Goldman Sachs added GUMING (01364.HK) to its Asia Pacific Conviction List with a Buy rating due to expectations of over 20% year-over-year growth in adjusted net profit over the next two years. This growth is anticipated to be driven by the increasing penetration of freshly-made drinks (FMD) and market share gains, allowing GUMING to outperform the consumer sector. The company's strong performance is highlighted by a more than 20% year-to-date increase in single-store GMV, surpassing other mid-priced FMD brands. Contributing factors include food delivery subsidies, successful new product launches, expansion into new product categories (like coffee), and strong execution capabilities. Goldman Sachs believes that ongoing store expansion and diversification of product offerings will further support GUMING's growth, leading to a target price of $32.
