Jefferies has issued a research report indicating that Cafe de Coral Group (00341) is executing its multi-year transformation plan for the second half of fiscal 2026 in line with expectations. The firm anticipates that same-store sales declines will narrow as profitability improves, while the Greater Bay Area business is set to benefit from stronger delivery penetration. As a result, the target price has been lifted from HK$6.6 to HK$6.9, with a maintained "Buy" rating.
The brokerage now projects a net profit of HK$258 million for fiscal 2027, which is 3.6% higher than its previous estimate. This revision primarily reflects margin improvements driven by the streamlining of Hong Kong's store network, alongside enhanced profitability at Greater Bay Area outlets.