ZHOU HEI YA: 2025 Full-Year Consensus Revenue Forecast at RMB2.42–2.73 Billion, YoY Growth of -1.2% to 11.2%

1. What are the full-year performance expectations for ZHOU HEI YA? As of November 21, 2025, according to quarterly performance forecast data: - The company’s full-year consensus revenue is projected at RMB2.42–2.73 billion, representing year-on-year growth of -1.2% to 11.2%. - Full-year consensus net profit is forecasted at RMB140–213 million, up 42.6%–116.6% YoY. - Adjusted net profit is expected to reach RMB183–186 million. Investors should monitor whether actual results exceed expectations upon financial disclosures.

2. How do analysts view ZHOU HEI YA? In 1H25, same-store sales improved, while packaged food drove rapid growth in other income. 1) **Store Performance**: The company continued its strategy of enhancing store quality and focusing on per-store revenue. The total number of stores decreased by 167 YoY to 2,864, with self-operated stores down by 18 and franchised stores down by 149. Average per-store revenue (calculated as store revenue divided by the average number of stores in 1H25) rose by 12% for self-operated stores and 14% for franchised stores YoY. 2) **Other Income**: Primarily driven by packaged food distribution, other income grew 27.5% YoY to RMB70 million in 1H25, indicating steady development in this segment. 3) **Gross Margin**: Improved by 3.3 percentage points YoY to 58.6%, attributed to lower raw material costs and better store quality. Overall, 1H25 net profit margin reached 8.8%, up 6.2 percentage points YoY and 3.3 percentage points sequentially.

For 2H25, the company will continue optimizing store quality, refining products, and expanding emerging channels, which is expected to drive further scale growth. 1) **Store Upgrades**: Focus remains on operational efficiency, including renovations, professional service management, and leveraging private membership programs, takeaway partnerships, and live-streaming to convert online traffic into offline sales. 2) **Packaged Food Expansion**: Building on 1H25 performance, ZHOU HEI YA will refine product-channel alignment for supermarkets, membership stores, snack retailers, and convenience stores, accelerating growth in emerging channels through 2026.

Earnings forecasts for 2025 and 2026 remain largely unchanged, with a target price of HKD3.0. The current share price implies 24.7x/22.3x 2025/2026 P/E, while the target price corresponds to ~32x/29x.

**Risk Warning**: The data or cases provided are for reference only and should not serve as future investment guidance. Stock investments carry risks, including market volatility, company performance, and policy changes. Investors should conduct thorough research and assess risk tolerance before making decisions.