Glonghui, May 23 | Jefferies published a research report saying that Gaoxin Retail (6808.HK) has shown positive growth in same-store sales since the beginning of the year. The trend in the past two months is encouraging. The new CEO will further implement its strategy, but the bank believes that it is still too early to determine whether the current trend of same-store sales is sustainable. The bank quoted Gaoxin retail management as positive about net profit and same-store sales growth in fiscal year 2025. The bank believes that the above strategy will drive growth in same-store sales and absolute gross margin, and that boosting offline traffic will be the key, and can be achieved by providing daily low prices. Jefferies also said that due to the weak performance of Gaoxin Retail in FY2024, the pace of recovery was delayed. As a result, its net profit forecast for the 2025 and 2026 fiscal years was lowered by 31% and 13%, respectively. Furthermore, the bank noticed that the transaction price of Gaoxin Retail shares was 21% lower than the book value because the market feared that if the company's business could not resume, it would continue to suffer losses and losses. Combining the above factors, the bank raised Gaoxin's retail target price from HK$1.7 to HK$1.78, maintaining its holding rating.