GUOQUAN (02517) surged more than 4%, reaching HK$10.5 by the time of writing, with a trading volume of HK$72.48 million. China Galaxy Securities noted in a research report that GUOQUAN focuses on the "at-home dining" sector, which is projected to grow to RMB1.3 trillion in 2024, maintaining a rapid expansion trend (23% CAGR from 2018-2024). Driven by demographic shifts and cost-efficiency measures, the market is expected to continue expanding.
The domestic "at-home dining" industry has entered its second phase of development, with lower-tier markets becoming the primary source of growth. Affordable frozen food retail formats are poised to replace food delivery as the next high-growth channel. Huatai Securities believes that, based on short-term projections for 2026, scenario expansion and a push into lower-tier markets will serve as effective investment catalysts for GUOQUAN.
The report highlights that GUOQUAN will enter an accelerated profitability phase starting in 2025. Compared to leading players in similar chain business models, the company demonstrates significant profit elasticity. Three clear profitability drivers—supply chain cost reduction, refined customer acquisition models, and economies of scale—are expected to boost long-term net profit margins toward 10%. Specifically, supply chain efficiency improvements could contribute 3-5 percentage points of margin expansion, while mature customer acquisition and economies of scale may add another 4-6 percentage points.
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