Jefferies: Raising the target price of Big Family Music Group (00341) to HK$6.9 to maintain a “buy” rating

The Zhitong Finance App learned that Jefferies released a research report saying that the current implementation schedule is in line with the plan for the second half of the 2026 fiscal year. It is expected that as profitability improves, the decline in same-store sales will narrow. At the same time, the Greater Bay Area business will benefit from a stronger takeout penetration rate; the target price was raised from HK$6.6 to HK$6.9, maintaining a “buy” rating.

The bank currently expects the company's net profit of HK$258 million for the 2027 fiscal year, which is 3.6% higher than the previous forecast. It mainly reflects the streamlining of the Hong Kong store network, which has led to improved profit margins and increased profitability of stores in the Greater Bay Area.