Huatai Securities: "Buy" rating given to Guming, company's operating performance in the first half of the year is impressive.

Huatai Securities issued a research report stating that benefiting from subsidies for food delivery, accelerated introduction of new products, and optimization of the competitive landscape, in the first half of this year, Guming's operating performance was outstanding, with revenue growing faster than the total amount of goods traded annually. This was mainly due to an increase in equipment procurement volume and a higher ToB sales ratio for certain core product categories. The firm believes that subsidies for food delivery channels, extended operating hours for some stores, and the introduction of coffee products in some stores are expected to increase the per-store cup volume and average store GMV. It is expected that in the second half of this year and in 2026, with further enrichment of coffee SKUs and an increase in the number of stores equipped with coffee machines, even if food delivery subsidies decrease, the company will demonstrate strong operating resilience. Taking into account the company's current ability to open stores and profitability, a 30x price-earnings ratio is given to the company for 2026, with a target price of 34.57 Hong Kong dollars, and a rating of "buy".