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<Research> Jefferies Raises TP for GU MING (01364.HK) to HKD36.6; Franchisee Profitability Supports Long-term Growth
Recommend 6 Positive 3 Negative 2 |
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Jefferies published a research report stating that the management of GU MING (01364.HK) has guided for stable growth this year, with the number of new store openings roughly similar to 2025, and same-store sales growth at least flat, with stable gross margins. The management believes that the reduction in subsidies from delivery platforms has a relatively limited impact on same-store sales growth, which can be offset by growth in the coffee business, store upgrades, and new products. The firm raised its net profit forecasts for 2026 to 2028 by 16% to 24% to reflect the improvement in gross margins last year and lower-than-expected pressure on same-store sales growth this year, despite the reduction in delivery platform subsidies. Although the industry will face a high base of store sales in the second to third quarters, especially from May to August, the firm is more confident in its outlook due to the healthy profitability of franchisees, which is crucial for driving long-term sustainable growth. The "Buy" rating is maintained, and the target price is raised from HKD31 to HKD36.6. (ss/a) 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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