Gelonghui, November 8 | UBS released a report stating that Gaoxin retail's short-term profit performance will be dragged down by the reduction in supply chain business scale and increased competition. The company expects net losses in the medium term to end September to be between 370 million to 380 million yuan, higher than the bank's expectations of 180 million yuan. Currently, the bank estimates that it recorded a net loss for the full year of 2024, and lowered its earnings per share forecasts for 2025 and 2026 by 43% and 37% respectively. The target price was lowered from HK$4.55 to HK$2.3 million, mainly because the company reduced the scale of its supply chain business and focused on direct sales business; This year The recovery in offline traffic has fallen short of expectations; and since August, market competition has become more intense. According to the bank, it still maintains its “buy” rating, mainly because the company has a leading position in the grocery retail industry, strong execution of online strategies, and improved operating efficiency to maintain a positive outlook on the company's long-term profit growth potential. Potential short-term catalysts include a narrowing decline in same-store sales in the second half of the year and the opening of more member stores.