Core Viewpoint - The report from CICC maintains the core net profit forecast for Guoquan (02517) at 440 million CNY for 2025 and 550 million CNY for 2026, with a new forecast of 660 million CNY for 2027. The current stock price corresponds to a P/E ratio of 19x for 2026 and 15x for 2027, with an upside potential of 17% based on a target price of 4.90 HKD [1]. Company Status - CICC recently participated in a survey of Guoquan's new store model and expects stable same-store growth in the second half of 2025. The firm anticipates an accelerated store opening pace in 2026 and suggests monitoring the effects of store adjustments and the potential of new models [2]. Same-Store Growth and Profit Margin Outlook - The firm projects same-store growth rates in the low to high single digits for Q3 and Q4 of 2025. Looking ahead, the company is expected to enhance customer habits through more package offerings and product innovations, aiming to increase average transaction value. Strategies such as product diversification and improved membership operations are anticipated to drive customer traffic growth. The company is expected to maintain single-digit same-store growth in 2026, with long-term core profit margins projected to rise to 7-8% through upstream supply chain optimization and economies of scale [3]. Accelerated Store Opening and Large Store Model - The company plans to increase its store count by 1,416 to a total of 11,566 stores in 2025, with an expected closure rate improving to the mid-single digits. In 2026, the company aims to accelerate store openings to capture market share, with over half of new stores located in rural areas. The company will also optimize store types by upgrading existing small stores to larger formats of over 80 square meters, enhancing revenue capabilities through increased visibility, improved product offerings, and extended operating hours [4]. New Model Potential - The company is exploring new models, such as the "Guoquan Stir-fry" concept, which combines in-store purchases with on-site cooking by robots and online pre-ordering. The first pilot store is operating in Zhengzhou. Future expansion plans include integrating this model into existing stores and establishing small specialty stores alongside current locations. The Guoquan Stir-fry model shares supply chains and digital infrastructure with Guoquan Shihui, targeting a customer price point that is half of that in the broader dining market. Additionally, the company is innovating with camping sites, offering package deals for hot pot, barbecue, and afternoon tea to attract camping enthusiasts. Monitoring the validation of this single-store model is recommended [5].