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<Research> UBS Raises TP of GU MING (01364.HK) to HKD35.7 as Last Year's Results Exceeded Expectations
Recommend 7 Positive 3 Negative 1 |
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UBS released a research report stating that GU MING (01364.HK) saw its revenue and net profit grow by 47% and 110% YoY last year, reaching RMB12.914 billion and RMB3.109 billion, respectively, surpassing market expectations. During the period, the gross profit margin expanded by 2.4 ppts YoY to 33%, driven by economies of scale, partially offset by an increased proportion of equipment sales. The firm maintains a "Buy" rating on GU MING, raising the target price from HKD31.15 to HKD35.7. Looking ahead to 2026, management expects the net increase in the number of stores to be roughly similar to the 2025 level, with a greater focus on relocating underperforming stores and renovating existing ones. Additionally, management remains confident in maintaining healthy same-store sales growth. Despite reduced delivery subsidies, same-store sales recorded a double-digit YoY increase in 1Q26. Management also aims to maintain stable long-term gross profit margins while prioritizing franchisee profitability. (ss/u) AASTOCKS Financial News Website: www.aastocks.com Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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