Sinolink: Maintain a "buy" rating on GUOQUAN (02517) with stable expansion of township stores.

Sinolink released a research report stating that as GUOQUAN (02517) community stores upgrade to large store models, the store network continues to expand, and market share is expected to further increase. The company is expected to achieve a net profit attributable to shareholders of 631 million yuan, 793 million yuan, and 940 million yuan in 2026, 2027, and 2028, respectively, with corresponding PEs of 16.33, 13.01, and 10.96X. The "buy" rating is maintained. Sinolink's main points are as follows: Events On April 14, 2026, the company disclosed the latest business situation in the first quarter of 2026, expecting revenue of 2.2-2.3 billion yuan and core operating profit of 185-205 million yuan, year-on-year growth of about 31.3%-37.2% and 45.3%-61.0%, respectively. Thorough implementation of the "community central kitchen" strategy, steady expansion of township store network As of the end of March 2026, the company had a total of 11,758 stores, a net increase of 1,637 compared to the same period last year. The performance in township markets was outstanding, with a net addition of 113 stores, bringing the total number of township market stores to 3,123. Through the organic combination and "GUOQUAN flash purchase" mode sold by Wuxi Online Offline Communication Information Technology Co., Ltd., the company has enhanced consumer shopping experience and strengthened store coverage and penetration rate. Diversification of product structure layout, organizational evolution to improve operational efficiency By leveraging diverse meal product combinations and multi-channel, multi-scenario layout, the company has effectively met the diverse needs of consumers. At the same time, the company has promoted organizational evolution with regional operations as the core, significantly boosting the combat effectiveness of frontline staff, and is expected to significantly improve the company's operational efficiency in the long term. Benefiting from stable operational performance and increased government subsidies, the company has achieved core profit growth far exceeding revenue growth while rapidly expanding, demonstrating strong operational resilience and performance elasticity. Deepening the sinking market, implementing the brand mindset of "GUOQUAN for eating at home" The company is expected to successfully implant the brand mindset into consumers' daily cooking scenarios, precisely matching the growing demand for high-quality, convenient ingredients in the sinking market. With the instant delivery capability of "GUOQUAN flash purchase," the brand's community convenience attribute is further strengthened, and consumer stickiness is expected to continue to increase. With SKU iteration and multi-scene penetration, brand loyalty is converted into repeat purchase momentum, contributing long-term endogenous growth momentum to the company. Risk warning Geopolitical risks causing product fluctuations; intensified competition from competitors in the sinking market; capital return on store expansion lower than expected.