Goldman Sachs has released a research report maintaining its target price of HK$581 and a "Buy" rating for BUSYMING (01768).

The firm highlighted that BUSYMING delivered robust first-half results, with sales reaching RMB 45 billion and adjusted net profit of RMB 2.45 billion, exceeding the bank's estimates by 4% and 19%, respectively.

This earnings outperformance was primarily driven by gross margin expansion to 11.5% and operational cost savings, which lifted the adjusted net profit margin to a better-than-expected 5.4%.

Goldman Sachs also observed a positive year-on-year growth of 0.3% in average same-store GMV, alongside a solid addition of 4,457 net new stores, further reinforcing its view that value-focused retailers are poised to emerge as market winners amid a multi-year channel transformation.