Economic Observation Network Guoquan (02517. HK) has disclosed multiple business related developments such as equity incentives, store expansion, and performance targets, and there are differences in pricing among institutions.

H-share equity incentive plan:
The board of directors has recommended adoption on July 13th, pending approval from the shareholders' meeting, and intends to use treasury shares and H shares purchased by the trustee as the source of shares

Operation situation of the first store in Hong Kong:
On August 18th, the first store on Hennessy Road in Wan Chai opened. The company plans to run the model within one year and expand to the Greater Bay Area and Europe and America

Annual store opening target adjustment:
The company has reduced its number of stores from 14500 at the beginning of the year to over 13100 by the end of the year. In the second half of the year, the main mode of new additions will be the large store model, with an expected closure rate of less than 4%

Verification of the effect of major store adjustments:
Completed 684 store upgrades in the first half of the year, with a management goal of adjusting approximately 2000 stores throughout the year. By the end of the year, the proportion of large stores is expected to reach over 25%

Same store performance during peak season in the second half of the year:
The seasonality of hotpot and barbecue categories is obvious, and Q2 same store calculations are under pressure. The peak season data is the key window for evaluating the effectiveness of adjustments

Divergent points in market pricing:
The current stock price is approximately 8 times 2026E PE (as of August 19th) However, there is a significant divergence in institutional target prices - CICC offered HKD 4.90 in February, while other securities firms lowered it to the range of HKD 2.20-2.70 The core disagreement lies in the pace of profit elasticity realization.

The above content is based on publicly available information and does not constitute investment advice.