Guosen Securities: Maintains a "Outperform" rating on Little Vegetable Garden (00999.HK) as the improvement in turnover rates preliminarily validates the strategy.

According to the Zhitong Finance APP, Guosen Securities released a research report stating that considering Little Garden (00999.HK) remains a leading brand in the efficiency of operation within the public-friendly Chinese dining sector, and the interim dividend payout ratio reaches 86%, the firm maintains its forecast for parent net profit in 2026-2028 at 610 million/700 million/800 million yuan, corresponding to a PE of approximately 14/12/11x, and maintains an "outperform the market" rating. In the first half of 2026, the company achieved revenue of 2.903 billion yuan, a year-on-year increase of 7.0%; parent net profit was 289 million yuan, a year-on-year decrease of 24.2%. In terms of revenue structure, dining-in business revenue was 1.945 billion yuan, a year-on-year increase of 18.1%, while takeaway business revenue was 945 million yuan, a year-on-year decrease of 10.6%. Their revenue shares were 67.0% and 32.6%, respectively, showing a significant adjustment in structure compared to the same period in 2025 (60.7%/39.0%), with a strategic focus shifting toward dining in. During the reporting period, the companys board has resolved to distribute an interim dividend totaling 250 million yuan, with an interim payout ratio of 86.3%.