Huaxi: maintains "buy" rating on GUOQUAN (02517) with impressive profit growth.

Huaxi released a research report stating that, based on the latest performance forecast, the forecast for GUOQUAN's (02517) operating income for the years 2025-2027 has been adjusted from 76.46/90.83/108.20 billion yuan to 78.03/91.83/108.2 billion yuan. The forecast for EPS for the years 2025-2027 has been raised from 0.16/0.19/0.24 yuan to 0.16/0.20/0.25 yuan. The corresponding valuation on January 30, 2026, at 4.26 Hong Kong dollars is 24/19/15 times, maintaining a "buy" rating. The main points of Huaxi are as follows: The company has released a positive profit report. It is expected that the revenue in 2025 will reach 77.5-78.5 billion yuan, with a year-on-year increase of 19.8%-21.3%; the net profit will reach 4.43-4.63 billion yuan, with a year-on-year increase of 83.7%-92%; and the core operating profit will be 4.5-4.7 billion yuan, with a year-on-year increase of 44.8%-51.2%. Vigorously develop the township market to drive rapid revenue growth. In 2025, the company continued to vigorously develop the township market. The characteristics of low rent and high potential in the township market are highly compatible with GUOQUAN's positioning of "community central kitchen", becoming the main source of income expansion. The company's total revenue in 2025 is expected to increase by 19.8%-21.3% to reach 77.5-78.5 billion yuan. In terms of store expansion, as of the end of 2025, GUOQUAN had 11,566 stores, with a year-on-year increase of 1,416 stores, including 805 new stores in Q4, expanding at a pace that matches the company's market penetration strategy, providing a solid channel foundation for revenue growth. In terms of store operations, the company has achieved operational efficiency upgrades through multidimensional measures, optimizing store efficiency by expanding product categories, launching seasonal scene set meals, and other activities to increase average customer spending and repeat purchase rate; at the same time, deepening member operations, the company's membership has recently exceeded 60 million, and through a series of membership operations and stored-value business, user stickiness has further strengthened; as a result, the company'...