Goldman Sachs: Gu Ming (01364.HK) issued convertible bonds to provide funds for operations and was added to the list of convictions to buy.

According to the Wise Wealth APP, Goldman Sachs issued a research report stating that Gu Ming (01364.HK) announced the proposed issuance of a one-year zero-coupon convertible bond with a total value of HK$1.96 billion. At the same time, it plans to repurchase approximately 34 million shares at a price of HK$20.38 per share. It is expected that the issuance of convertible bonds can provide support for domestic and overseas business operations and capital market activities. Although the issuance of convertible bonds may bring potential dilution effects, the share buyback will support the stock price and offset the dilution effect through share cancellation. Gu Ming's stock price has fallen by 25% this quarter, with Goldman Sachs attributing this mainly to concerns in the market about high same-store sales growth base, slowing store expansion, and weak consumer sentiment. Goldman Sachs still gives Gu Ming a "buy" rating (continuing to list it on the conviction buy list) with a target price of HK$36.