Core Viewpoint - Unilever has officially completed the spin-off of its ice cream business, establishing The Magnum Ice Cream Company, which has been listed in Amsterdam, aiming to streamline operations and focus on core business areas to boost performance growth [1][6]. Group 1: Business Performance and Strategy - The ice cream division of Unilever has seen an average annual sales growth of less than 3% over the past two years, significantly lagging behind the beauty and health division, which has grown by over 7% during the same period [3]. - The ice cream business accounts for approximately 16% of Unilever's total sales, which has been a drag on overall performance, especially as the company has prioritized faster-growing categories like beauty and personal care [3][4]. - The operational model of the ice cream segment, characterized by cold chain logistics, seasonality, and capital intensity, has made it difficult to achieve synergies with Unilever's other core businesses [3][4]. - The spin-off aligns with Unilever's strategic shift towards a "leaner" business model, responding to shareholder demands for simplification and efficiency following a failed acquisition attempt in 2022 [4][5]. Group 2: Spin-off Details and Market Position - The spin-off process has been in the works for some time, with the ice cream division restructured into an independent entity and officially completing the transaction on December 6, 2023, followed by its market debut on December 8, 2023 [6][8]. - The spin-off was executed through a demerger, allowing existing Unilever shareholders to receive shares in the new company without issuing new stock, indicating Unilever's intention not to invest further capital into the ice cream business [8]. - The Magnum Ice Cream Company is positioned as the world's largest pure ice cream enterprise, operating in 80 countries with a significant cold chain asset base, including nearly 3 million freezers [8][9]. - The initial valuation of the new company is estimated to be between €14 billion and €15 billion, with an expected EBITDA margin of around 16% for 2024, reflecting a conservative valuation compared to other leading snack companies [8][9]. Group 3: Market Challenges and Future Outlook - The launch of The Magnum Ice Cream Company coincides with a growing trend towards healthier eating, which poses challenges for the ice cream industry, particularly with the rise of weight-loss drugs that may impact demand for high-calorie snacks [11][13]. - Despite these challenges, there is cautious optimism among investors regarding the new stock, as the spin-off allows the company to focus on its core ice cream business, which is often seen as a value-releasing opportunity [13][14]. - The new company plans to implement cost-cutting measures and innovate product offerings to adapt to changing consumer preferences, including marketing ice cream as a lower-calorie option and expanding into high-protein categories [14].

Core Viewpoint - Master Kong is facing a "mid-life crisis" characterized by a situation of "profit growth without revenue growth," as evidenced by its 2024 annual report showing a slight revenue increase of 0.29% to RMB 80.65 billion, while net profit rose by 19.79% to RMB 3.73 billion [2][5]. Group 1: Financial Performance - In the period from 2020 to 2024, Master Kong's revenue grew from RMB 78.72 billion to RMB 80.65 billion, with a compound annual growth rate of only 0.8%, significantly lower than the food and beverage industry's average growth rate of approximately 6% [6]. - The company's sales costs decreased by nearly RMB 2 billion in 2024 due to lower raw material prices and cost control measures, while the workforce was reduced by 2,005 employees, saving over RMB 280 million [6]. - As of the end of 2024, Master Kong's cash and cash equivalents amounted to RMB 7.52 billion, while short-term borrowings due within one year reached RMB 11.58 billion, resulting in a cash-to-short-term debt ratio of only 0.65, indicating financial risk [6]. Group 2: Business Structure Imbalance - The instant noodle segment has been declining for two consecutive years, with 2024 revenue at RMB 28.41 billion, down 1.3% from the previous year, following a 2.84% decline in 2023 [11]. - The beverage segment, which relies heavily on tea drinks, generated RMB 51.62 billion in revenue, a 1.3% increase, but the growth rate has sharply declined from 20.18% in 2021 to single digits [12]. - The market for instant noodles in China has been shrinking, with consumption dropping from 47.23 billion servings in 2020 to 43.12 billion servings in 2023, leading to a negative growth trend in the market [9]. Group 3: Development Challenges - Master Kong's distribution network has contracted, with the number of distributors decreasing by over 10% to 67,215, the lowest since 2021, which raises concerns about market penetration and channel stability [7][18]. - The company has struggled with product innovation, as new products launched in 2024 generated only RMB 800 million in sales, accounting for less than 3% of total revenue [19]. - High executive compensation persists despite the company's financial struggles, with 11 executives collectively receiving RMB 30.96 million in 2024, raising questions about management accountability [20].