Yamato: Raises target price for Kosmin to 36 Hong Kong dollars, reaffirms "buy" rating.

Yamato Securities has issued a research report stating that it has raised the target price of Komintang from 35 Hong Kong dollars to 36 Hong Kong dollars, giving it a "buy" rating, corresponding to a forecasted P/E ratio of 22 times in 2026. The firm stated that subsidies from Meituan and JD have returned to pre-food delivery war levels, and Taobao is also reducing subsidies. Although investors are concerned about future sales in the coming months, management has pointed out that measures such as store model transformation, increased coffee sales, and extended business hours will drive steady sales growth in 2026. The firm believes that the subsidy reduction provides Komintang with a golden opportunity to integrate the mid-priced market, as its franchisees' actual collection rate and profitability are expected to be better than industry peers.