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Guohai Securities Initiates Coverage on Auntea Jenny with 'Buy' Rating, Citing Expansion in Lower-Tier Cities
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Guohai Securities has initiated coverage on Auntea Jenny (stock code 02589) with a 'Buy' rating, according to a research report summarized by Jinwu Finance. The brokerage highlighted the company's strong first-half 2026 performance, with revenue reaching 2.589 billion yuan, a 42.4% year-on-year increase, and net profit attributable to shareholders rising 58.3% to 321 million yuan. The report emphasizes rapid store expansion, particularly in lower-tier cities, where stores in third-tier and below accounted for 53.4% of the total 13,155 global stores as of mid-2026. This expansion drove growth in franchise-related revenue. Guohai Securities notes stable profitability with a 31.6% gross margin and a 13.33% adjusted net margin. The company's product innovation, including 142 new products under its 'Daily Health+' strategy, and a growing membership base with a 42.3% quarterly repurchase rate are seen as positive factors. Guohai Securities forecasts 2026-2028 revenue of 5.41, 6.15, and 6.77 billion yuan respectively, with adjusted net profit of 680, 770, and 850 million yuan. The 'Buy' rating is based on expectations of continued brand expansion, product innovation, and supply chain scale effects, though risks include slower store openings, weaker same-store sales, and industry competition.
Source report
Financial Highlights for H1 2026
Guohai Securities has released a research report on Shanghai Aunt (02589), covering the company's performance in the first half of 2026:
- Revenue: RMB 2.589 billion, up 42.4% year-on-year
- Net profit attributable to shareholders: RMB 321 million, up 58.3% year-on-year
- Adjusted net profit: RMB 345 million, up 41.6% year-on-year
- Adjusted net profit margin: 13.33%, largely stable year-on-year
Store Network Expansion
As of the end of H1 2026, the company operated a total of 13,155 stores globally, representing a 39.4% increase year-on-year. This includes:
- 13,120 franchised stores
- 35 directly operated stores
During H1 2026, the company opened 2,253 new franchised stores and closed 556, resulting in a net increase of 1,697 stores. The number of franchisees reached 8,014, up 40.4% year-on-year.
Geographic Distribution
As of the end of H1 2026, stores in third-tier and below cities totaled 7,022, accounting for 53.4% of all stores, an increase of 2.3 percentage points year-on-year.
Franchise Business Growth
Rapid store expansion drove franchise-related revenue:
- Sales of goods to franchisees: RMB 2.083 billion, up 41.6% year-on-year
- Franchise service income: RMB 397 million, up 40.3% year-on-year
Profitability and Cost Structure
- Gross margin: 31.6%, up 0.2 percentage points year-on-year
- Selling and marketing expense ratio: 11.3%, up 1.0 percentage point year-on-year, primarily due to increased brand building and marketing investment, as well as higher employee costs from business expansion
- Administrative expense ratio: 3.7%, down 1.4 percentage points year-on-year
- R&D expense ratio: 1.3%, down 0.1 percentage point year-on-year
- Net profit margin attributable to shareholders: 12.4%, up approximately 1.2 percentage points year-on-year
- Adjusted net profit margin: 13.3%, largely flat year-on-year
Product Innovation and Membership Growth
In H1 2026, the company launched 142 new products under its "Daily Health+" strategy. Key highlights include:
- Continued expansion of the fruit and vegetable tea series
- Accelerated product iteration of the kale series
- Introduction of new coffee offerings such as Amber Caramel Macchiato and Four-Coconut Macchiato, supported by the gradual rollout of coffee machines
Membership Metrics (as of end of June 2026)
- WeChat mini-program registered members: 170 million, an increase of 38.6 million year-on-year
- Average quarterly active members: 16.3 million, up 0.5 million year-on-year
- Quarterly repurchase rate: 42.3%, up 1.7 percentage points year-on-year
Earnings Forecast and Rating
Guohai Securities forecasts the following for 2026–2028:
| Year | Revenue (RMB) | Adjusted Net Profit (RMB) | Adjusted P/E Ratio | |------|---------------|---------------------------|--------------------| | 2026 | 5.41 billion | 680 million | 9.2x | | 2027 | 6.15 billion | 770 million | 8.1x | | 2028 | 6.77 billion | 850 million | 7.3x |
The brokerage notes that the company's core brand is expanding steadily, with product innovation and membership operations continuing to support per-store performance. The expansion of the franchise network and supply chain scale effects are expected to drive sustained revenue and profit growth. Guohai Securities initiates coverage with a "Buy" rating.
Risk Factors
- Store expansion progress falling short of expectations
- Same-store sales performance below expectations
- Intensified industry competition
- Rising raw material prices
- Food safety risks
Source
金吾资讯Neutral / independent
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