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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, citing the company's rapid store expansion and deepening penetration in lower-tier cities. The brokerage highlighted the company's first-half 2026 results, which showed revenue of 2.589 billion yuan, up 42.4% year-on-year, and net profit attributable to shareholders of 321 million yuan, up 58.3%. The total global store count reached 13,155, with 53.4% located in third-tier and below cities. Guohai Securities noted stable profitability with a gross margin of 31.6% and an adjusted net margin of 13.33%. The firm forecasts 2026-2028 revenue of 5.41, 6.15, and 6.77 billion yuan respectively, and adjusted net profit of 680, 770, and 850 million yuan. The rating is based on expectations of continued brand expansion, product innovation, and membership operations driving single-store performance, as well as the scaling of its franchise network and supply chain. Risks include slower-than-expected store openings, weaker same-store sales, intensified competition, rising raw material costs, and food safety issues.
Source report
Key Financial Highlights for H1 2026
Guohai Securities has released a research report on Shanghai Aunt (02589), covering the company's first-half 2026 performance:
- 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 and Lower-Tier Market Penetration
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.
Notably, 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.
The rapid expansion in store count drove growth in the franchising business:
- Revenue from sales of goods to franchisees: RMB 2.083 billion, up 41.6% year-on-year
- Franchising service revenue: RMB 397 million, up 40.3% year-on-year
Profitability and Cost Structure
The company's gross profit margin for H1 2026 stood at 31.6%, up 0.2 percentage points year-on-year.
On the expense side, structural divergence was observed:
- Sales and marketing expense ratio: 11.3%, up 1.0 percentage point year-on-year, primarily due to increased investment in brand building and market promotion, 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
The net profit margin attributable to shareholders was 12.4%, up approximately 1.2 percentage points year-on-year, while the adjusted net profit margin was 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 enrichment 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
On the membership front, as of the end of June:
- 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
Financial Forecast and Rating
Guohai Securities projects the following for 2026–2028:
| Year | Revenue (RMB bn) | Adjusted Net Profit (RMB bn) | Adjusted P/E Ratio | |------|------------------|------------------------------|--------------------| | 2026 | 5.41 | 0.68 | 9.2x | | 2027 | 6.15 | 0.77 | 8.1x | | 2028 | 6.77 | 0.85 | 7.3x |
The brokerage believes that the company's steady expansion of its core brand, continuous product innovation, and membership operations will 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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