Investment Rating - The report maintains a "Recommendation" rating for Guangzhou Restaurant (603043) with a target price of 22.98 CNY [1][7]. Core Views - The company reported Q3 2025 revenue of 2.293 billion CNY, a year-on-year increase of 4.7%, and a net profit attributable to shareholders of 410 million CNY, up 5.33% year-on-year. For the first nine months of 2025, revenue reached 4.285 billion CNY, growing 4.43% year-on-year, while net profit was 449 million CNY, a slight increase of 0.31% year-on-year. The performance in Q3 showed significant recovery compared to the first half of the year, driven by effective marketing activities during peak seasons [1][7]. Financial Performance Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 5,124 million CNY, 5,409 million CNY, 5,978 million CNY, and 6,560 million CNY respectively, with year-on-year growth rates of 4.6%, 5.6%, 10.5%, and 9.7% [3][8]. - Net profit attributable to shareholders is forecasted to be 494 million CNY in 2024A, increasing to 537 million CNY in 2025E, 594 million CNY in 2026E, and 674 million CNY in 2027E, with corresponding growth rates of -10.3%, 8.7%, 10.7%, and 13.5% [3][8]. - The company’s earnings per share (EPS) is projected to rise from 0.87 CNY in 2024A to 1.19 CNY in 2027E [3][8]. Business Segment Performance - The company’s restaurant business generated revenue of 1.131 billion CNY in the first nine months of 2025, up 3.88% year-on-year, while the food business revenue was 3.081 billion CNY, growing 4.80% year-on-year. The sales from other products amounted to 40 million CNY [7]. - The mooncake series, frozen foods, and other products achieved revenues of 1.458 billion CNY, 786 million CNY, and 838 million CNY respectively, with other products seeing a significant increase of 15.24% due to innovative product launches [7]. Cost Management and Financial Health - The company has strengthened cost control, with a Q3 2025 gross margin of 39.79%, an increase of 0.30 percentage points year-on-year. Sales and management expenses for the first nine months of 2025 were 390 million CNY and 306 million CNY, reflecting year-on-year changes of +6.91% and -7.61% respectively [7]. - Accounts receivable increased significantly to 520 million CNY, up 341.67% from the beginning of the year [7]. Investment Recommendations - The company’s dual business model of "restaurant + food" is progressing well, with a solid foundation in the restaurant and mooncake sectors. The report suggests that the company can maintain strong operational capabilities and cost control during the industry's supply elimination phase. The forecast for net profit for 2025, 2026, and 2027 has been adjusted to 540 million CNY, 590 million CNY, and 670 million CNY respectively, with corresponding growth rates of 8.7%, 10.7%, and 13.5% [7].