UBS has released a research report highlighting that GUMING (01364) reported a 47% year-on-year increase in revenue and a 110% surge in net profit for the previous year, reaching RMB 12.914 billion and RMB 3.109 billion, respectively, surpassing market expectations. During the period, the gross profit margin expanded by 2.4 percentage points to 33%, driven by economies of scale, though partially offset by an increased proportion of equipment sales. The firm maintains a "Buy" rating on GUMING and has raised its target price from HK$31.15 to HK$35.7. Looking ahead to 2026, management anticipates that the net increase in store numbers will be broadly similar to 2025 levels, with a greater focus on relocating underperforming outlets and renovating existing stores. Additionally, management expressed confidence in sustaining healthy same-store sales growth, noting that the first quarter of this year already recorded a double-digit year-on-year increase in same-store sales. Management also aims to maintain long-term gross margin stability while prioritizing franchisee profitability.