Investment Rating - The report suggests a cautious subscription for the company "Encounter Noodle" (2408.HK) [1][4] Core Insights - Encounter Noodle is the largest operator of Sichuan-Chongqing style noodle restaurants in China, with a network of 451 restaurants in 22 cities in mainland China and 14 in Hong Kong [2] - The Chinese noodle restaurant market is expected to grow at a CAGR of 11.0% from 2025 to 2029, outpacing the average growth of the Chinese fast food market at 9.0% [2] - The company has shown significant revenue growth, with projected revenues of 8.01 billion, 11.54 billion, and 7.03 billion CNY for the fiscal years 2023, 2024, and the first half of 2025, respectively, representing year-on-year growth rates of 91.47%, 44.21%, and 33.77% [3] - The company's net profit for the same periods is projected to be 0.46 billion, 0.61 billion, and 0.42 billion CNY, with year-on-year growth rates of 227.63%, 32.2%, and 95.77% [3] - The current median IPO price of 6.34 HKD corresponds to a PE ratio of approximately 67 for 2024, and assuming similar growth rates, a PE ratio of about 34 for 2025, indicating a high valuation [4] Summary by Sections IPO Details - The IPO price range is set between 5.64 and 7.04 HKD, with a median price of 6.34 HKD [1] - The total fundraising amount is estimated at 5.516 billion HKD [1] - The total number of shares available for subscription is 9,736,450, with 90% allocated for international placement and 10% for public offering [1] Company Performance - The company has expanded its store count significantly, with 252, 360, and 417 stores for the fiscal years 2023, 2024, and the first half of 2025, respectively [3] - Same-store sales have shown fluctuations, with a decline in 2024 attributed to price reductions, although daily orders have increased [3] - The direct restaurant profit margins have improved, reaching 12.5%, 13.3%, and 15.1% for the respective periods, benefiting from cost control and operational efficiency [3]
遇见小面（02408）：IPO申购指南