The analyst rating from CICC for CHABAIDAO (02555.HK) is maintained at "Outperform" due to several key factors. The company is currently undergoing a significant adjustment period expected to last until 2025, with initial positive results already visible and further improvements anticipated in 2026. CICC notes that the company is recovering franchisee subsidies and enhancing store profitability through various measures, including standardized product offerings and improved operational efficiencies. Additionally, the company aims for a dividend payout ratio of 60-80% over the next three years, which corresponds to a dividend yield of 5.4-7.2%, indicating strong investment value. Despite a decline in sector valuation, CICC has adjusted its target price down by 23% to $9.3, reflecting a potential upside of 31%.
