Furui: Raises target price for GUMING(01364) to HK$36.6, franchisee profits healthy to support long-term growth.

Furui released a research report stating that the management of GUMING (01364) expects steady growth this year, with the number of new store openings roughly the same as in 2025, same-store sales growth at least stable, and gross profit margin stable. The management believes that the reduction in subsidies from food delivery platforms will have a relatively limited impact on same-store sales growth, and can be offset by the growth of the coffee business, store upgrades, and new products. The recommendation remains "buy", with the target price raised from HK$31 to HK$36.6. The bank has adjusted its net profit forecast for 2026 to 2028 by 16% to 24% to reflect the improvement in gross profit margin last year. Although the industry will face a high base for store sales in the second to third quarters, especially from May to August, the bank is more confident in its prospects as franchisees have healthy profitability, which is crucial for driving long-term sustainable growth.