Core Viewpoint - UBS has downgraded the rating of Mixue Group to "Sell" due to its valuation being higher than that of its peers in the new consumption sector in mainland China [1] Valuation Analysis - Current price corresponds to a forecasted P/E ratio of 43 times for this year and 36 times for next year, with a dynamic P/E ratio of 2.2 times [1] - Target price has been raised from HKD 435.59 to HKD 477.13, reflecting a forecasted P/E ratio of 33 times for this year and 28 times for next year, with a dynamic P/E ratio of 1.7 times [1] Business Performance - The group benefits from strong supply chain capabilities, value proposition, and a robust franchise model, maintaining strong growth momentum in its domestic business [1] - However, the overseas business is facing challenges due to increasing competition [1] Future Growth Projections - The company is expected to maintain an annual store growth rate of 15% over the next 3 to 4 years, aiming to reach 70,000 stores by 2028 [1]