HSBC: Meixue Bingcheng's profit growth in 2026 is expected to slow.

HSBC analysts Lina Yan and Yimin Wang stated in a report that due to profit margin pressures and slower expansion, the profit growth of Honeymoon Dessert is expected to slow down in 2026. They noted that management this year will prioritize store-level productivity over network expansion. With the reduction in food delivery subsidies, Honeymoon Dessert plans to implement cost-cutting measures to boost dine-in traffic and stabilize online orders, which may push its gross profit margin below the target of 30%. Due to the profit margin pressure, HSBC lowered its net profit forecast for 2026 by 9.4%, and also reduced the revenue forecast for Honeymoon Dessert in 2026 due to the decrease in net new store openings in mainland China. HSBC maintains a buy rating on the stock, but has lowered its target price from 499.70 Hong Kong dollars to 455.90 Hong Kong dollars.