Core Viewpoint - The listing of Jiangsu Hongxin Supermarket Chain Co., Ltd. on the Hong Kong Stock Exchange marks a potential revaluation of regional retail leaders under the dual pressures of consumer segmentation and channel restructuring [1][4]. Group 1: Company Overview - Jiangsu Hongxin Supermarket, known as "the first supermarket in Central Jiangsu," raised approximately HKD 150 million during its IPO [1]. - The company operates 52 supermarkets and 107 convenience stores, primarily concentrated in Yangzhou, Jiangsu Province [5][6]. - As of 2023, Hongxin Supermarket ranked second among supermarket operators in Yangzhou with a market share of 9.1% and fifth in Central Jiangsu with a market share of 2.3% [6]. Group 2: Financial Performance - The company's revenue for the past three years was RMB 1.43 billion, RMB 1.33 billion, and RMB 1.40 billion, with net profits of RMB 35.08 million, RMB 51.07 million, and RMB 51.60 million respectively [6][9]. - In the first nine months of 2024, revenue reached RMB 1.00 billion with a net profit of RMB 24.08 million [6][9]. - The net profit margin for 2023 was 3.66%, ranking second among listed peers [8]. Group 3: Business Structure and Strategy - Hongxin Supermarket is undergoing a significant business structure adjustment, shifting from a C-end retail focus to a B-end wholesale business, with wholesale revenue increasing from 36.7% in 2021 to 56.9% in the first nine months of 2024 [10][12]. - The company has also ventured into the prepared food sector, with a central kitchen capable of producing 20,000 meals daily [13][15]. - Despite its growth in wholesale and prepared food, the company has faced challenges with its franchise model, leading to the termination of its franchise program due to declining revenues [16]. Group 4: Market Position and Future Outlook - The successful IPO has enhanced the company's brand recognition and market visibility, transitioning from a regional player to a more nationally recognized entity [17]. - Hongxin Supermarket's approach of deepening its regional market presence and diversifying its business model serves as a reference for other companies in the industry [19]. - The company aims to expand its prepared food supply chain and infrastructure, indicating a commitment to growth in this segment [16].
江苏宏信超市成功上市，区域零售的另类突围