Goldman Sachs: Very busy (01768) The adjusted net profit for the first half of the year far exceeded expectations, reaffirming the “buy” rating

The Zhitong Finance App learned that Goldman Sachs released a research report saying that it is very busy maintaining Mingming (01768) with a target price of HK$581 and a “buy” rating. Goldman Sachs indicated that Mingming had strong performance in the first half of the year, with sales of 45 billion yuan (same below) and adjusted net profit of 2.45 billion yuan, 4% and 19% higher than the bank's forecast, respectively. The better-than-expected profit margin was mainly driven by gross margin expansion to 11.5% and operating expenses savings, which boosted the adjusted net profit margin to 5.4% better than expected. The bank saw an average single-store GMV increase of 0.3% year-on-year, and a steady net addition of 4,457 stores, further consolidating its expectations that value retailers will become market winners over the years of channel transformation.