HK Stock Market Move | GUOQUAN (02517) up over 4% during trading hours, company recommends adopting dividend policy, 26-year store opening and same-store sales exceed expectations.

GUOQUAN (02517) increased by over 4% during trading, as of the time of writing, it has increased by 3.96%, at 4.73 Hong Kong dollars, with a turnover of 98.041 million Hong Kong dollars. On the news front, on April 2, GUOQUAN announced to regulate the company's profit distribution behavior, establish a scientific, sustainable, and stable shareholder return mechanism, balance shareholders' current income with the long-term development of the company, effectively protect the legitimate rights and interests of all shareholders. The board of directors of the company has approved the company's dividend policy as of the date of this announcement. The dividend policy will only take effect after being approved by the shareholders of the company at the 2025 annual general meeting scheduled for April 29, 2026. Once the company officially adopts this dividend policy, the company will declare and distribute dividends to shareholders based on it, allowing shareholders to share in the company's profits. Zhongjin released a research report stating that GUOQUAN's performance in 2025 meets the bank's expectations. In 2025, the company's net increase in the number of stores was 1,416, reaching a total of 11,566 stores (including 3,010 town stores). In 2025, the company paid dividends of 290 million yuan (dividend ratio about 67%), and repurchased shares worth 180 million yuan. GUOQUAN is expected to have a net increase of over 2,934 stores in 2026 (the bank predicts that the town market and the South China region will be the focus), with a year-on-year closure rate of -1ppt to below 4%. In terms of the new model, the bank is paying attention to the effects of GUOQUAN's small stir-fry and camping store pilot projects. The bank believes that considering the better-than-expected store openings and same-store sales guidance of GUOQUAN, it has raised the core net profit attributable to mothers for 2026-2027 by 4% and 4% to 572 million yuan and 686 million yuan.