Core Viewpoint - Dongwu Securities has raised its profit forecast for Guoquan (02517) for 2025-2027, expecting net profit to reach 440 million, 560 million, and 680 million yuan respectively, reflecting year-on-year growth of 93%, 27%, and 21% [1] Group 1 - The company reported a net increase of 361 stores in Q3 2025, bringing the total number of stores to 10,761 by the end of Q3 2025 [1] - Revenue for Q3 2025 is projected to be between 1.85 billion and 2.05 billion yuan, representing a year-on-year increase of 13.6% to 25.8% [1] - Core operating profit for Q3 2025 is expected to be between 65 million and 75 million yuan, showing a year-on-year growth of 44.4% to 66.7% [1] Group 2 - The company is likely to exceed its target of adding 1,000 new stores this year, as Q4 is typically a peak season for store openings [1] - The core operating net profit margin for Q3 2025 is calculated to be 3.6%, with an expected increase in core operating net profit margins for Q4 2024 and Q3 2025 to 2.8% and 6.6% respectively [1] - The logic behind the improvement in net profit margins has been consistently validated throughout the year [1] Group 3 - The company has shown continuous improvement in same-store sales this year, with increased motivation for franchisees to open new stores [2] - The store model in rural areas has become established, providing strong competitive advantages [2] - The ongoing expansion of revenue, combined with supply chain optimization and the release of scale effects, has led to a successful realization of improved net profit margins [2]