Investment Rating - The report does not provide a specific investment rating for the company [3]. Core Insights - Mingming Busy Group is recognized as one of China's largest and fastest-growing chain retailers in the food and beverage sector, with a significant market presence and a strong growth trajectory [3][4]. - The company operates a vast network of 19,517 stores across 28 provinces and all tier-one cities in China, with approximately 59% of its stores located in county and town areas [4][9]. - The company reported a GMV of RMB 55.5 billion in 2024, with a substantial increase of 74.5% to RMB 66.1 billion for the nine months ending September 30, 2025 [4][10]. Company Overview - Mingming Busy Group operates under two brands: "Busy Snacks" and "Zhao Yiming Snacks," which were founded in 2017 and 2019, respectively. The company has adopted a dual-brand strategy post-merger to leverage complementary regional coverage and consumer recognition [5][6]. - The product range includes baked goods, snacks, beverages, and more, with a total of 3,997 SKUs as of September 30, 2025, and each store typically maintaining at least 1,800 SKUs [7][9]. Operational Model - The company primarily operates through a franchise model, generating revenue from sales to franchisees and franchise service fees [7][10]. - The operational strategy focuses on enhancing customer experience through store design and product variety, aiming to increase customer dwell time and brand recognition [9]. Financial Performance - Revenue has shown remarkable growth, increasing from RMB 4.29 billion in 2022 to RMB 39.34 billion in 2024, with a compound annual growth rate (CAGR) of 203% [10][12]. - The gross profit margin remained stable between 7.5% and 7.6% from 2022 to 2024, improving to 9.7% for the nine months ending September 30, 2025, due to economies of scale and cost control [10][12]. - Adjusted net profit increased significantly from RMB 81.5 million in 2022 to RMB 912.6 million in 2024, with a net profit margin rising to 3.4% for the nine months ending September 30, 2025 [10][12]. Strategic Advantages - The company benefits from a strong supply chain, innovative product development, and a well-established brand image, which contribute to its competitive edge in the market [16]. - The management team is noted for its strategic vision and commitment to operational excellence, focusing on digital transformation and supply chain optimization [16].

Core Viewpoint - The company, Mingming Hen Mang (01768), is set to launch an IPO from January 20 to January 23, 2026, offering 14.1011 million H-shares at a price range of HKD 229.6 to HKD 236.6 per share, with a significant portion allocated for international investors [1] Group 1: Company Overview - The company is a mature and steadily growing food and beverage retailer in China, with a store network of 19,517 locations across 28 provinces and all tiered cities as of September 30, 2025 [1] - Approximately 59% of the company's stores are located in county towns and rural areas, focusing on providing a pleasant shopping experience with a wide range of high-quality products [1] - The company achieved a Gross Merchandise Volume (GMV) of RMB 555 billion in 2024, which increased to RMB 661 billion in the first nine months of 2025, representing a growth of 74.5% compared to the same period in 2024 [1] Group 2: Financial Performance - The company's revenue grew from RMB 4.286 billion in 2022 to RMB 10.295 billion in 2023, and further to RMB 39.344 billion in 2024, with a compound annual growth rate (CAGR) of 203.0% from 2022 to 2024 [5] - For the nine months ending September 30, 2025, revenue increased to RMB 46.372 billion, up from RMB 26.466 billion in the same period of 2024 [5] - The company's gross profit rose from RMB 319 million in 2022 to RMB 772 million in 2023, and further to RMB 2.999 billion in 2024, with a CAGR of 206.4% from 2022 to 2024 [5] Group 3: IPO and Fund Utilization - The company estimates a net amount of approximately HKD 3.124 billion from the global offering, which could increase to HKD 3.96 billion if the over-allotment option is fully exercised [3] - The net proceeds will be allocated as follows: 25% for enhancing supply chain and product development capabilities, 20% for store network upgrades, 20% for brand building and promotion, 20% for improving technology and digital capabilities, 5% for strategic investments, and 10% for working capital and general corporate purposes [4] Group 4: Strategic Partnerships - The company has entered cornerstone investment agreements with major investors including Tencent, Temasek, and BlackRock, agreeing to subscribe for approximately USD 195 million worth of shares at a median price of HKD 233.10 per share [2]

Core Insights - The China Securities Regulatory Commission has approved Hunan Mingming Hen Mang Commercial Chain Co., Ltd. for overseas issuance and listing, allowing the company to issue up to 76.6664 million shares of overseas listed common stock and convert approximately 198 million unlisted shares into listed shares on the Hong Kong Stock Exchange [2][3] Group 1: Company Overview - Mingming Hen Mang was formed through the merger of "Snacks Hen Mang" established in 2017 and "Zhao Yiming Snacks" founded in 2019, completing the merger in November 2023 to enhance scale and network advantages [2] - The company operates a retail network of 16,783 stores across 28 provinces and all tiered cities in China, with about 58% of its stores located in county towns and rural areas [3] Group 2: Financial Performance - In 2024, Mingming Hen Mang recorded a Gross Merchandise Volume (GMV) of RMB 55.5 billion, with a GMV of RMB 41.1 billion for the first half of 2025, representing a year-on-year growth of 86.9% [3] - According to a report by Frost & Sullivan, Mingming Hen Mang is one of the top ten chain retailers in China for 2024 and the fastest-growing among them [3] Group 3: Market Position - Mingming Hen Mang is the largest chain retailer in China by GMV in the leisure food and beverage category for 2024 and ranks as the fourth largest in the overall food and beverage sector, maintaining rapid growth [3]

Core Viewpoint - The company "Mingming Hen Mang" has received approval for its overseas listing on the Hong Kong Stock Exchange, marking a significant milestone as it aims to become the first in the industry to exceed 20,000 stores by September 2025 [2][3]. Group 1: Company Overview - "Mingming Hen Mang" is recognized as China's largest leisure food and beverage retail chain, operating under the dual brands "Snacks Hen Mang" and "Zhao Yiming Snacks" [2]. - The company has achieved a retail sales volume (GMV) of 41.1 billion RMB in the first half of this year, with revenue of 28.12 billion RMB and an adjusted net profit of 1.034 billion RMB [2]. - As of now, the total number of stores has reached 16,783, covering 28 provinces, 1,327 counties, and all tiered cities across the country [2]. Group 2: Financial Performance - As of June 30, 2025, the company reported a cash balance exceeding 2.394 billion RMB and a net value of current assets rising to 2.827 billion RMB, indicating strong liquidity and efficient asset turnover [3]. - The net operating cash flow for the first half of 2025 was 1.395 billion RMB, showcasing robust cash generation capabilities [3]. - The inventory turnover days were only 11.7 days, significantly better than the industry average, highlighting effective supply chain management [3]. Group 3: Future Plans and Investments - The funds raised from the IPO will primarily be used to enhance supply chain capabilities, improve product development, upgrade store networks, empower franchisees, and invest in brand building and digital capabilities [3]. - The company has received investments from notable institutions such as Gao Rong Chuang Tou, Sequoia China, and Black Ant Capital, among others [3].

Company Overview - Long Fung Group Holdings Limited is a leading retail pharmacy and cosmetics operator based in Hong Kong, with a market share of 5.2% in retail sales as of 2024, making it the largest pharmacy retailer in Hong Kong [3] - The company operates 29 retail stores and various online sales platforms, offering a wide range of products across 11 categories, including traditional Chinese medicine, Western medicine, health supplements, skincare, cosmetics, and household goods [3][4] - The flagship store located in Mong Kok has a total floor area of approximately 17,500 square feet, making it the largest cosmetics retail store in Hong Kong by total floor area in 2024 [3] Product Offering - The company has sold over 46,000 product SKUs during the historical record period and plans to offer approximately 28,800 SKUs in the fiscal year 2025, including over 3,000 pharmaceutical products, more than 4,200 health products, and over 6,800 beauty products [5][6] - The company has established over 40 private label brands, with more than 700 SKUs available for sale in the first quarter of the fiscal year 2026 [6] Financial Performance - The company's revenue for the fiscal years 2023, 2024, 2025, and the first quarter of 2026 is approximately HKD 1.094 billion, HKD 2.021 billion, HKD 2.460 billion, and HKD 697 million respectively [7] - The profit figures for the same periods are approximately HKD -27.14 million, HKD 145 million, HKD 170 million, and HKD 47.76 million [8] - The gross profit margins for the fiscal years 2023, 2024, 2025, and the first quarter of 2026 are 24.9%, 29.3%, 31.6%, and 31.9% respectively [9] Industry Overview - The total retail sales of consumer goods in Hong Kong are projected to grow from HKD 326.5 billion in 2020 to HKD 376.8 billion in 2024, with a compound annual growth rate (CAGR) of 3.6% [11] - The retail sales of consumer goods are expected to reach HKD 457.5 billion by 2029, with a CAGR of 4.8% from 2025 to 2029 [11] - The pharmaceutical market in Hong Kong is expected to grow from approximately HKD 5.8 billion in 2020 to HKD 8.5 billion in 2024, driven by an aging population and increased healthcare spending, with a CAGR of 10.1% [15]