Bank of America: The number of GuMing stores opened is lower than expected, target price reduced to 30 Hong Kong dollars.

Bank of America Securities has released a report stating that due to the lower than expected number of stores opened, the earnings per share forecast for Gu Ming in 2026/2027 has been lowered by 7%/8%. The target price has also been reduced from 35 Hong Kong dollars to 30 Hong Kong dollars, while maintaining a "buy" rating. Channel research shows that Gu Ming added around 800 new stores in the first half of 2026, far below the annual guidance of over 3000. The bank predicts a total of around 2000 new stores for the year. The bank believes that same-store sales growth in the first half of 2026 will remain resilient, reaching mid-single digit growth, and is expected to achieve the flat annual guidance for the entire year; it is expected that revenue and adjusted core net profit in the first half of 2026 will increase by over 35%/40% respectively.