Core Viewpoint - Guoquan Securities maintains an "outperform" rating for Guoquan (02517), projecting significant revenue and profit growth from 2025 to 2027, driven by its franchise model and supply chain efficiency improvements [1][2] Group 1: Financial Projections - Expected total revenue for 2025-2027 is 7.33 billion, 8.44 billion, and 9.59 billion yuan, representing year-on-year growth of 13.3%, 15.1%, and 13.6% respectively [1] - Projected net profit attributable to shareholders for the same period is 410 million, 490 million, and 560 million yuan, with year-on-year growth of 78.9%, 19.4%, and 13.7% [1] - Earnings per share (EPS) are forecasted at 0.15, 0.18, and 0.20 yuan, with a target price range of 4.03 to 4.51 HKD [1] Group 2: Business Model and Operations - The company has established a "single product single factory" model, with 7 self-built factories covering categories such as condiments and seafood, achieving a production capacity of 25,000 tons in 2022 [1] - In 2024, the acquisition of Huading Cold Chain will enhance the national cold chain network, covering 290 cities [1] - The company is focused on refined operations and improving multi-store franchisee performance, with stores widely distributed in lower-tier cities [1] Group 3: Market Expansion and Efficiency - Based on population density calculations, the total number of stores is expected to reach 19,000, with growth primarily from lower-tier markets [2] - Single-store efficiency is improving, with revenue recovery driven by popular products like the free-choice tripe set, and the unmanned retail model has been implemented in 2,000 stores to extend operating hours [2] - Capital expenditure has decreased from 250 million yuan in 2022 to 150 million yuan in 2024, with scale effects expected to reduce costs and improve net profit margins [2]