Lates News

Morgan Stanley released a research report lowering their earnings per share forecast for 999 Group in 2025 to 2027 by 9%, 6%, and 10% respectively, mainly reflecting weaker-than-expected demand from the beginning of the year. Starting from the second quarter of this year, intensified price competition among delivery platforms has put further pressure on the dine-in demand of the overall catering market. The bank also reduced its revenue forecast for 2025 to 2026 by 13% to 14% and by 10% for 2027. Considering the challenging operating environment, the bank expects the company to strengthen cost control measures, including closing underperforming stores and further cutting headquarters expenses. The bank lowered its target price from 2.3 Hong Kong dollars to 2.1 Hong Kong dollars and maintained a "reduce" rating. The bank also predicts that the company's stock price will decline in the next 30 days as the Hang Seng Index recently announced the removal of 999 Group from the Hang Seng Composite Index starting from September 8, meaning the stock will be excluded from the Hong Kong Stock Connect range.