Nomura lowered its target price for Cafe De Coral (CDC)(00341) to HK$25.9 from HK$29.1 and maintained its "buy" rating.
The research house thinks the social unrest has affected casual dining more, given higher exposure to tourist areas and reliance on dinner. Nomura believes CDC is more defensive than other HK retailers given its lower reliance on tourists (70% of HK sales from local customers) and a more balanced store network (around two-thirds of stores in residential areas).
CDC is proactively negotiating rentals and expects 10-20% reduction in renewals; Nomura expects more visible rental benefits in FY2021 and forecasts rental cost to reduce by 4% in FY2021.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
