Glonghui, January 4 | Damo released a report lowering the target price of Haidilao from HK$26 to HK$20, and the target price of Jiumaojiu from HK$19 to HK$9, all maintaining an “increase” rating. The target price for Xiabu Xiabu was lowered from HK$4.3 to HK$2.4, maintaining a “in sync with the market” rating. The bank believes that the current pressured valuation of these shares mainly reflects macroeconomic uncertainty, but ignores the operational improvement and growth potential of individual enterprises. The bank favors Haidilao in the short term and sees the long-term value of Jiumojiu. According to the bank, social media platform search data showed that Haidilao's popularity in the last two months of last year was stronger than in June and July of last year, which is different from the market's perception of Haidilao as a mature brand. Jiumaojiu opened more than 130 Taier pickled cabbage and more than 30 Chongqing hot pot factories last year, exceeding market expectations. The overall branch network increased by 28% year on year, and more branches opened this year, which will support this year's revenue growth. Haidilao has also gradually resumed expansion. The bank also expects that Haidilao's profit margin from the second half of last year to this year will continue to exceed expectations, and its strong balance sheet indicates that there may be potential repurchases or increased dividends. The bank also indicated that Haidilao and Jiumaojiu are more attractive in terms of price-earnings ratio, and that Jiumaojiu is particularly attractive from the perspective of price-earnings growth rate (PEG) and cash flow discount model (DCF). There is a significant discount based on stock prices compared to medium-term expansion targets.