HK Stock Market Move | GUOQUAN (02517) rose over 6% during trading, with a slight improvement in the restaurant industry's prosperity. Institutions predict that the peak season in Q4 will realize the expectation of opening new stores.

GUOQUAN (02517) rose more than 6% during trading hours, and as of the time of writing, it is up 5.77% at 3.31 Hong Kong dollars, with a trading volume of 41.62 million Hong Kong dollars. On the news front, CMSC pointed out that demand is improving with the recovery of the catering sector in September. Consumer spending and travel during the double festival period are relatively stable, and the catering business is showing signs of improvement. Soochow believes that GUOQUAN will open 250 new stores in the first half of 2025, with a net increase of 270 stores in townships. The company's expansion into townships aligns with the trend of consumer spending in these areas, providing township consumers with a more diverse and cost-effective product offering. Currently, there is insufficient competition in the township market supply side, and the company has a first-mover advantage and scale advantage. Additionally, based on grassroots research feedback, the township single-store model is excellent, and franchisees are willing to participate. Taking into account the supply and demand logic and research feedback, the bank believes that the company's plan to increase net stores by 1000 this year can be successfully implemented, with expectations of fulfilling the store opening expectations during the peak season in Q4.