Core Viewpoint - The article discusses the strategic merger of "零食很忙" and "赵一鸣零食," forming "鸣鸣很忙," which is positioned as the largest retail player in China's snack and beverage market, with a focus on expanding product categories and market reach [1][3]. Market Overview - The Chinese snack and beverage retail market is projected to grow to RMB 4.9 trillion by 2029, with a compound annual growth rate (CAGR) of 5.8% from 2024 to 2029. The growth in lower-tier markets is expected to outpace higher-tier markets, with a CAGR of 6.8% compared to 4.1% [1]. - The market share in the snack retail sector is fragmented, with "鸣鸣很忙" holding a 1.5% market share, slightly ahead of its closest competitor, 万辰集团, at 1.4% [4][5]. Business Model and Expansion - "鸣鸣很忙" operates primarily through a franchise model, with 99.9% of its stores being franchises, generating approximately 98.8% of its revenue from franchise sales [6][8]. - The company aims to enhance its bargaining power through increased store numbers, which is expected to lower prices by 10% compared to competitors [8]. Financial Performance - The company reported a GMV of RMB 55.5 billion in 2024, with a total of 14,394 stores across 28 provinces, focusing heavily on lower-tier cities [11]. - Despite achieving a significant GMV, the average GMV per transaction has been declining [11]. - The net profit for 2024 reached RMB 8.34 billion, marking a 284% increase year-on-year, indicating strong profitability compared to industry peers [14][15]. Supply Chain and Operational Challenges - The company has established 36 warehouses, allowing for efficient distribution within a 300 km radius, but faced supply chain issues leading to stockouts in 300 stores due to a warehouse system failure [16][17]. - The inventory turnover days are reported at 11.6 days, which is significantly better than competitors, indicating strong supply chain management [16]. Product Strategy - The business model focuses on a mix of branded and private label products, with private label products contributing significantly to profitability due to higher margins [18]. - The company has faced challenges related to product quality control, with complaints about food safety issues [18]. Future Directions - The company plans to expand into discount supermarkets and develop its own brands, aiming to diversify its product offerings beyond snacks [19][20]. - There are concerns regarding the sustainability of its growth model, especially with recent shareholder exits and significant dividend payouts prior to the IPO [20].

Investment Rating - The report suggests a forward-looking investment value in Mingming Hen Mang and Wancheng Group, anticipating an acceleration in profitability for the leading players in the industry during 2025-2026 [5][61]. Core Insights - Mingming Hen Mang has emerged as a leader in the snack retail sector through a strong merger with Zhao Yiming, resulting in a combined entity with 14,394 stores across 28 provinces in China and a GMV of 55.5 billion [3][7]. - The company's rapid growth is attributed to the expansion of franchise stores and increased sales volume, with a projected revenue of 39.34 billion and adjusted net profit of 9.13 billion for 2024, reflecting a CAGR of 203% and 235% respectively from 2022 to 2024 [3][18]. - The Chinese snack and beverage market is valued at 3.7 trillion, with significant growth potential in the down-market and discount channels, where Mingming Hen Mang holds a market share of 1.5% [4][11]. Summary by Sections Company Overview - Mingming Hen Mang is recognized as a leading food and beverage retailer in China, formed by the merger of "Snacks Are Busy" and "Zhao Yiming" in November 2023, with a focus on operational efficiency and brand integration [3][7]. Industry Trends - The report highlights the ongoing penetration of the discount model in the snack market, with a fragmented retail landscape where the top five players hold only 6% market share [4][11]. Performance Metrics - Revenue and profit growth are driven by the rapid expansion of franchise stores, with a significant increase in store count from 1,902 in 2022 to 14,394 in 2024, achieving a CAGR of 175% [28][29]. - The adjusted net profit margin is expected to improve, with a stable gross margin of 7.6% and an adjusted net profit margin of 2.3% for 2024 [22][21]. Future Outlook - Key future drivers include operational efficiency improvements, upgrades in discount supermarket formats, and steady expansion into Southeast Asia, with initial steps taken in Vietnam [42][52]. - The report anticipates that the domestic discount sector has room for growth, aiming to match the overseas penetration rates of over 15% [5][61].

Core Viewpoint - The financial report of Wancheng Group for 2024 shows impressive growth, with revenue increasing by 248% to 32.33 billion yuan and net profit turning positive at 294 million yuan, exceeding market expectations [2][3]. Financial Performance - In Q4 alone, the company achieved revenue of 11.716 billion yuan, a year-on-year increase of 166%, and net profit of 209 million yuan, up 894% year-on-year [5]. - The overall net profit performance is close to the upper limit of the forecast range, indicating strong financial health [3]. - The gross profit margin remains stable around 11%, while the return on equity (ROE) in Q4 reached 20%, doubling from Q3, showcasing the company's strong earning capability [6]. Market Position and Strategy - Wancheng Group's performance comes amid intense competition and price wars in the bulk snack industry, validating its profitability and hinting at significant future cash flow releases as the industry stabilizes [9]. - The company is not solely focused on bulk snacks; it has broader strategic ambitions, aiming to combine elements of successful brands like Pop Mart and Mixue Ice City to capture both the lower-tier market and high-margin emotional value products [10][12]. Expansion and Innovation - The company has rapidly expanded its offline store count to over 13,000, demonstrating its deep understanding of market demand and operational capabilities [6]. - Wancheng's strategy includes tapping into the county economy, leveraging emotional value to create a high-margin business model, and engaging in IP collaborations to attract younger consumers [16][18]. - The recent launch of the "Lai You Pin" discount supermarket model indicates a shift towards a more diverse retail approach, enhancing customer base and average transaction value [30][32]. Future Outlook - Despite concerns about market saturation and competition, Wancheng Group's growth potential remains significant, particularly in lower-tier cities where it holds a dominant market share [27][29]. - The company is positioned to benefit from government policies aimed at boosting consumption, with a focus on quality-price ratio and new consumption trends expected to perform well in the capital market [25][26]. - Wancheng Group's ability to innovate and adapt to market changes suggests that it will continue to be a key player in the retail sector, with potential for further recognition and valuation adjustments in 2025 [35][36].

Investment Rating - The report maintains a "Recommended" rating for the company, predicting a relative increase of over 10% compared to the benchmark index in the next 12 months [10]. Core Views - The company has signed over 15,000 stores, indicating a sustained momentum in store openings and a strong long-term growth outlook [3][4]. - The company is expanding its product offerings beyond snacks to include daily necessities and other categories, enhancing its market presence [4]. - The launch of discount supermarkets is expected to significantly contribute to the company's growth potential, leveraging its strong supply chain and logistics capabilities [4]. Financial Performance - The projected revenues for 2024, 2025, and 2026 are 31.949 billion, 51.272 billion, and 60.712 billion RMB, respectively, with year-on-year growth rates of 243.77%, 60.48%, and 18.41% [5]. - The expected net profits for the same years are 268 million, 519 million, and 705 million RMB, with growth rates of 422.60%, 94.11%, and 35.85% [5]. - The company is expected to achieve an EPS of 1.49, 2.89, and 3.92 RMB for 2024, 2025, and 2026, respectively [5]. Market Position - The company has established a strong brand recognition with over 10,000 stores, which is expected to enhance customer traffic [3]. - The new store formats are designed to meet community needs, offering a wider range of products at competitive prices compared to traditional retail formats [4].