Guoquan Food (Shanghai) Company., Ltd. Class H (2517) has received a new Buy rating, initiated by CMB International Securities analyst, Walter Woo.
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Walter Woo has given his Buy rating due to a combination of factors that highlight Guoquan Food’s strong market position and growth potential. The company stands out as the largest provider of at-home meal solutions in China, boasting a diverse product range that caters to various dining preferences. This extensive portfolio, combined with a robust retail presence through over 10,000 stores, positions Guoquan well for continued market leadership.
Furthermore, Guoquan’s innovative Consumer-to-Factory model enhances its competitive edge by ensuring quick delivery, high quality, and cost-effective pricing, which appeals particularly to young consumers in lower-tier cities. The company’s commitment to product innovation and strategic channel expansion, including leveraging platforms like Douyin and enhancing its membership program, supports its projected strong sales and profit growth. These strategic initiatives, alongside a vertically integrated supply chain and efficient cost management, underpin the positive outlook and justify the Buy rating with a target price of HK$ 4.80.
According to TipRanks, Woo is a 3-star analyst with an average return of 3.4% and a 57.14% success rate. Woo covers the Consumer Cyclical sector, focusing on stocks such as Xtep International Holdings, Green Tea Group Limited, and Li Ning Company.