STOCKS | HSBC Cuts Guming Target Price 7% but Keeps Buy Rating

HSBC cut its target price for Guming (01364.HK) by 7% to HK$27.1 from HK$29.1, while maintaining a “buy” rating. According to Jin10, HSBC said it believes the company’s earnings revision cycle may improve in 2027 after a full adjustment to delivery subsidies, supported by what it described as a healthy single-store economics model for franchisees. HSBC said demand for freshly made beverages remained strong, and it expected store expansion to regain momentum in 2027, creating the possibility of a more favorable earnings revision cycle. HSBC estimated that by the end of 2026, Guming would have 15,554 points of sale.