HK Stock Market Move | GUMING (01364) surged more than 13%, with both revenue and net profit seeing a simultaneous increase last year. The annual growth rate of the number of stores reached 10%.

GUMING (01364) rose more than 13%, as of the time of writing, it rose by 13.15%, closing at HK$18.76, with a turnover of HK$78.1354 million. On the news front, GUMING recently announced its performance for 2024, with revenue of approximately RMB 8.791 billion, a year-on-year increase of 14.5%; gross profit of approximately RMB 2.687 billion, a year-on-year increase of 11.8%; net profit attributable to the parent company of RMB 1.4785 billion, a year-on-year increase of 36.9%; EPS was RMB 0.71. As of December 31, 2024, the company's store network covers over 200 tier-level cities in China, including 9,914 stores, an increase of 10.1% from the 9,001 stores as of December 31, 2023. Goldman Sachs pointed out that it is expected that GUMING will achieve a strong profit recovery in 2025, with net profit increasing by 28% year-on-year, and sales revenue increasing by 22%. This growth is attributed to the re-acceleration of store expansion (net increase of 2,200 stores by the end of 2025, totaling 12,100 stores), increase in Gross Merchandise Volume (GMV) per store (1.7% year-on-year growth in the second quarter of 2024 due to a low base, as well as optimized regional layout and the introduction of new products such as coffee), and improvement in profit margin (cancellation of franchisee subsidies and operational leverage). In addition, GUMING announced that it will distribute special dividends of over RMB 2 billion by the end of 2025, with a dividend yield of 6%; the company plans to maintain a dividend payout ratio of no less than 50% in the future.