CICC believes that GUMING's strategy of issuing zero-coupon convertible bonds alongside a share repurchase plan will help stabilize the share price and enhance shareholder returns. The low cash funding cost of the bonds allows for flexible cash deployment, and the repurchase will mitigate dilution from share conversion. CICC maintains an Outperform rating with a target price of HKD36, expecting the company to focus on improving store quality in the future.
