBS said it expects the company's operating expenses as a share of sales to 15.3% from 14.9% last year, lower this year's earnings per share forecast by 7%, and lower the target price to 2.98 yuan to maintain its “buy” rating.