CICC Keeps "Outperform" Rating on Guming with HK$29.50 Target Price

Deep News10-21

CICC released a research report maintaining its "Outperform" rating on Guming (HKEX: 01364), with a target price of HK$29.50, corresponding to 19x and 16x price-to-earnings ratios for 2026 and 2027, implying 38% upside from the current share price.

The investment bank believes that the company's per-store operations and franchisee profits continue to improve, with high certainty around a long-term store expansion potential of approximately 30,000 outlets, and store openings expected to accelerate in 2027, while the growth expectations implied by the current valuation may already be on the low side.

Recently, CICC attended Guming's investor day communication. The company's per-store operations and franchisee profits continued to improve, while the full-year net store opening target was further revised downward.

The investment bank holds that per-store quality takes priority over store count, and the company's long-term store expansion potential of approximately 30,000 outlets carries high certainty, with store openings expected to accelerate in 2027.

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