Understanding the Market | GUOQUAN rose over 7% again, with both store openings and net profit margin improvements being realized. Institutions expect it to achieve its annual net increase in store targets ahead of schedule

Zhitong
2025.10.31 03:46
portai
I'm PortAI, I can summarize articles.

GUOQUAN's stock price rose over 7% again, up 6.93% as of the time of writing, at HKD 3.86, with a trading volume of HKD 90.5488 million. The company released its business situation for the third quarter of 2025, reporting a net increase of 361 new stores, a year-on-year increase of 98%, bringing the total number of stores to 10,761. Soochow Securities Co., Ltd. expects the company to achieve its annual target of a net increase of 1,000 stores ahead of schedule, with the core operating net profit margin rising to 3.6%. Performance continues to exceed expectations, with a valuation of less than 20X in 2026, providing a margin of safety

According to Zhitong Finance APP, GUOQUAN (02517) has risen over 7% again, and as of the time of writing, it is up 6.93%, priced at HKD 3.86, with a transaction volume of HKD 90.5488 million.

In terms of news, recently, GUOQUAN released its latest business situation for the third quarter of 2025. Benefiting from the guidance of the "Community Central Kitchen" strategy, the group has steadily expanded its instant retail stores, with a net increase of 361 stores in the third quarter of 2025, a year-on-year increase of 98%, bringing the total number of stores to 10,761 as of September 30, 2025.

Dongxing Securities pointed out that considering Q4 is generally a peak season for store openings, it is expected that the number of new stores will be greater than in Q3, and the company is likely to achieve its goal of net adding 1,000 stores this year ahead of schedule. Based on median calculations, the company's core operating net profit margin for Q3 2025 is 3.6%. Additionally, it can be inferred that the core operating net profit margins for Q3 and Q4 2024 will be 2.8% and 6.6%, respectively; for Q3 2025, compared to the same period last year, the core operating net profit margin has increased by 0.8 percentage points, and the logic behind the increase in net profit margin has been continuously validated this year.

The firm stated that the company's same-store sales have continued to improve this year, and on this basis, the motivation for franchisees to open stores has increased, with the store model in towns and villages having taken shape and possessing strong competitiveness; based on the performance from Q1 to Q3, this year's store opening target is worry-free. The expansion on the revenue side, combined with continuous optimization of the supply chain and the release of scale effects, has also successfully realized the logic of improving net profit margins. The company's performance continues to exceed expectations, and currently, the company's valuation for 2026 is less than 20X, providing a margin of safety, and it continues to be a key recommendation

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.