HK Stock Market Move | GUMING (01364) rises by more than 3%, JP Morgan increases company's net new store opening forecast for the next two years.

GUMING (01364) rose by over 3%, and as of the time of writing, it has risen by 2.82% to 29.18 Hong Kong dollars, with a turnover of 669.327 million Hong Kong dollars. On the news front, JP Morgan released a research report pointing out that GUMING management expects organic same-store transaction volume (GMV) to decline by 5% to flat year-on-year in 2026; if the penetration rate of new products such as breakfast accelerates, there is an opportunity for a 5% annual increase. At the same time, management has a positive outlook on franchise business network. The bank has raised its net store opening forecast for 2025 and 2026 from 3,100 and 3,300 stores to 3,300 and 3,500 stores, expecting a 26% annual increase in the number of stores in 2026. The bank estimates that GUMING's core net profit in 2025 will reach 2.3 billion yuan, a 51% annual increase. With the net addition of 3,500 stores in 2026 and a slight decrease in average selling price, revenue is expected to grow by 21% annually. Due to the operating leverage effect expected to offset slight gross profit margin pressure, the bank expects the net profit margin to remain stable, with core earnings reaching 2.8 billion yuan in 2026. The bank has raised its earnings per share forecast for GUMING from 2025 to 2027 by about 1%, raising its target price from 35 Hong Kong dollars to 36 Hong Kong dollars, giving it a "buy" rating and continuing to be the industry's top pick.