Daiwa: Expects stock price of Ninebot to fall in the next 30 days, with a target price lowered to 2.1 Hong Kong dollars.

Morgan Stanley released a research report, lowering the earnings per share forecast for Tsui Wah for the years 2025 to 2027 by 9%, 6%, and 10% respectively, mainly reflecting weaker demand than expected from the beginning of the year until now. Starting from the second quarter of this year, intensified price competition among delivery platforms has put further pressure on the dine-in demand in the overall food and beverage market. The bank also lowered its revenue forecast for 2025 to 2026 by 13% to 14%, and for 2027 by 10%. Considering the difficult operating environment, the bank expects the company to strengthen cost control, including closing underperforming stores and further reducing headquarters expenses. The bank lowered its target price from HK$2.3 to HK$2.1, maintaining a "reduce" rating. The bank also expects the company's stock price to fall within the next 30 days, as the Hang Seng Index recently announced the removal of Tsui Wah from the Hang Seng Composite Index starting on September 8, which means the stock will be removed from the Hong Kong Stock Connect range.