Goldman Sachs: Wanchen Group (300972.SZ) 2Q26 Review — Strong Beat on Sales and Store Openings; Core Net Margin Improved QoQ
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Goldman Sachs reiterates its Buy on Wanchen Group (300972.SZ) and raises the 12-month target price from Rmb324 to Rmb327, implying 68.2% upside from Rmb194.38. First-half 2026 revenue reached Rmb34.8bn, up 54.8% year on year, with net profit of Rmb1.21bn, up 157%; implied 2Q26 sales and net profit of Rmb18.2bn and Rmb580mn rose 55% and 126%, versus 41% and 146% expected. The mass snack retail segment posted 2Q26 revenue of Rmb18.1bn, up 55% and about 10% above estimates, opened 5,488 net new stores to reach 23,802 outlets, and earned Rmb971mn before minority interests and ESOP, up 78%. Core net margin excluding government subsidies improved sequentially to 5.4% from 5.2% in 1Q26, and gross openings of 5,814 in 1H26 topped 2025's full-year 4,720, concentrated in East China.
Goldman lifts 2026-28E sales 10-16% and earnings 3-14%, expects 28,200 stores in 2026E, and models 2H26E segment sales and profit growth of 49% and 50% at a 5.6% net margin. The Rmb327 target applies 18x 2027E P/E discounted to mid-2027 at an 8.2% cost of equity, benchmarked to global value retailers; the stock trades at 14x/10x 2026E/27E P/E with a 27% earnings CAGR. The edible fungi business swung to a roughly Rmb30mn 2Q26 loss.
Key exhibits
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Exhibit 3
