Bank of America Securities: Very busy (01768) Target price to HK$550, interim results far exceeded expectations

The Zhitong Finance App learned that Bank of America Securities released a research report saying that the 2026 and 2027 adjusted earnings forecasts per share were 36% and 33%. The target price was raised by 10% to HK$550 from HK$500, maintaining the “buy” rating, and continuing to be busy winning structural growth in the Chinese consumer sector.

Bank of America said that Ming Ming was very busy. The results for the first half of this year far exceeded expectations. Revenue and adjusted net profit were 6% and 37% higher than market consensus, respectively. Revenue during the period increased 60% year over year, mainly due to the acceleration of store expansion, adding 4,500 new stores to a total of 26,400; adjusted net profit increased 137% year over year, and gross margin expanded 2.2 percentage points to 11.5%. Management raised the target of opening new stores for the full year of 2026 to at least 8,000, higher than the target of 5,000 stores at the beginning of the year, and expects strong gross margins to continue until the second half of the year. The Group expects the total commodity transaction value (GMV) to double to RMB 200 billion from 2025 to 2028, and aims to gradually increase the dividend payout ratio.