Core Viewpoint - The debut of "Yujian Xiaomian" (02408.HK), known as the "first stock of Chinese noodle restaurants," on the Hong Kong Stock Exchange was met with a disappointing market reaction, opening at 5.00 HKD per share, down 28.98% from the issue price of 7.04 HKD [1][5]. Group 1: Company Performance - As of the closing, the stock price was 5.08 HKD per share, reflecting a 27% decline, with a total market capitalization of 36.1 billion HKD [4]. - The company has shown significant revenue growth, with revenue increasing from 418 million RMB in 2022 to 1.154 billion RMB in 2024, representing a compound annual growth rate (CAGR) of 66.2% [6]. - In the first half of 2025, the company achieved revenue of 703 million RMB, a year-on-year increase of 33.8%, and net profit of 42 million RMB, up 95.8% year-on-year [7]. Group 2: Market Challenges - The company's strategy of "price for volume" has led to a decline in average order value from 36 RMB in 2022 to 31.8 RMB in 2024, without a significant increase in table turnover rates, which fluctuated between 3.0 and 4.0 [8]. - The restaurant network is heavily concentrated in Guangdong Province, with over half of the restaurants located there, making the company vulnerable to regional economic changes [8]. - The franchise model, while accelerating store expansion, poses challenges for food safety and operational standardization, with reports of franchise stores facing regulatory penalties due to quality control issues [9]. Group 3: Investor Sentiment - Despite the challenges, the company attracted significant interest from cornerstone investors, raising 22 million USD prior to the IPO, indicating some institutional confidence in its long-term prospects [10]. - The IPO saw an oversubscription of approximately 426 times in the public offering, with a final issue price of 7.04 HKD per share, raising a net amount of 617 million HKD [10]. - However, the dark market trading prior to the listing indicated a downward trend, with declines of 14.2% to 14.8%, foreshadowing the poor performance on the first trading day [10]. Group 4: Strategic Concerns - The company faces a "single-dimensional" dilemma, characterized by a lack of geographic diversification, a narrow product range centered on Chongqing noodles, and a limited operational model, which restricts its ability to expand effectively [11]. - Addressing these challenges will be crucial for the company to enhance its valuation and regain investor confidence in the capital markets [11].
大跌27%！遇见小面，上市首日破发