Core Viewpoint - Anjiu Food, a leading player in the frozen food industry, is set to launch its IPO on the Hong Kong Stock Exchange, aiming to raise approximately HKD 25.5 billion to enhance its sales network, procurement capabilities, and supply chain optimization [1][20]. Group 1: Company Overview - Anjiu Food was established in 2001 and has developed a strong brand presence in the frozen food sector, achieving significant market share and establishing a nationwide distribution network [2][10]. - The company has cultivated a diverse product matrix covering three main categories: frozen prepared foods, frozen dishes, and frozen noodle products, with 39 products generating over RMB 100 million in revenue each by 2024 [2][4]. Group 2: Market Position - Anjiu Food holds a dominant position in the domestic frozen food market, with a market share of 6.6%, which is double that of the second-largest competitor. In the frozen prepared food segment, its market share is 13.8%, significantly outpacing the second competitor [4][10]. - The company has established a "disruptive" leadership in the market, being the only enterprise to rank first in both core segments of frozen prepared foods and frozen dishes [4][5]. Group 3: Operational Efficiency - Anjiu Food operates 13 production bases globally, with a designed production capacity exceeding 100,000 tons and a utilization rate of 97.2% in 2024 [5][10]. - The company employs a "sales-driven + centralized production" model, optimizing logistics costs and enhancing market responsiveness, which contributes to its competitive pricing strategy [5][10]. Group 4: Financial Performance - From 2011 to 2024, Anjiu Food's revenue grew from RMB 1.224 billion to RMB 15.13 billion, with a compound annual growth rate (CAGR) of 21.3%. The net profit increased from RMB 71 million to RMB 1.485 billion, reflecting a CAGR of 26.3% [10][12]. - The company achieved a net profit margin of 10% in 2024, outperforming competitors such as Sanquan Foods and Qianwei Central Kitchen [11][12]. Group 5: Cash Flow and Risk Management - Anjiu Food reported a net cash flow from operating activities of RMB 2.024 billion in 2024, indicating a year-on-year growth of 10.3%, which is significantly higher than its competitors [12][15]. - The company maintains a healthy cash flow, supporting ongoing investments in capacity expansion, channel development, and R&D innovation [12][15]. Group 6: Market Opportunities - The Chinese frozen food market is still in its growth phase, with per capita consumption significantly lower than in developed markets. The market is expected to grow at a CAGR of 9.4% from 2024 to 2029, reaching RMB 347.3 billion [15][19]. - Anjiu Food plans to leverage its IPO proceeds to enhance its international sales and distribution networks, focusing on markets in Southeast Asia, Australia, North America, and Europe [19][20]. Group 7: Valuation and Investment Appeal - Anjiu Food's current valuation is at a historical low, with a dynamic price-to-earnings ratio of 14.16, which is below the industry average. This presents a potential opportunity for value appreciation post-IPO [21][20]. - The company's dual listing strategy (A+H shares) is expected to enhance its capital structure and facilitate its global expansion, positioning it as a benchmark in the frozen food sector [20][21].