Guotai Hantong: Maintains "Buy" rating on Wei Zhi Xiang (605089.SH) with a target price lowered to 28.5 Chinese Yuan.

According to the Wise Finance and Economics app, Guotai Haitong released a research report stating that considering the short-term rise in beef and other costs, the EPS forecast for Weizhixiang (605089.SH) for 2026-2027 has been lowered to 0.73 (-0.15) and 0.89 (-0.16) yuan, with an additional forecast for 2028 of 1.07 yuan. Referencing comparable companies, the elasticity of performance recovery in the company's business model primarily focused on C-end sales is expected to be more apparent compared to comparable companies, considering the recovery in demand and cost improvement. Additionally, the company's low penetration rate in C-end prefabricated meal business and relatively large growth space give the company a 39X PE for 2026, lowering the target price to 28.5 RMB (previously 30.8 RMB) and maintaining a "hold" rating on the company.