HK Stock Market Move | GUOQUAN (02517) rose more than 4%, the company's "home meal" market will continue to expand in the long term, scene expansion and efforts to penetrate the market will become an effective catalyst.

GUOQUAN (02517) rose more than 4%, as of the time of writing, up 4.07% to HK$10.5, with a turnover of HK$72,479,400. China Galaxy Securities released a research report stating that GUOQUAN's main business is "home meal" services, with a market space of approximately RMB 1.3 trillion in 2024, showing a high-speed growth trend (compound annual growth rate of 23% from 2018 to 2024). Due to factors such as population structure and cost reduction and efficiency improvement, the market size is expected to continue expanding. The domestic "home meal" industry has entered the second stage of development, with the sinking market as the main source of growth, and the retail format of cost-effective frozen food is expected to become the second high-speed growth channel after takeout. Huaan believes that based on the short-term prospects for 2026, scene expansion and focus on the sinking market will serve as effective investment catalysts for GUOQUAN. The bank points out that starting from 2025, GUOQUAN will enter a phase of accelerating profit improvement, with significant profit elasticity compared to similar chain businesses. The future profit improvement paths are clear, with the potential to impact a net profit margin ceiling of 10% in the long term, including a 3-5 percentage point optimization space from supply chain efficiency, and a 4-6 percentage point optimization space from mature traffic diversion models and scale effects.