Macquarie Raises Price Target for Busyming to HK$592, Citing Margin Expansion

Stock News07-06

According to a research report, channel data indicates that Busyming (01768) opened approximately 5,000 new stores in the first half of 2026. The current forecast suggests the total number of new stores for the full year 2026 could reach between 6,500 and 7,000, exceeding the company's own guidance of 5,000.

It is estimated that same-store sales growth remained stable in the first half, with revenue increasing by 55% year-on-year. Consequently, the target price has been raised by 3.5% to HK$592, while the "Outperform" rating is maintained.

Focus on Profitable Growth

The report highlights that Busyming is committed to driving high-quality growth. The company's expansion into new categories such as fresh food and frozen products, coupled with successful supply chain optimization, is expected to support same-store sales and enhance store profitability.

Current forecasts anticipate a first-half gross profit margin increase of 0.7 percentage points year-on-year, with adjusted net profit growing by 64%. The net profit forecast for the 2026 fiscal year has been raised by 4.7%.

It is estimated that the compound annual growth rate for earnings between the 2026 and 2028 fiscal years will reach approximately 20%.

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