Investment Rating - The report assigns an "Overweight" rating to the company, with a target price of 633.95 HKD per share based on a PE of 40.0X for 2025E [5]. Core Views - The tea beverage market in China is expected to grow significantly, with a projected CAGR of 19.2% from 2024 to 2028, driven by increased penetration and consumption frequency [3][17]. - The company holds a dominant position in the market, with a 20.2% market share in the overall tea beverage sector and a 57.0% share in the sub-10 RMB price segment, indicating strong competitive advantages [3][29]. - The company's core strengths include a robust supply chain, strong brand recognition, and a focus on cost-effective products, which have helped maintain profitability even in a challenging market environment [3][5]. Summary by Sections Company Overview - The company, Mixue Ice City, is the leading brand in China's fresh tea beverage market, with 46,479 stores globally by the end of 2024, achieving a CAGR of 32% from 2021 to 2024 [2][33]. - The company went public on the Hong Kong Stock Exchange in March 2025, raising approximately 3.46 billion HKD, primarily for supply chain development [2][36]. Industry Analysis - The fresh tea beverage market in China reached a size of 211.5 billion RMB in 2023, with a significant growth trajectory expected due to increased consumer demand and market penetration [17][25]. - The competitive landscape is favorable for low-priced tea beverages, with Mixue Ice City being the clear leader, benefiting from consumer preferences for value [3][29]. Competitive Advantages - The company leverages its strong supply chain, with over 60% of its ingredients sourced in-house, allowing for cost control and quality assurance [3][5]. - The brand's marketing strategy, including the successful "Snow King" IP, has enhanced its visibility and consumer engagement, contributing to its market leadership [3][5]. Future Growth Prospects - The company plans to continue expanding its domestic footprint while also exploring international markets, particularly in Southeast Asia, where demand for fresh beverages is rising [4][5]. - The introduction of the "Lucky Coffee" brand aims to capture the growing coffee market, with plans to lower franchise entry barriers to accelerate growth [4][5]. Financial Projections - Revenue forecasts for 2025E, 2026E, and 2027E are 310.8 billion RMB, 353.2 billion RMB, and 390.2 billion RMB, respectively, with corresponding net profits of 55.0 billion RMB, 64.4 billion RMB, and 73.8 billion RMB [5][9].

Core Viewpoint - The company, Mixue Group, is experiencing significant growth and popularity in the Hong Kong stock market, with its stock price increasing by 85% year-to-date and reaching a new high of 617.5 HKD per share on June 4 [2]. Financial Performance - For the year 2024, Mixue Group reported a revenue of 24.829 billion CNY, a 22.3% increase from 20.3 billion CNY in the previous year [2]. - The gross profit for 2024 was 8.06 billion CNY, up 34.4% from 6 billion CNY year-on-year, with a gross margin of 32.5%, an increase of 3 percentage points from 29.5% [3]. - The net profit for 2024 reached 4.454 billion CNY, a 39.8% increase from 3.187 billion CNY in the previous year [3]. Business Model and Market Strategy - Mixue Group focuses on providing high-quality, affordable beverages and snacks, operating under the brands "Mixue Ice City" and "Lucky Coffee" [2]. - The company employs a heavy asset layout and cost control strategy, establishing its own factories, logistics, and digital systems to create a closed-loop supply chain from raw material procurement to production and delivery [2]. - Mixue's pricing strategy targets the lower end of the market, offering products priced between 2 to 6 CNY, effectively avoiding competition with high-end brands like Heytea [2]. Store Expansion and Market Presence - As of December 31, 2024, Mixue Group had a total of 46,479 stores, with 41,584 located in mainland China, of which 57.4% are in third-tier cities and below [3][5]. - The company surpassed Starbucks to become the largest beverage company by store count [3]. - The growth rate of overseas stores slowed significantly, with only 564 new stores added in 2024, representing a 13% increase compared to a 141% increase in 2023 [3]. Supply Chain and International Strategy - Mixue Group has established a localized supply chain system in four overseas countries and has opened stores in 11 countries [7]. - The company is considering building a multifunctional supply chain center in Southeast Asia to enhance cost management and better meet local consumer demands [7]. - Challenges remain in replicating its efficient supply chain overseas, including issues related to transportation costs and packaging damage [7].

Core Viewpoint - Both Bank of America and UBS have downgraded the rating of Mixue Ice City (02097.HK) due to high valuations and unsatisfactory overseas business expansion, indicating limited long-term growth potential [2][3]. Valuation Concerns - UBS downgraded Mixue Ice City from "Neutral" to "Sell," while Bank of America lowered its rating from "Neutral" to "Underperform" [3]. - UBS set a target price of approximately 477 HKD, while Bank of America adjusted its target price from 400 HKD to 465 HKD [3]. - As of June 9, Mixue Ice City's stock closed at 565.5 HKD, indicating a potential downside of 18.6% compared to UBS's target price [3]. Business Performance and Growth - Bank of America noted that recent sales growth was supported by unsustainable delivery platform subsidies, which may negatively impact future performance comparisons [4]. - The company's gross margin is under pressure, with expectations of a decline to around 30.5% in 2025, down from a stable range of 28.9% to 32.5% from 2021 to 2024 [4]. - Both banks expressed low expectations for Mixue Ice City's overseas business, predicting a decrease in overseas revenue contribution from 5.2% in 2024 to 4.5% in 2025 [4]. Competitive Landscape - Mixue Ice City faces intense competition in overseas markets, particularly in Indonesia and Vietnam, which has led to lower-than-expected recovery [4]. - Bank of America highlighted operational challenges and a lack of attractive pricing in its overseas business [5]. Market Dynamics - The new consumption sector, which includes Mixue Ice City, is experiencing crowded trading, with significant stock price increases for peers like Pop Mart and Lao Pu Gold [6]. - Mixue Ice City's market capitalization reached approximately 214.7 billion HKD as of June 9, 2023 [6]. Future Outlook - Despite valuation pressures, UBS forecasts a strong growth momentum in Mixue Ice City's domestic business, projecting a 15% annual store growth rate over the next 3-4 years, aiming for a total of 70,000 stores by 2028 [7].

Core Viewpoint - The recent downgrade of the rating for Mixue Group by several foreign investment banks has sparked significant market attention, yet the stock experienced a notable increase following the downgrade, indicating a complex market sentiment [1][2]. Group 1: Stock Performance and Market Reaction - Mixue Group's stock price rose over 9% in early trading on Monday, leading to a collective surge in other new consumption leaders, with Mixue closing up 5.41% [1]. - The inclusion of Mixue Group, along with Gu Ming and Bluetok, in the Hong Kong Stock Connect list on June 9 has provided a short-term boost, allowing southbound funds to purchase these stocks [1][4]. - Despite the positive short-term performance, analysts caution that high valuations and upcoming lock-up expirations may pose risks to stock prices in the medium term [1][4]. Group 2: Valuation and Analyst Ratings - Mixue Group's stock has seen a significant increase since its IPO, with a peak price of 618.5 HKD, representing a 205% rise from its initial offering price of 202.5 HKD [2]. - Merrill Lynch and UBS have downgraded Mixue Group's investment rating due to high valuations, with a current dynamic P/E ratio near 44 times, exceeding the industry average of 1.9 times [2]. - UBS highlighted that Mixue Group's overseas business has faced setbacks, with negative net openings and a 35% decline in same-store sales growth in 2024 [2]. Group 3: Future Prospects and Risks - Domestic securities firms remain optimistic about Mixue Group, with Guosen Securities projecting a store count of 100,000 in the next five years, including 65,000 in China and 15,000 overseas [3]. - The upcoming lock-up expirations for various companies, including Mixue Group on September 3, 2025, could lead to significant selling pressure, impacting stock performance [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本通告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本通告全部或任何部份內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 8. 審議並酌情通過（不論有否修訂）以下決議案為特別決議案： 「動議： MIXUE Group 蜜雪冰城股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2097） 股東週年大會通告 茲通告蜜雪冰城股份有限公司（「本公司」）謹訂於2025年6月30日（星期一）下午 三時正假座中國河南省鄭州市鄭東新區圃田西路與動力南路交叉口東南角蜜雪集團辦 公樓A棟7樓會議室舉行股東週年大會，會議目的如下： 作為普通決議案 – 1 – 1. 審議及批准本公司截至2024年12月31日止年度的董事會（「董事會」）報告。 2. 審議及批准本公司截至2024年12月31日止年度的監事會報告。 3. 審議及批准截至2024年12月31日止年度的經審核綜合財務報表。 4. 審議及批准本公司截至2024年12月31日止年度的年度報告。 5. 審議及批准續聘安永會計師事務所為本公司核數師，任期直至本公司下屆 股東週 ...

此乃要件 請即處理 閣下如對本通函的任何內容或應採取的行動有任何疑問，應諮詢股票經紀或其他註冊證券交易商、銀行經 理、律師、專業會計師或其他專業顧問。 閣下如已出售或轉讓名下所有蜜雪冰城股份有限公司的股份，應立即將本通函及隨附代表委任表格送交買 方或承讓人，或經手買賣或轉讓的銀行、股票經紀或其他代理商，以便轉交買方或承讓人。 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不會就因本通函全部或任何部分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 MIXUE Group 蜜雪冰城股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2097） (1)2024年度董事會報告； (2)2024年度監事會報告； (3)2024年度經審核綜合財務報表； (4)2024年年度報告； (5)建議續聘2025年核數師； (6)2025年度董事薪酬方案； (7)2025年度監事薪酬方案； (8)建議授出發行股份及出售或轉讓庫存股份的一般授權； (9)建議授出購回H股的一般授權； | | 釋義 | 1 | | --- | -- ...

Market Overview - The Hong Kong stock market showed a positive trend with the Hang Seng Index rising 1.63% to close at 24,181.43 points, while the Hang Seng China Enterprises Index and the Hang Seng Tech Index also saw significant gains of 1.74% and 2.78% respectively, marking a technical bull market as they rose over 20% from April lows [1] - The trading volume for the day reached 245.83 billion HKD, indicating strong market activity [1] Blue Chip Performance - Kuaishou-W (01024) led the blue-chip stocks with a 5.58% increase, closing at 62.4 HKD, contributing 16.34 points to the Hang Seng Index [2] - Other notable performers included WuXi Biologics (02269) up 5.48%, SMIC (00981) up 5.1%, while Budweiser APAC (01876) and Zijin Mining (02899) experienced declines of 2.06% and 1.64% respectively [2] Sector Highlights - Major technology stocks collectively rose, with Kuaishou increasing over 5% and Meituan and JD.com both rising over 4% [3] - The innovative drug sector showed strong performance, with stocks like Eucure Biopharma-B (01477) up 19.45% and King’s Ray Biotech (01548) up 16.14% [3][4] - The Chinese securities sector saw a broad increase, with firms like Everbright Securities (06178) rising 5.27% and GF Securities (01776) up 4.66% [4] Regulatory Developments - The China Securities Regulatory Commission approved the transfer of control for eight companies to Central Huijin, which may lead to a new wave of mergers and acquisitions in the securities industry [5] Consumer and Technology Trends - The upcoming Apple Worldwide Developers Conference (WWDC 2025) is expected to drive interest in consumer electronics and related stocks, with companies like AAC Technologies (01415) and Sunny Optical (02382) showing gains [6] - New consumption stocks also performed well, with companies like Bruker (00325) rising 22.34% [6][7] Commodity Movements - Gold stocks faced declines, with Shandong Gold (01787) down 3.99%, influenced by stable U.S. employment data which suggests the Federal Reserve may maintain its current interest rate stance [7] Notable Stock Movements - China Rare Earth (00769) surged 60% following news of eased export controls on rare earths, reflecting strong market interest [8] - Huicai Holdings (01180) experienced a dramatic drop of 47.54% before being suspended, indicating volatility in the entertainment equipment sector [9]

Group 1 - Three new consumer concept stocks, Bruker (00325.HK), Gu Ming (01364.HK), and Mixue Group (02097.HK), have been added to the Hong Kong Stock Connect list, effective from June 9 [1][2] - Following the announcement, Bruker saw an increase of 18.35% to HKD 187 per share, with a total market capitalization of HKD 46.61 billion; Mixue Group rose by 6.80% to HKD 573 per share, with a market cap of HKD 217.52 billion; Gu Ming increased by 2.64% to HKD 27.20 per share, with a market cap of HKD 64.69 billion [1] - The three companies have shown significant cumulative growth since their listings this year, with Bruker up over 200%, Mixue Group up over 180%, and Gu Ming up over 170% [1] Group 2 - New consumer stocks are considered a rare category among large consumers, characterized by high growth, strong cash flow, and broad market potential, making them attractive to institutional investors [3] - Despite the positive outlook, there are concerns about potential selling pressure from cornerstone investors or major shareholders in the coming months, as well as high valuations compared to larger consumer categories [3] - The Hong Kong market is expected to experience a peak in lock-up expirations from June to September 2025, with significant amounts of capital being released, which could impact stock prices [3] Group 3 - There is a divergence in market sentiment regarding new consumer stocks, with some analysts expressing concerns about overvaluation and potential bubbles in the sector [4][5] - UBS downgraded Mixue Group from "Neutral" to "Sell," citing high valuations and challenges in overseas business, while domestic brokerages remain optimistic about the company's growth potential [5] - Morgan Stanley expressed confidence in the IP industry in China, highlighting companies like Pop Mart and Lao Pu Huang Jin as top picks, indicating a positive outlook for the new consumer sector [5][6] Group 4 - The IP product category is expected to achieve a compound annual growth rate (CAGR) of over 35% in sales and profits over the next three years, contrasting with traditional companies that may only see single-digit growth [6] - Analysts recommend a strategic approach to investing in Hong Kong's technology and new consumer sectors, emphasizing the importance of distinguishing between genuine growth and speculative trading [6]

Group 1 - The new consumption concept stocks in the Hong Kong market showed mixed performance in the afternoon session [1] - Bluetec (00325.HK) surged over 24%, indicating strong investor interest [1] - Mixue Group (02097.HK) rose nearly 7%, reflecting positive market sentiment [1] Group 2 - Gu Ming (01364.HK) increased by over 5.5%, suggesting a stable growth trend [1] - Giant Bio (02367.HK) saw a rise of over 4%, indicating resilience in its stock performance [1] - Lao Pu Gold (06181.HK) declined nearly 3%, showing some weakness in the market [1] Group 3 - Hu Shang Ayi (02589.HK) fell by 1.3%, indicating a slight downturn in its stock [1]

Core Viewpoint - The article highlights significant stock movements in the Hong Kong and US markets, indicating potential investment opportunities and sector trends, particularly in technology, healthcare, and entertainment sectors [1][2][3]. Hong Kong Market Highlights - Mixue (02097) surged over 7%, while Bluetec (00325) rose over 16%, and Guming (01364) increased over 3% [1]. - Lion Group (02562) gained over 4% as it plans to acquire a domestic SaaS company with substantial market share [1]. - Apple-related stocks saw a broad increase, with Sunny Optical (02382) up nearly 4%, and other companies like Q Tech (01478) and AAC Technologies (02018) rising over 3% [1]. - Far East Pharmaceutical (00512) rose over 3% as it commenced international Phase III clinical trials for its innovative ophthalmic drug CBT-001 [1]. - Alibaba Pictures (01060) jumped over 16%, with a cumulative increase of nearly 140% over the past two weeks, focusing on Damao performances and IP derivatives [1]. - Global Data (09698) increased over 5% after signing a strategic agreement with China Life Investment for comprehensive cooperation in asset securitization [1]. - Three Life Pharmaceuticals (01530) rose over 5% following a significant licensing agreement with Pfizer, showcasing promising data for SSGJ-707 [1]. - JD Group (09618) gained nearly 5% after signing a strategic cooperation agreement with China Resources Group [1]. - Tencent Music (01698) increased over 6% as it expands its international footprint by investing in South Korea's SM Entertainment [1]. - Cinda Biologics (01801) rose over 6% due to promising early data for IBI363 in lung cancer, with Goldman Sachs previously indicating the stock was undervalued [1]. - SMIC (00981) increased nearly 4% as it plans to sell its stake in SMIC Ningbo to focus on its core business [1]. - Rare earth stocks surged, with China Rare Earth (00769) up over 48% [1]. - Fubo Group (03738) rose over 3% after completing a 138 million share placement to enhance its AI business [1]. - Friendship Time (06820) surged over 22%, with a year-to-date increase exceeding 90%, driven by positive market feedback on its new game [1]. - Military stocks collectively rose, with China Shipbuilding Defense (00317) increasing nearly 4% [1]. US Market Highlights - Huaxing Capital Holdings (01911) surged over 14% following the successful listing of stablecoin "first stock" Circle, in which its fund participated in 2018 [2]. - In the US market, Circle's stock skyrocketed nearly 30% on its second day of trading after an initial 168% surge [2]. - Lululemon (LULU.US) fell nearly 20% after lowering its full-year profit guidance [2]. - DocuSign (DOCU.US) dropped nearly 19% after revising its full-year billing revenue forecast downward [2]. - Virgin Galactic (SPCE.US) rose over 2%, with a peak increase of over 14%, as it announced a potential recovery in commercial space flight services [2]. - Nvidia's holdings saw a broad increase, with Applied Digital (APLD.US) up over 8% and Recursion Pharmaceuticals (RXRX.US) rising over 20% [2]. - Robinhood (HOOD.US) fell 6.25% in after-hours trading, while AI stock Applovin (APP.US) dropped 5.53% [3].