Huaxing Securities: Maintains XIABUXIABU "Hold" Rating with a Target Price of HKD 1

Huaxing Securities maintains a "Hold" rating on XIABUXIABU, with a target price of HKD 1. It is expected that the revenue for 2025-27 will be HKD 4.04 billion, HKD 4.16 billion, and HKD 4.25 billion, respectively, with a net loss attributable to the parent company of HKD 145 million and HKD 66 million for 2025/26, and a net profit of approximately HKD 2.4 million in 2027. The number of XIABUXIABU stores is expected to bottom out at 760 in 2024, and if there is a subsequent net increase, development should be monitored. The number of Coucou brand stores is still shrinking, and its subsequent development needs attention, with potential investment opportunities to be observed