Goldman Sachs: Includes GUMING(01364) in its Asia Pacific Conviction Buy List, annual trading volume increases by over 20%.

Goldman Sachs has released a research report stating that GUMING (01364) will be included in the Asia Pacific "buy" list. The bank's analysts expect that GUMING's adjusted net profit will grow by over 20% year-on-year in the next two years, supported by the continuous increase in the penetration rate of ready-to-drink beverages and the expansion of market share, enabling the company to outperform the market in the consumer sector. The rating given is "buy" with a target price of HK$32. The report points out that GUMING continues to demonstrate its competitiveness, with a single store gross merchandise volume (GMV) increasing by over 20% since the beginning of the year, significantly better than other mid-priced ready-to-drink beverage brands. This is not only due to food delivery subsidies, but also attributed to the successful launch of new products and expansion of product categories (such as coffee), as well as strong execution capabilities. Market concerns about same-store sales growth after the normalization of food delivery subsidies next year have caused the stock price to fall by 23% from its high in June. However, the bank believes that steady store expansion and the addition of product categories and consumption scenarios can support the company's growth.