Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][6]. Core Views - The beverage industry is experiencing steady growth, with the ready-to-drink beverage segment showing significant potential for expansion, particularly in the ready-to-drink tea market, which is expected to reach a scale of 312.7 billion yuan by 2024, with a compound annual growth rate (CAGR) of 17.3% from 2023 to 2028 [1][16]. - The company, as a leading player in the ready-to-drink tea sector, has a strong market position due to its high cost-performance ratio and extensive store coverage, with over 45,000 stores nationwide [2][3]. - The company is also expanding into the ready-to-drink coffee market, with its brand "Luckin Coffee" expected to capture a larger share in lower-tier markets [1][3]. Summary by Sections Industry Overview - The ready-to-drink beverage market is projected to grow significantly, with ready-to-drink tea accounting for 50% of the segment, and the overall beverage market expected to reach 1.6 trillion yuan by 2024 [16][17]. - The market is transitioning from a fragmented structure to a more concentrated one, with the company being the absolute leader in the affordable ready-to-drink tea segment [22][23]. Company Positioning - The company has a stable ownership structure, with the founders holding over 80% of the shares, ensuring strong control and management continuity [2][33]. - The company has been in a rapid expansion phase since 2020, with a significant increase in store numbers, particularly in lower-tier cities, where it has achieved a coverage rate of 56.31% in third to fifth-tier cities [2][47]. Financial Performance - The company reported total revenue of 186.6 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 21%, with a net profit of 34.9 billion yuan, up 45% year-on-year [2][50]. - Revenue projections for 2024-2026 are estimated at 242.38 billion yuan, 285.87 billion yuan, and 324.60 billion yuan, respectively, with net profits expected to reach 40.34 billion yuan, 50.59 billion yuan, and 58.88 billion yuan [4][5]. Growth Potential - The company anticipates that the number of domestic stores could exceed 50,000 in the medium term, with potential maximum store numbers reaching between 60,000 to 80,000 [3][4]. - The ready-to-drink coffee segment is also seen as a significant growth opportunity, with "Luckin Coffee" positioned to benefit from the expanding coffee consumption market [3][28]. Valuation - The report suggests a target price of 431.42 HKD for the stock, based on a valuation of 30 times earnings for 2025, indicating a favorable investment outlook [4][6].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company has shown significant improvement in profit margins and continues to expand its store presence in lower-tier markets [7] - For the fiscal year 2024, the company reported total revenue of 24.83 billion RMB, a year-on-year increase of 22.3%, and a net profit of 4.44 billion RMB, up 41.4% year-on-year [7] - The company has established a robust end-to-end supply chain system and is focusing on brand marketing to strengthen its market position [7] Financial Performance Summary - Total revenue projections for the company are as follows: 2023A: 20.30 billion RMB, 2024A: 24.83 billion RMB, 2025E: 28.28 billion RMB, 2026E: 31.99 billion RMB, 2027E: 35.90 billion RMB [1] - Net profit projections are: 2023A: 3.14 billion RMB, 2024A: 4.44 billion RMB, 2025E: 5.37 billion RMB, 2026E: 6.09 billion RMB, 2027E: 6.88 billion RMB [1] - The company’s earnings per share (EPS) are projected to increase from 8.26 RMB in 2023A to 18.12 RMB in 2027E [1] Store Expansion and Market Presence - As of the end of 2024, the company had 41,600 stores in mainland China, a 25% year-on-year increase, and 4,895 overseas stores, a 13% year-on-year increase [7] - The company opened 10,555 new stores in 2024 while closing 1,609, resulting in a net increase of 8,946 stores [7]

Financial Performance - The company reported a revenue of RMB 24,828.9 million for the year ended December 31, 2024, representing a 22.3% increase from RMB 20,302.5 million in 2023[4] - Gross profit increased by 34.4% to RMB 8,060.2 million in 2024, up from RMB 5,999.0 million in 2023, driven by improved gross margins in product sales[7] - Net profit for the year rose by 39.8% to RMB 4,454.2 million, compared to RMB 3,186.6 million in 2023[14] - Revenue from product and equipment sales increased by 21.7% to RMB 24,208.8 million, while franchise and related services revenue surged by 52.8% to RMB 620.1 million[5] - Basic and diluted earnings per share for the year were both RMB 12.32, an increase from RMB 8.71 in the previous year[55] - The group's profit attributable to equity holders for 2024 was RMB 4,436,504,000, an increase of 41.4% compared to RMB 3,137,341,000 in 2023[85] - Basic earnings per share for 2024 was RMB 12.32, up 41.4% from RMB 8.71 in 2023[85] - Total revenue for 2024 was RMB 15,558,470,000, compared to RMB 13,502,499,000 in 2023, reflecting a growth of 15.2%[73] Store Network Expansion - The company expanded its store network to over 46,000 locations across China and 11 other countries by the end of 2024[26] - The total number of stores in mainland China increased from 33,234 in 2023 to 41,584 in 2024, representing a growth of 25.1%[31] - The number of franchise stores rose significantly from 37,516 at the end of 2023 to 46,462 by the end of 2024, with a net increase of 8,946 stores[35] - The company operates a network of over 46,000 stores, covering all provincial-level cities in mainland China and approximately 4,900 stores outside mainland China as of December 31, 2024[29] Financial Position - Cash and cash equivalents, including restricted cash and financial assets, increased by 63.8% to RMB 11,109.5 million as of December 31, 2024, compared to RMB 6,783.6 million in 2023[15] - The total assets as of December 31, 2024, amounted to RMB 15,266,484 thousand, compared to RMB 10,859,253 thousand in 2023, showing a significant growth in asset base[57] - Non-current assets increased to RMB 7,887,271 thousand from RMB 5,445,381 thousand in 2023, indicating a strong investment in long-term assets[57] - The company's leverage ratio decreased to 23.9% as of December 31, 2024, down from 27.4% in 2023[21] Research and Development - Research and development expenses rose by 23.4% to RMB 104.9 million, maintaining a steady 0.4% of total revenue[11] - The company’s R&D efforts led to the development of a fresh milk base in 2024, aimed at enhancing product taste while meeting health demands[36] - The company aims to enhance its end-to-end supply chain and invest in new technologies and materials for R&D innovation to support its global strategy[43] Strategic Partnerships and Supply Chain - The company has established a strategic partnership with Junlebao to jointly build the "Xuewang Ranch," enhancing supply chain capabilities and product quality[36] - The logistics network includes 27 warehouses in mainland China and localized storage systems in four overseas countries, supporting extensive store coverage[36] - The company maintains rigorous quality control standards to ensure consistent high-quality output across its supply chain[37] Brand and Marketing - The "Snow King" IP has become the only super IP in China's fresh beverage industry, enhancing brand differentiation since its launch in 2018[38] - The "蜜雪冰城" topic on Douyin has achieved over 43.5 billion views as of December 31, 2024, showcasing the brand's strong online presence[39] - The company will continue to deepen its brand IP, "Snow King," by producing diverse high-quality content, including animations and collaborations with leading brands[44] Financial Management - The company did not declare any annual dividend for the year ended December 31, 2024[54] - The company raised approximately HKD 3,313 million from its global offering, which will be used for purposes outlined in the prospectus[51] - The company plans to utilize the net proceeds from the offering as short-term deposits in licensed banks or financial institutions if not used timely for the intended purposes[51] Other Financial Metrics - Selling and distribution expenses increased by 21.3% to RMB 1,599.5 million, accounting for 6.4% of total revenue, consistent with the previous year[9] - Other income and net gains decreased by 11.3% to RMB 219.5 million, primarily due to reduced government subsidies[8] - Government grants received decreased to RMB 32,784,000 from RMB 115,821,000, a decline of 71.7% year-over-year[72] - Interest income rose significantly to RMB 107,015,000, up 98.5% from RMB 53,801,000 in 2023[72] - The expected revenue to be recognized within one year from unfulfilled performance obligations is RMB 359,636,000, compared to RMB 259,271,000 in 2023, reflecting a 38.7% increase[71] - The total amount of unfulfilled performance obligations as of December 31, 2024, was RMB 367,458,000, an increase from RMB 284,246,000 in 2023[71] - The company has no sales to a single customer accounting for 10% or more of total revenue for the years ended December 31, 2024, and 2023[65] - The majority of the company's revenue and operating profit is derived from mainland China[64]

Investment Rating - The report gives a "Buy" rating for the company, Mijue Group (2097.HK) [1] Core Insights - Mijue Group has established itself as a leading player in the tea beverage industry in China, with over 45,000 stores across 11 countries as of Q3 2024, achieving a revenue of 18.66 billion yuan [2][11] - The ready-to-drink beverage market is experiencing rapid growth, with China's market expected to grow from 517.5 billion yuan in 2023 to 1,163.4 billion yuan by 2028, reflecting a compound annual growth rate (CAGR) of 11.59% [2][37] - The company benefits from a strong supply chain and economies of scale, with a low entry barrier for franchisees and a robust support system for franchisees, leading to rapid store expansion [2][20] Summary by Sections Company Overview - Founded in 1997, Mijue Group has evolved from a street vendor to a global beverage giant, with significant milestones including the establishment of a central factory and a logistics system [4][20] - The company operates two main brands: Mijue Ice City for tea beverages and Lucky Coffee for coffee, with a focus on affordable pricing [20][18] Financial Performance - The company reported revenues of 10.35 billion yuan, 13.58 billion yuan, and 20.3 billion yuan for the years 2021, 2022, and 2023 respectively, with a continuous growth rate exceeding 20% [11] - For the forecasted years 2024 to 2026, revenues are expected to reach 24.82 billion yuan, 30.16 billion yuan, and 33.91 billion yuan, with corresponding net profits of 4.58 billion yuan, 5.63 billion yuan, and 6.40 billion yuan [2] Market Dynamics - The global ready-to-drink beverage market is projected to grow significantly, with the share of ready-to-drink beverages increasing due to their freshness and health benefits compared to bottled drinks [33][34] - The Chinese market, particularly in lower-tier cities, presents substantial growth opportunities, with a projected CAGR of 22.18% for affordable ready-to-drink beverages from 2023 to 2028 [37][40] Competitive Advantages - Mijue Group has established a comprehensive supply chain that includes procurement, production, logistics, and warehousing, which helps stabilize raw material prices and reduce costs [55][63] - The company employs a low-cost franchise model, allowing for rapid expansion and strong profitability for franchisees, with a focus on high-density locations in lower-tier cities [44][51]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its competitive advantages and market positioning [4][47]. Core Insights - The company is a leading brand in the ready-to-drink beverage sector, benefiting from multiple competitive advantages that facilitate rapid growth [4][7]. - The Chinese ready-to-drink beverage market is experiencing significant growth, with a projected CAGR of 18% from 2023 to 2028, indicating substantial future potential [16][18]. - The company has established itself as the largest player in the domestic market, with a market share of 20.9% as of Q3 2024, and a strong presence in both domestic and international markets [6][31]. Summary by Sections Financial Performance - The company’s revenue is projected to grow from 203.02 billion RMB in 2023 to 343.45 billion RMB by 2026, with year-on-year growth rates of 49.55%, 25.20%, 18.98%, and 13.56% respectively [5][47]. - The net profit attributable to shareholders is expected to increase from 31.37 billion RMB in 2023 to 55.98 billion RMB in 2026, with growth rates of 57.13%, 42.58%, 14.45%, and 9.35% respectively [5][47]. Competitive Advantages - The company maintains a high-quality and affordable product strategy, with an average price around 6 RMB, targeting a broad customer base [6][28]. - It holds the largest market share in the ready-to-drink beverage sector in China, with a significant increase in market share from 16.6% in 2021 to 20.9% in Q3 2024 [6][31]. - The company has a leading number of stores, with 45,302 locations as of Q3 2024, making it the largest ready-to-drink beverage company globally [6][35]. - The company emphasizes supply chain efficiency, achieving a high self-production ratio and maintaining lower procurement costs compared to competitors [6][37]. - The "Snow King" IP has become a significant marketing asset, enhancing brand recognition and consumer engagement [6][39]. Market Outlook - The ready-to-drink beverage market in China is expected to grow from 5,175 billion RMB in 2023 to 11,634 billion RMB by 2028, with an increasing share of the overall beverage market [20][22]. - The company is well-positioned to capitalize on the growing demand for affordable ready-to-drink beverages, particularly in lower-tier cities where market growth is robust [20][28].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its competitive advantages and market positioning [4][47]. Core Insights - The company is a leading brand in the ready-to-drink beverage sector, benefiting from multiple competitive advantages that facilitate rapid growth [4][7]. - The Chinese ready-to-drink beverage market is experiencing significant growth, with a projected CAGR of 18% from 2023 to 2028, indicating substantial future potential [16][18]. - The company has established itself as the largest player in the domestic market, with a market share that has consistently increased over recent years [9][31]. Summary by Sections Financial Performance - The company’s revenue is projected to grow from 20,302 million RMB in 2023 to 34,344 million RMB by 2026, with year-on-year growth rates of 49.55%, 25.20%, 18.98%, and 13.56% respectively [5][47]. - The net profit attributable to shareholders is expected to reach 55.98 billion RMB by 2026, reflecting a growth of 42.58% in 2024, followed by 14.45% and 9.35% in subsequent years [5][47]. Competitive Advantages - The company maintains a high-quality and affordable product strategy, with an average price around 6 RMB, catering to a broad customer base [6][28]. - As of Q3 2024, the company has a total of 45,302 stores, making it the largest ready-to-drink beverage company globally by store count [6][35]. - The company emphasizes supply chain efficiency, achieving a high self-production ratio and maintaining lower procurement costs compared to competitors [6][37]. - The "Snow King" IP has significantly enhanced the company's marketing capabilities, contributing to a strong brand presence and customer engagement [6][38]. Market Outlook - The ready-to-drink beverage market in China is expected to grow from 5,175 billion RMB in 2023 to 11,634 billion RMB by 2028, with a market share increase from 36.3% to 49.2% of the beverage market [20][22]. - The company is well-positioned to capitalize on the growing demand for affordable ready-to-drink beverages, particularly in lower-tier cities where market growth is robust [20][28].

執行董事兼首席執行官 蜜雪冰城股份有限公司（「本公司」）及其附屬公司（「本集團」）董事會（「董事會」） 謹此公佈，本公司董事會會議將於2025年3月26日（星期三）舉行，藉以（其中包 括）(i)考慮及批准本集團截至2024年12月31日止年度的全年業績及其發佈，(ii)考 慮建議派發末期股息（如有），以及(iii)處理其他事項。 承董事會命 蜜雪冰城股份有限公司 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公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公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。 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） 董事會會議通告 張紅甫先生 香港，2025年3月14日 於本公告日期，董事會成員包括(i)執行董事張紅超先生、張紅甫先生、蔡衛淼女 士及趙紅果女士，及(ii)獨立非執行董事潘慧妍女士、朱璽先生及黃宣德先生。 ...

Core Viewpoint - The company, Mixue Group, has achieved the highest market capitalization among Chinese restaurant companies, surpassing Yum China and the combined market value of other tea beverage companies, despite recent stock price fluctuations [1][2]. Group 1: Market Performance - On March 3, Mixue Group debuted on the Hong Kong Stock Exchange, breaking the trend of tea beverage companies experiencing a drop in share price on their first day, with an opening increase of 30% and a closing price of 290 HKD, up 43% from the issue price [2]. - As of March 13, the stock price was reported at 399.8 HKD, with a total market capitalization of 151.8 billion HKD, leading the Chinese restaurant sector [1][6]. Group 2: Capital Attraction - Prior to its listing, Mixue Group was dubbed the "Frozen Capital King" due to its record-breaking subscription figures, achieving a subscription multiple of 5324 times and raising 32.91 billion HKD [3][6]. - The company attracted significant investment from well-known institutions, including M&G Investments and Sequoia Capital, with total subscriptions reaching approximately 15.58 billion HKD [3]. Group 3: Financial Performance - For the first nine months of 2024, Mixue Group reported revenues of 18.66 billion HKD and a net profit of 3.49 billion HKD, resulting in a net profit margin of 18.7%, which is significantly higher than its competitors [4]. - Competitors such as Gu Ming and Cha Bai Dao reported lower revenues and profit margins, highlighting Mixue's superior financial performance [4]. Group 4: Business Strategy - Mixue Group employs a low-price strategy, with an average drink price of approximately 6 RMB, which is significantly lower than industry averages, allowing it to capture a large market share in lower-tier cities [5][6]. - The company has built a robust supply chain to minimize costs and relies heavily on a franchise model, with over 90% of its revenue coming from supplying materials and equipment to franchisees [6]. Group 5: Challenges Ahead - The sustainability of Mixue's low-price strategy is under scrutiny due to rising costs, market saturation, and competition from other low-cost brands [7]. - The company has begun adjusting prices in certain regions, indicating potential challenges in maintaining its pricing strategy [7]. Group 6: International Expansion - As of September 2024, Mixue Group has opened approximately 4,800 stores outside mainland China, with a significant portion of overseas revenue coming from Indonesia and Vietnam [8]. - The company faces challenges in expanding into developed markets, where brand recognition is lower, as evidenced by its limited store openings in countries like Australia, Japan, and South Korea [8].

Investment Rating - The report assigns a "Buy" rating for the company, Mijiu Group (02097.HK), marking its first coverage [1]. Core Insights - Mijiu Group is positioned as a leader in the affordable ready-to-drink beverage market, with a significant brand dominance reflected in its extensive store network and strong market presence [8][62]. - The company has a robust growth trajectory, with projected revenues increasing from 20.3 billion RMB in 2023 to 31.2 billion RMB by 2026, representing a compound annual growth rate (CAGR) of approximately 13.66% [1]. - Mijiu's net profit is expected to grow from 3.1 billion RMB in 2023 to 5.9 billion RMB in 2026, indicating a strong profitability outlook [1][62]. - The brand's unique IP, "Xue Wang," has significantly enhanced its marketing effectiveness, achieving over 43.5 billion views on social media platforms, which contributes to its brand recognition and consumer engagement [45][62]. Summary by Sections 1. Market Position and Brand Dominance - Mijiu Group operates over 40,000 stores, far surpassing competitors, which typically have between 3,000 to 9,000 stores, showcasing its market leadership [8][19]. - The affordable ready-to-drink beverage segment is projected to grow at a CAGR of 23% from 2024 to 2028, positioning Mijiu favorably within this high-growth market [14][15]. 2. Financial Performance and Projections - The company’s total revenue is forecasted to reach 24.0 billion RMB in 2024, with a year-on-year growth of 18.36% [1]. - Mijiu's earnings per share (EPS) are expected to increase from 8.26 RMB in 2023 to 15.64 RMB by 2026, reflecting strong earnings growth [1]. 3. Competitive Landscape - Mijiu holds a market share of over 30% in the affordable ready-to-drink beverage sector, while competitors struggle to establish similar dominance in the mid-priced segment [29][34]. - The mid-priced beverage market is highly competitive, with brands like Luckin Coffee and others vying for market share, but Mijiu's position remains strong in the affordable segment [26][34]. 4. International Expansion and Future Outlook - Mijiu has begun its international expansion, with 4,792 stores outside of mainland China, primarily in Southeast Asia, indicating significant growth potential [54][61]. - The company aims to enhance its supply chain and marketing strategies to support its overseas growth, with plans to enter markets like Japan [58][62].

Investment Rating - The report assigns a "Buy" rating for the company, Mijiu Group (02097.HK), marking its first coverage [8][62]. Core Insights - Mijiu Group is positioned as a leader in the affordable ready-to-drink beverage market, with a significant brand dominance reflected in its extensive store network and strong market share [8][62]. - The company has a robust end-to-end supply chain and leverages its "Xue Wang" IP for effective brand marketing, which enhances consumer engagement and brand recognition [8][62]. - Mijiu's projected net profits for 2024-2026 are estimated at 43.8 billion, 51.2 billion, and 59.4 billion RMB, respectively, with corresponding P/E ratios of 28, 24, and 21 [8][62]. Summary by Sections 1. Market Position and Brand Dominance - Mijiu Group operates over 40,000 stores in China, significantly outpacing competitors, which typically have between 3,000 to 9,000 stores [8][19]. - The affordable ready-to-drink beverage market is expected to grow at a compound annual growth rate (CAGR) of 23% from 2024 to 2028, indicating strong market potential for Mijiu [14][15]. 2. Financial Performance and Projections - The company reported total revenue of 13.576 billion RMB in 2022, with a projected increase to 31.232 billion RMB by 2026, reflecting a CAGR of 31.15% [8][62]. - Mijiu's net profit for 2022 was 1.997 billion RMB, expected to rise to 5.937 billion RMB by 2026, showcasing a strong growth trajectory [8][62]. 3. Competitive Landscape - Mijiu holds a market share of over 30% in the affordable ready-to-drink beverage segment, while competitors struggle to establish a similar level of brand dominance [8][29]. - The mid-priced beverage market is highly competitive, with brands like Heytea and Luckin Coffee vying for market share, but Mijiu remains the clear leader in the affordable segment [8][19]. 4. Brand Marketing and Consumer Engagement - The "Xue Wang" IP has generated over 43.5 billion views on social media platforms, significantly enhancing brand visibility and consumer connection [8][45]. - Mijiu's marketing strategy integrates both online and offline channels, effectively reaching a broad consumer base [8][45]. 5. Expansion and Future Outlook - Mijiu is actively pursuing international expansion, with a focus on Southeast Asia, where it has already established a significant presence [8][54]. - The company aims to increase its overseas store count, which currently stands at 4,792, representing about 10.6% of its total stores [8][54].